Sportstrading and blockchain

After a long time without a post I write again. 

In the meantime it´s confirmed that Netprofit (https://www.netprofit.tennis) was a scam. There is no free lunch, if somebody asks money for picks, it´s smelly. I tried different paid services and I didn´t find an added value. 

If somebody gives you trading advices (not pick a winner) is another story. It´s essential to make the right decicision if a trade goes in a good or bad direction. Of course there is a link to the right picks... if you make good entries, your trading life will be easier. 

In summary I will go this way:

• I save the money for pick services and make my own research. 
• I optimize the hedging strategy with stop losses and taking profits.
• Less is more, only trade matches with real value. The next chance will come again.

Beside I met an expert with blockchain technology. In the next weeks I try to get some knowledge in this topic. If you have the necessary skills, you can definitely make more money than with sportstrading.

https://www.netprofit.tennis is a scam

Be aware, this service is a scam. When you give a honest feedback, you will be kicked out of the service (see the email below). 

Don´t waste your money. The planned live service is even more suspicious. Match Select finances with your money the own bets! There are definitely more serious services like for example TradeShark.

Finally it works!

Finally the strategy works! Some days ago I managed to win all trades. To be honest, that´s not an average day, but the progress is sustainable.

In general I stopped to lay the first set winner. This kind of swing trading looks tempting, but its a kind of casino. At least it doesn´t work for me.

I prefer matches with a clear favourite. If he/she goes behind, you can back this player. The service of MatchSelect (see the last posting) and TradeShark help to find suitable matches.

At the moment I still trade with very small stakes. I will make some tests about the money management. If it works I will start to rise the stakes. In my opinion is possible to scale the strategy with factor 100. So the profit can be on a good day around 500 Euro.

Let´s keep greening... I will keep you updated!

Match Select | Testimonial

The last post I published over a month ago. How it is going? 

I tested a service called "Match Select": https://www.netprofit.tennis/tennis-trading-match-research

After one month I can tell that the service is okay, but I am not thrilled about it. The main problem is the scenario, when the favourite wins the first set and loses the second one. Match Select values these trades as zero profit. Even worse is the scenario, when the favourite goes behind in the second set after he won the first one. Actually you have to hedge these kind of trades for a 0 profit. When the favourite wins with 2:0-sets (after it looked like he will lose the second set) Match Select shows a profit in their reporting... Sometimes they don´t trade matches which they publish as a pick. I don´t say that they fake their results, but for transparency reasons this behaviour is a no go.

Don´t get me wrong, Match Select aren´t cheaters, but at least they are not 100% honest. Actually I contacted Tim from Match Select and pointed the above mentioned points. I was disappointed that he never gave me a (convincing) answer, even the mistake of the reporting (a lost trade was reported as a 0) was never corrected...

Be careful, when you make a subscription of this service. You can´t expect the results they are publishing. I would say that is possible to make a profit with Match Select, but probably only around 50% of the results they show on their website. Actually is sad that Match Select shows unrealistic profits, because the product would not be that bad if the honesty would be better.

Olympic tennis tournament: Odd 1´000

 

 

At the Olympic tournament we saw almost a 1´000 odd winning! Menezes played against Cilic. The score was 6:7, 7:5, 5:0, 40:0 in favour of Cilic... afterwards the match completely turned and a bit later Menezes was 7:6, 5:7, 6:5 (with a break) ahead. A bit later the Brazilian player had even a matchpoint. The match remained crazy...  in the end Cilic found the path again (after a meander) and won 7:6, 5:7, 7:6. Well the 1´000 odd didn´t win in the end, but you could make a bunch of money trading this match. It´s a proof again, that tennis is probably the best sport to trade.

Unfortunately Fairbot doesn´t offer livescores for the Olympic tennis matches. So I can´t trade with the bot. In general I see a slight positive development of my trading approach, but the results are still not where they should be. The support of TradeShark helps, but in the end every trader is self-concentrated. Even the best trading approach is not working, when the selection process fails. This is the biggest problem at the moment. I pick too much one sided matches, where one player is dominating the other from the start to the end. If you are looking for volatility these kind of games are poison for the trading.

In general I see the issue in the selection process. I have to give more weight to the quality and not the quantity. Often I trade almost 20 matches a day... sure with a tighter selection I will miss the one and other good trader, but in general it should help to be more consistent.

