Good Evening folks,
I have a question about properly defining risks when trading pre off horse racing, I have read that the best prespective to approach a trade is to know your risk before you put on the trade. Example being if your tict size is a pound and your stop is five ticks then your risk is five pounds right? well not when you then red up.I know the calculation is loss divided by stop odds = loss, but if I try to work that out in fast moving markets the price has moved.Can anyone offer me any advice on this matter or on the genral subject on good mental approachs to trading. thanks for your help, greg
Defining your risks?
on the grid tick the green box. on the ladder tick the greening box.
the trading profit column on the grid will show your red/green position.
on the ladder the trading profit column will show your red/green position at the various prices dislpayed.
you could also use the profit calculator again tick the greening box. no need for quick mental arithmetic.
the trading profit column on the grid will show your red/green position.
on the ladder the trading profit column will show your red/green position at the various prices dislpayed.
you could also use the profit calculator again tick the greening box. no need for quick mental arithmetic.
Hi 75ne,
Thanks for your reply, I do already use the profit/loss column on the ladder but this only comes up after i`ve put my trade on. I was looking for away to know my exact risk before i put my trade on.Sorry don`t think i got my question over very well, not sure if it`s even nessacery to be that excact maybe i`ve got too bogged down with the theory of it, i`m still trying to get my mind into the best place to trade. thanks anyway greg
Thanks for your reply, I do already use the profit/loss column on the ladder but this only comes up after i`ve put my trade on. I was looking for away to know my exact risk before i put my trade on.Sorry don`t think i got my question over very well, not sure if it`s even nessacery to be that excact maybe i`ve got too bogged down with the theory of it, i`m still trying to get my mind into the best place to trade. thanks anyway greg
not too sure what you mean.
Do you you mean how to calculate?
For example
£2 lay at 6.8 loss of 13.6
£2 back 5 tick loss at 5.9 gain 11.8
gain 11.8 plus loss of 13.6 ******* 11.8 -13.6 = loss of 1.8
red up loss of 1.8 at 5 ticks stop of 5.9 ******* 1.8/5.9 = 0.3050 rounded up is a loss of 0.31 pence
Do you you mean how to calculate?
For example
£2 lay at 6.8 loss of 13.6
£2 back 5 tick loss at 5.9 gain 11.8
gain 11.8 plus loss of 13.6 ******* 11.8 -13.6 = loss of 1.8
red up loss of 1.8 at 5 ticks stop of 5.9 ******* 1.8/5.9 = 0.3050 rounded up is a loss of 0.31 pence
Thanks for the way to work out the loss if the trade goes against me,so how do you predefine your risks? Do you do this calculation before each trade? Do you bother to predefine your risk?Is there a better way? Spose thats what i`ve been getting at all along soss for going round the houses
I think I understand what you mean (at last).
I know what liability I will have whenever I enter. Im always aware of how much it increases if I decide to let it run x ticks away from me. I rough it in my head, and let the trade profit column sharpen it up for me. it becomes second nature after a while.
If you set the auto staking box to liability as opposed to tick and tick auto update. In the pound box enter your amount, for example £100.
Ba will now calculate your stake as your liability for example.
Current lay price is 3.4 your stake will be £41.67 displayed in the lay box standard setting on the ladder , giving you a liability of £100
Stake = liability/(odds – 1) 100/(3.4 -1)= £41.67 giving a liability of £100 (£41.67 * 3.4 =141.67------------141.67-41.67 =£100)
Likewise your back stake will be £100 equal to your liability.
Obviously if you wished a max liability of £5, you would enter £5 in said box and your lay stake would be £2.08 (plug numbers in above formula) and liability £5.
If this is what you mean and liability staking is something you wish to try I suggest if you put your total bank in as your liability, then set the predefined stake box’s up to some smaller amounts. Again for above example at odds of 3.4 you will be laying with full liability of your £100 bank, probability not a good idea to use full liability as stake all of the time, best chop it up in to 6 pre-defined lumps for example,
£20, £15, £10, £5, £2 ,£17.5. and use these amounts at APPROPIATE times in the market. BE VERY WARY OF USING FULL LIABILITY ESPECIALLY 1 MINUTE OR LESS BEFORE THE OFFICAL OFF.
Don’t risk going inplay with your bank (or any liability for that matter) it will bite you in the arse sooner rather than later.
I know what liability I will have whenever I enter. Im always aware of how much it increases if I decide to let it run x ticks away from me. I rough it in my head, and let the trade profit column sharpen it up for me. it becomes second nature after a while.
If you set the auto staking box to liability as opposed to tick and tick auto update. In the pound box enter your amount, for example £100.
Ba will now calculate your stake as your liability for example.
Current lay price is 3.4 your stake will be £41.67 displayed in the lay box standard setting on the ladder , giving you a liability of £100
Stake = liability/(odds – 1) 100/(3.4 -1)= £41.67 giving a liability of £100 (£41.67 * 3.4 =141.67------------141.67-41.67 =£100)
Likewise your back stake will be £100 equal to your liability.
Obviously if you wished a max liability of £5, you would enter £5 in said box and your lay stake would be £2.08 (plug numbers in above formula) and liability £5.
If this is what you mean and liability staking is something you wish to try I suggest if you put your total bank in as your liability, then set the predefined stake box’s up to some smaller amounts. Again for above example at odds of 3.4 you will be laying with full liability of your £100 bank, probability not a good idea to use full liability as stake all of the time, best chop it up in to 6 pre-defined lumps for example,
£20, £15, £10, £5, £2 ,£17.5. and use these amounts at APPROPIATE times in the market. BE VERY WARY OF USING FULL LIABILITY ESPECIALLY 1 MINUTE OR LESS BEFORE THE OFFICAL OFF.
Don’t risk going inplay with your bank (or any liability for that matter) it will bite you in the arse sooner rather than later.