So here I go then with something that has been troubling me for a while and this is to do with Loss Recovery Systems. Now before anyone sighs and raises their eyebrows at my stupidity/naivety (delete as appropriate)
it does very much seem to even a struggling trader like me that these systems are very seductive in their lure and are nothing more than Martingales in disguise (however intricate they sometimes may be).However there is something that is gnawing on my brain that my limited understanding cannot get my head around, hence me asking for help. Do they or do they not stand a better chance of working in horseracing markets simply because many backers are potential future layers and vice versa meaning that if you were to initially back for example and the price moved against you, a second larger entry at a better price isn't the same as a martingale on say roulette where we are essentially dealing with independent events because in horseracing there is more chance of the price retracing because of numerous factors that wouldn't apply to a game like roulette.
Or am I missing something important here regarding the dynamics of horseracing markets and that prices may steam/drift far more powerfully than I originally imagined and therefore it is closer to a martingale strategy than what seems apparent. I hope all that sounded sensible and I didn't waffle too much and lost the thread. I know what's in my head but just hope I have phrased it correctly. I really hope Peter could comment although I know this has been discussed before on this forum as I have read the thread but I don't think my question was answered (or maybe it was and I missed it). Anyway, a big thanks in advance to anyone who could help me see further than I already am.