TradeShark

It´s almost two weeks since my last post. It´s time for an update. I decided to make a trial subscription for the tip service of TradeShark: https://blog.tradesharktennis.com/

He trades since almost 15 years at Betfair. He has a lot of trading experience, tennis knowhow and is a patient guy. Every day you receive an email with comments about the upcoming tennis matches. For me is great, because he has more knowledge about the tennis players and more time. The research of the daily matches is time consuming and it´s his job. So why do it on my own, when another person makes great work?! For me trading is just a hobby, which hopefully brings one day a (good) side income.

The good thing is that I can invest more time for the automatisation of my trading strategy. Yesterday I traded 34 matches or let´s better say Fairbot did it for me. To be honest there were some mistakes like too early stop loss orders/hedging or redding both players instead only the leader. For that much errors the result yesterday was okay (loss of three units). On the other hand that much volatility should bring a (big) profit... obviously I am still not happy, but I see a light in the horizon. I think it was the right decision to pay TradeShark a small amount (I have to tell that the price for the service is fair!) for his tipping service and have a stronger focus at the strategy and the automatisation.

I can tell that the automated trades are quite sophisticated in the meanwhile. There are almost 20 rules per trading strategy. So it will not that easy to copy my system, when it works. ;-)

Today is another busy day on tennis ladders. It´s the week before Wimbledon and there is a lot of action. To be honest I don´t look that much forward for another Grand Slam tournament. Like I wrote some weeks ago, best of five-matches are a bit different to trade. So I have to adapt the strategy or trade only WTA machtes. Right now I have at least some more days to improve the best of 3-set-strategy.

Good development

 

After a frustrating period I am back on track. There was a time I didn´t see the forest for the trees. I went back to roots: KISS! Keep it simple stupid...

How you can see above, the results are getting better. To be honest, there are still days with losses. Now it´s important to stabilize the trading success. To reduce the selection volatility I trade parallel. Days with 20 different markets are quite normal. It´s good to have trading opportunities beside the Grand Slam tournament in France.

Beside I can tell you as a Swiss person that I don´t like the behaviour of Federer. If he is too old to play some (hard) matches in a row, he should retire. Yes, his focus is on Wimbledon... but with this attitude he will not be a real contender there. In my opinion his good times are over. The new Swiss hope is Dominik Stricker. He would love to play at Paris instead of Federer. Unfortunatley was not possible...

Keep greening! An update of the blog will come before the Wimbledon tournament starts.

Tilt mode

Probably a lot of (new) traders know this feeling. You lost a bet and you are so mad that you like to regain the money immediately. It doesn´t matter which bet, the only target is to reach the same account balance like before the loss. When you are frustrated, you shouldn´t trade, this is a golden rule!

In the past I lost a lot of money in the tilt mode. Yesterday I had a deja vu. I had to work during the day, so I couldn´t test (much) my automated system. Actually there was only one tennis match left after my working day. So I took the opportunity. Unfortunately there was not much liquidity and my automated system didn´t work properly. Suddeny my loss was two units... nothing serious, but enough to start something like a tilt mode.

So I decided to trade icehockey at the world cup. After Sweden beat Switzerland 7:0, I was sure that they were stable again. They had a 2:0 lead against Czech Republic and I decided to bet on Sweden for a possible profit (like three units) I lost before. To bad that the stake was 15 units... in absolute numbers it´s not that much, because one unit is only one Euros, but like I mentioned it was a Déjà-vu. Some years ago I lost thousands of Euros in this tilt mode.

What I learned (again)? Don´t trade when you are frustrated or bored. The next opportunity will come, sooner or later.

At least I could solve the problem in the trading system. Next week will be a lot of action at the French Open, but I have to mention that I prefer the best of three mode. My system is not configured for four or five sets. So I have to wait until each player have won one set or I trade only girls matches... if there are no live scores available at fairbot (like at the Australian Open) I will not trade at all, because live scores are necessary to trade my automated system. In some days I will know more, but even when I can trade, Grand Slam tournaments are not my favourites in a view of a trader.

Match selection

Last days brought plenty of actions on the tennis courts. Unfortunately there was no real trading flow, because in all tournaments were a lot of of rain interruptions. The weather in Europe sucks lately...

I made some minor changes in the strategy. Perhaps they went in the wrong direction. I recognized that the losses grew more than the profits. So I had to go back to the initial version.

More concerns I have about the match selection. It seems more and more that this is much more important than any strategy adjustment. At Wednesday I recognized that I lost the most money with matches of the challenger tour. Probably these matches are more unpredictable to trade than bigger tournaments. The best players of the world play "every day" on their normal levels. Lower ranked players have more good and bad days... so it´s difficult to say how they will play. 

