Trading Q and A Megathread Ask Us Anything!
-
@chris-king ROI = (Net Profit / Cost of Investment) then in excel just click percentage and it will work it out, if not you can alternatively do this x it by 100 to get the percentage figure in decimal.
-
@ryan I see your point yes, thanks. Not long ago I added ROI to my test spreadsheet as another feature, but set it up to calculate from the original bankroll and thought that can’t be right so thought this is the best place to ask the question.
I agree, with what you’re saying though about ROI, i don’t focus on that at all really. I just want to make sure i can be profitable, so focus on value odds and strike rate as you say.
-
@chris-king They both would be playing the stakes but they wouldn't be playing the same game - so you'd never be able to compare them because the one with the shorter bank might get a higher ROI short term but it wouldn't last.
For me I don't really put too my emphasis on my trades as ROI - for me I focus on strike rate and am I profitable.
I've always found looking at ROI has clouded my judgement - I'll be in a trade and be going well the last trade I did was 40% ROI on that trade this needs to be the same.
-
Hi all,
Was just wondering about Return On Investment (ROI).
As traders, should we be using our bank roll or our played stakes (be it back stakes or liability, if laying) as our investment value when we calculate?
ROI = (Net Return / Cost of Investment) x 100
To me it seems correct to use the played stakes value as that is the money that is being put at risk, or rather invested.
For example, two traders could start trading. One with £100 bank roll and the other with £1000 bank roll. They trade the exact same events using £10 stakes. If they calculated ROI using their bank roll as the investment value, they would both get a different return, however are actually investing/risking the same value in their staking.
-
@dan-mackinnon if it’s the money below the odds then yes that is the money that’s queued to be matched - hence why sometimes there’s more on one side than that of the other.
-
@oliver-preen My understanding is that the 'matched' amount is how much has already been commited. So you open a trade and someone else has taken it. It doesn't matter if it's back or lay because it's the same market.
Are you talking about underneath the odds? So you might have Back at 1.11 and underneath says £2k and lay at 1.12 which underneath has £150? If so I believe that's to do with the money queued to be matched. The reason why it might be much higher than the other is because that might suggest which direction the odds are moving to. If you wanted to back using the above example there is already £2k in front of you. If you search for a ladder graph it's a bit easier to visualise, but it can be a tricky concept to get your head around.
-
@martin said in Trading Q and A Megathread Ask Us Anything!:
@oliver-preen do you mean that on that market it had 92k matched on the over 0.5 back option and 15k matched on the back under 0.5 option?
Yeah I think so..I think I was getting a bit confused. Lol.
the money I was seeing was for backing over and backing under 0.5. I was thinking the money I was seeing for under 0.5 goals was the lay side of the over 0.5 goal market lol.
Ignore my absolute stupidity. -
Hi Peeps… as no question is a stupid question I’ll ask a potentially stupid question. I sometimes use Betfair graphs and volume to decide on whether to enter a trade. I mainly trade football on the over goals markets. The thing I’m having trouble understanding is the volume of money put on one particular event happening (backing) vs the volume of money laying the same event. If the volume represents money that has been matched how can there be such a massive difference. I don’t often bet on the over 0.5 goals Market because to me that’s a pure gamble but I’m always fascinated by it and the volume of money that goes on that particular event happening. To give an example one game had £92k matched for over 0.5 goals and the other lay side to that had £15k, is it the liability that’s not showing for the layers that means the backers get paid? As I say this is probably a very stupid question lol.
-
@stephen-mcintyre the liability is how much you are risking so removing that leaves you a free bet, for example if you backed man u to win and they score a goal then the odds will drop so you then lay man u for the same amount you backed to leave yourself a free bet or cashout. once used to this you can play around with the amount you lay so you can leave a little bit of money on one side and more on the other. im not the best at explaining but that is the basics of it.
-
Hi all
What is ‘removing liability’ and how do you do this in trading, I’ve heard this mentioned several times but new to trading and just trying to understand how this completed
Thanks
Steve -
@lee-leadbetter I echo Lee’s comments here, hit the nail on the head.
-
@lee-leadbetter I would suggest between 2 and 5% risk per trade, it’s better to start at the lower end and work upwards rather than the other way. I’d suggest readjusting the stake no more often than monthly
-
@Ryan-Carruthers
And all members,
I am currently using geeks toy practice mode to allow me to learn and develop without risking my bank. Once I am confident in all my strategies and rules for those strategies. I will then use my real money.Now my question is when I use my real money what kind of percentage of the pot do you think should be risked on one trade.
Secondly, would you adjust stake per day, week or month?
Hope that makes sense. -
@karl-mccarthy Iv invested a fair chunk on ethereum and when it hit 1.5k the other day i withdrew all my liability, so essentially playing with free money now (well free but still have to tax it
) i was hoping for 2k but too much risk, i can see it being a 2.5k by end of year at least. I love crypto currency and taking advantage while the hype is around, do i see it long term i dont think anyone knows. Its why my trading bank went from 20k to back to 1k because i invested quite heavy 
Now im using the profits from that investment back into my video production business so it can be self sustainable. Its good to diverse your income streams, learnt that the hard way when covid hit with only really having betfair trading as my main income. -
@karl-mccarthy Im starting to try learning but it is such a complicated minefield! Good thread to read through here, some good advice from members.
https://forum.betfairtradingcommunity.com/topic/1649/stocks-shares-and-forex-trading-thread
-
Would have loved to have gotten involved in the Coinbase listing yesterday. Get in and out at the right times. Not nearly ready to venture into this kind of trading as yet but does anyone here get involved in other trading such as stocks or Forex?
-
@gaz-hutchinson he enters at KO
-
@Ryan-Carruthers Following your email - Is this how I retag?
-
@martin-futter OK, cheers Martin, yep that's a good idea to record both sets of results.
