Best Reverse Price

[Emtaxx]

Hi sorry in advance for this one..

I'm struggling for some reason to get my head around what best reverse price means.
So some examples: The markets back price is at odds of 5.9 and the Lay price is at 6

Best back price would be 6 right?

But best back reverse price is 5.9? So i would wait for the price to come and hit 5.9?

Is this reverse back bet not the same as setting parameters to back 1 tick below best price? or is it something else?


I have more questions to follow once an answer has been given sorry, just confused on this for now and now sure how it will affect offset bet etc too

[ShaunWhite]

Best back is 5.9, it's the best available price to back at. Sometimes called the touch price.

Best reverse is the price on the other side of the spread, so if you're backing it's the current lay price and visa versa. In your example backing at best reverse would be to place an offer at 6.

Think 'Best' = take and 'Best reverse' = offer.

[Emtaxx]

Nice one Shaun thank you. I can see how this would be an advantageous parameter to use as youre able to wait for the price towards you rather than chasing it

[ShaunWhite]

Depends, if you take a price you're giving away a little bit of value but should get your match. But if you offer you get a slightly better price, but risk either not being filled or adverse selection..... Aka your orders are more likely to be filled when you're on the wrong side of future price movement, leading to systematically worse outcomes than random fills.

[Emtaxx]

Yeah I get this a lot and it really sucks.. what’s the best thing to do to counter it ? I’ve stacked up a few other things like VWAP etc but it still happens rhen you’re left in the red again and really suck lol

[Tuco]

PRAY you get matched on the reverse side is the best remedy!

https://www.youtube.com/watch?v=mye1aCskFcM

"All my life I wanted to make it to the top"
"Some said I wouldn't"
"They told me no, but I didn't stop"
"Working hard, making those movies everyday"
"And on my knees every night, you know I pray"

[ShaunWhite]

Yeah I get this a lot and it really sucks.. what’s the best thing to do to counter it ? I’ve stacked up a few other things like VWAP etc but it still happens rhen you’re left in the red again and really suck lol

If you don't get filled offering then take the best price and swallow the 1 tick hit. You can't have it both ways.

All methods of controlling exposure and varience come at a cost. You need to stop worrying about taking a loss, it's better than limitting the loss with a poor value bet unless you can afford to do it.

Are you looking at the EV of your individual bets? Unless you know that then you don't know where you're making or losing money.

Vwap? How's that going to help? And with vwap having a T1 and T2 (time range) and needing 2 or 3 vwap ranges to agree to have any chance of being meaningful then it's just a rabbit hole.

[Emtaxx]

Im still not 100% sure on what reverse price is when I think deeper on it (sorry)

So best back is 5.9 and best lay is 6

Backing at reverse best price is that the same as laying at 6 then?

Or the same saying back one above best price?

[Emtaxx]

I thought adding a vwap at like 80% back would allow for a bias in direction to help layer things up for a more accurate purchase

[jamesedwards]

Im still not 100% sure on what reverse price is when I think deeper on it (sorry)

So best back is 5.9 and best lay is 6

Backing at reverse best price is that the same as laying at 6 then?

Or the same saying back one above best price?

In your example;
Backing at best price would place an order at 5.9 (therefore will match instantly as long as the price doesn't move during placement).
Backing at best reverse price would place an order at 6.0 (you will need to wait until somebody takes your offer).

I strongly recommend you get yourself loaded into Practice Mode and do some trial-and-error trades to learn what happens and how it all works.

[Emtaxx]

Yeah I also agree with that comment too. I’ll do this tomorrow etc.

I just wondering why this is added in when it’s the same as back at best price and then you can add 1tick above.

That’s the same as best reverse price then as it’s one tick above ?

Not sure what the reasoning is to add the same function but with different naming convention?

[jamesedwards]

Yeah I also agree with that comment too. I’ll do this tomorrow etc.

I just wondering why this is added in when it’s the same as back at best price and then you can add 1tick above.

That’s the same as best reverse price then as it’s one tick above ?

Not sure what the reasoning is to add the same function but with different naming convention?

The gap between the best and best reverse price will often be more than 1 tick.

[Emtaxx]

Ah I see that’s why then.. interesting

[Tuco]

The gap between the best and best reverse price will often be more than 1 tick.

...and that Emtaxx is known as a 'gap'

[Emtaxx]

Im having a bit of a pickle atm, I started a bot when I first came here and it went really well. Since rhen I have dropped it to peruse other bots and ideas before then combining them all at a later date.

However a current situation Im working on in essence is a scalp bot, it goes well and then a price gets bought and doesn’t buy out off its position and going into the red, no matter what.

It’s a hard question to answer tbh as there’s so many things to consider and also you guys helping me will take away a potential edge from you guys right.. but any ideas on how this can be reduced ?