Greyhound prices can be reasonably volatile and therefore potentially profitable for betting traders who want to trade the odds. There are however, different approaches that can be taken when looking to trade, and these approaches require subtly different methods.
Trading is simply a method of both backing and laying the same selection in order to lock in a profit. In just the same way as stocks and commodity prices can be traded, so can the odds in a dog race. The key of course is to know in which direction the odds are going to move – and being right.
Two Trading strategies
When trading on the dogs, there are two routes that punters can take. The first does not necessarily require any specific knowledge in terms of Greyhound racing itself – realistically however, knowledge will always be beneficial. The second method requires the trader to draw up a tissue market, or handicap figure, in order to make an assessment of which way the prices are likely to go, and that can then be used as guide.
Betting the trends
Many traders rely solely on market movements to guide them. The actual selection is largely, sometimes entirely, irrelevant, as are the relative chances of each dog. The aim is purely to spot trends and betting patterns, and then profit from either following those trends or identifying a point at which they may reverse. Getting caught with a position that is still ‘open’ at the off – effectively having a bet, is the worst case scenario in this style of trading. Ideally trades will have been closed out for a profit, or at least closed at a loss if things have gone awry. A genuine bet is to be avoided as much as possible. Losses are generally controlled with the equivalent of a ‘stop loss’ – a price at which the trader will admit defeat and cut losses.
In order to trade, there needs to be a certain amount of ‘liquidity’ within the market. In simple terms, this means there needs to be backers and layers on either side of the prices. There is a feeling that spotting trends is more difficult in markets with poor liquidity – a price could be moving based on a lack of money rather than market sentiment for example. While this might be the case at certain stages, trends are still identifiable, but they tend to be compacted into the late flurry of betting action seen shortly before the off, which offers much less chance to actively trade them.
Predicting price movement
The second approach to greyhound trading, is to draw up prices based on a scoring system, selection method or handicapping strategy, and look for differences in those prices. The theory being that this will ultimately result in the original price moving towards the ‘true value’ identified pre-race, and therefore that price fluctuation is trade able. The key difference here, is that if a price is deemed too big, the backer can strike a bet, acknowledging that the first aim is to trade for a profit, but knowing that the fall back position is to let the selection run. The bet was taken based on solid value, so backing it outright is not a disaster, it just puts more betting capital at short term risk.
Lay to Back
Likewise, if a price is too small, a selection can be laid, with a view to backing the same dog when the market moves as expected. Should the market not move against the selection, the lay will still represent solid value – assuming the selection method is sound – so can be left to run if there are no opportunities to trade out for a profit.
These two strategies illustrate the subtle, but key, differences in particular trading styles and highlight the importance of understanding the planning required to trade effectively. As with other forms of trading, entry prices, exit prices and a longer term plan all need to be in place in order to avoid frequent losses. Trading can be however, very profitable when approached correctly, especially with a sound selection method such as those here at www.tipsta.co.uk.