Laying short priced/false favourite and handling
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Good day all,
I run a single tennis strategy which is laying short priced, false favourites from the start of set 1, expecting the underdog to break their serve at which point i cash out for profit.
If the above doesn’t happen there are a couple of ways i mitigate risk.
Profit and loses range between 10%-30% of my stake value.
My question is I’m finding that on some trades which includes all outcomes; wins, loses, scratches, that there can be 25% profit or 5-10% loss before the target position arrives for example, profit is available before the underdog breaks serve, or a very small loss is available after I’ve begun risk mitigation (because i will no longer win the trade) before the underdog breaks back to reduce my overall loss or end of 1st set arrives where i will exit/end the trade entirely
When these opportunities arrive, would you take them and move on?
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@Martin Hi, thanks yes i think I’ll have to do this as you say to find out. I track the trades so in time should be able to.
I think getting out of a losing trade with the smallest loss could be something i focus more on rather than staying in for slightly greater wins. Kind of the same thing but the opposite.
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@Chris-King this might be one where you look at average profit and find the balance. You could compare the average of the 10-30 range to the 25% one and see which would make more money over time.