Pre-race cross matching

[PeterLe]

I see. Thanks Andy
Regards
Peter

[Euler]

The thing I noticed on the inrunning stuff was that, given the right circumstances, it's possible to get matched on bets that would previously have been impossible to get matched on. Say a faller trading at 1000. Very odd to see, but it's obviously a side effect of the way the bets are being matched.

[Euler]

Betfair announcement: -

Following a previous trial, pre-play cross-selection matching (‘cross-matching’) will be turned on for UK and Irish win markets. This shall commence on Saturday 15th January.

Cross-matching will be turned on for all pre-play win markets on British and Irish horseracing generally around 10-30 minutes before each race.

Cross-matching is already turned on when these horseracing markets go in-play.

Cross-matching was introduced on most sports during 2008 and has had a significant, positive impact on liquidity. It has meant that a customer’s bet is more likely to be matched than would have been the case without cross-matching. When a bet request cannot be matched by an opposing bet on the same selection, cross-matching will attempt to match the bet request with unmatched liquidity on the remaining selections in the market. Cross-matching incorporates ‘best execution’ meaning that whenever the bet matching algorithm can match a bet request at a better price than requested, it will do so, resulting in the customer making the bet request getting the best possible price.

We don’t expect customers to notice any material difference in the way the win markets operate.

[Euler]

We don’t expect customers to notice any material difference in the way the win markets operate.

[/quote]

Not convinced about that. I think there will be changes in the market. We will be collecting data anyhow and should be able to see any difference.

[PeterLe]

Very interesting..
My initial thoughts were that I would run a scalping BOT and compare/contrast with previous results...but given that all my previous data is based on the last 4 mins before the race (as this is the point of max liquidity and volatility), I'm not sure how I could compare it...
So interested to see what you find

[lewismbet]

I am already running a scalping bot and have a pretty consistent benchmark for its performance. While I will not be collecting quantitative data from within the market I will be watching and should quite quickly be able to determine whether I am affected [positively or negatively].

Will definitely be interesting to hear how others fare.

[hgodden]

I cant see it making a huge difference? There aren't that many markets that would provide extra liquidity

[PeterLe]

You're probably right H, I dont think there will be a massive change, maybe it will just suppress the over round?

I ran a test some time ago (detailed in here :

viewtopic.php?f=2&t=2285

..I've since 'tweeked' and revised this strategy...but found that I can 'spend' my 20 data req better elsewhere

..Its always worth re visiting old strategies though when things change

[Euler]

We have seen at least a couple of races today where the cross matching has affected our trading positions so far.

[andyfuller]

What were the circumstances where it affected your positions and how did it affect them? Were you trading as a team on the two races as you say 'our positions'?

[Euler]

LOL, no, just using the collective because we were all affected, as I imagine others were also.

[andyfuller]

Ah okay - can't say I have noticed anything yet though it has been a bit manic. How did it seem to affect you guys?

[Euler]

In that Curley race there were a few heavy lays hit the market. Normally they book % would shoot off but then settle down again. Today all the other prices shot in the opposing direction.

[hgodden]

In a lot of races where any of the horses are making up a large % of the book, if suddenly there is a spike of money for that horse in either direction then its going to affect the others immediately. Anyone using lots of money to hold prices from going in one direction will be exposing themselves to a lot of risk.

I think the general wildness of the markets today hasnt been caused by that though. Hope not anyway I've been spanked a couple of times good and proper!

[Euler]

I've arsed up four times so far today, so I think that's just a general market thing. I also thought about the manipulator who will get filled whether he likes it or not now, by the look of it. Will make it harder to hold a price, I agree.