On the other hand it´s (sometimes) really weird, how balanced matches with big favourites can be. Yesterday there were a lot of duels with one sided odds, but big volatility at the markets:

• Sinner (1.13) vs. Rinderknech 7:6, 2:6, 5:7
• Ruud (1.18) vs. Koepfer 2:6, 6:1, 6:2
• Martic (1.35) vs. Wang 6:7, 6:3, 5:7

On the other side there were plenty of balanced odds with one-sided outcomes. What I like to tell... it´s (almost) impossible to find an algorithm for selecting the right matches. In the end, a good strategy only can support the trading. Definitely there is no holy grail, the main key is the match selection! So trading is still a kind of gambling... at least I didn´t find the solution yet to make steady profits.

Risk Management

Yesterday we saw two very different finals at Rome. First Karolina Pliskova met Iga Swiatek in a very one-sided encounter. The Pole double bageled the former Rome winner Pliskova. Some hours later Djokovic and Nadal played almost three hours until the winner was found. The Spanish clay king won 7:5, 1:6, 6:3.

What you can expect with a swing trading approach? With a volatility based system is (almost) impossible to make money in such a one-sided match like Swiatek vs. Pliskova. You need a risk management which helps to reduce losses in such a case. My target is a maximal loss of 1.25 units per trade. One unit is more or less 1% of my account balance. In the mentioned female final I lost around 1.20 units. The risk management worked, even a worst case match can´t make serious damage to the bank.

Nadal vs. Djokovic should been a great opportunity to make a good profit. My strategy brought a "non trade outcome". Probably you would say, that´s a bad strategy. Perhaps you are right, but my model said that Novak Djokovic was no (great) value after the first set. Like I mentioned in an earlier posting, I have an automated trading strategy. Perhaps I missed a manual opportunity (because it´s Djokovic and not a no name player), but in general I prefer a missed chance instead of a lost trade. 

I would call my strategy a risk based approach. Automated trading can´t consider names or a game history... but in the long term the number based trading should be the right one (for me). The numbers don´t lie and told that Djokovic was (at least based on the starting odds) no value. Of course there is no guarantee that the starting price is right and the market corrects itself during the first set. In my opinion the starting price is quite fair and not based on emotions (like it often happens while the match is inplay).

Next days I will test a lot. At the moment I focus on quantity. It´s important to have enough tests to find mistakes in the automatisation. Afterwards I have to consider more and more the quality as well. Like I mentioned in the last post... the key is the match selection. The best automated betting strategy will fail, when you trade the wrong matches.

Bad variance or bad strategy?

Lately the results were not that encouraging anymore. I corrected some mistakes with the automated trading. Some commands didn´t work properly, so the stakes (and the losses) were bigger than accepted.

The good news is that fairbot (tarding tool) is now working like I want. The bad news is that the last days were quite disappointing. It could be bad variance, because I traded (too) much for testing purposes. On the other hand, there were some disappointing facts:

• The match selection is the key. The system doesn´t compensate a bad variance, at least not that much I thought.
• The losses are (still) too big in comparison to the profits. 
• The outcome of the first set is (too) important.

I am still positive, but the strategy needs some minor adjustments. Besides I will test a light progressive staking plan. In some days I will write more about it.

Keep greening!

Scaling up and accepting losses

Yesterday I found an interesting article about scaling up the stakes: How to handle beeing a profitable Sportstrader

To be honest I was thinking about rising the stakes after a month with a decent profit. Last time I wrote about the organic growth of a balance. Probably is the only successful way for handling bigger stakes. Time will help in two areas. First the system is approved after a big amount of trades, second the slowly rise of stakes is a good way to get used to higher amounts.

Beside it´s very important to accept losses, even the best ones have bad periods: Daily25

To reduce the variance and bad luck of a single outcome, I started to trade parallel. Sometimes I trade four matches at the same time. This is one of the big advantages which brings an automated trading system. Mentally it helps, because the next chance for a profit will come very soon. Sometimes just one point decides if a trade brings good profit or a loss. Especially these moments are easier to digest when you know that the next opportunity is just around the corner. 

Actually it just happened in the match between Koepfer and Garin, where the German missed two break opportunities for a big profit. Now I am looking for the next (better) trade...

Automated Tennis Trading

I like to update my blog more regular again. It helps me to analyze the trades I made and avoid mistakes in the future (if I made them). 

I still - like six years ago - trade with the help of fairbot. In my opinion it´s by far the best tool. It helps me a lot, especially in automated trading. Six years ago I traded mainly manual. It´s extremely time consuming and sometimes frustrating. You wait for hours for the right moment to open a trade. In the worst case the trade is not going in your direction and you become frustrated. This leads to impatience and the risk rises to make a costly mistake. Now it´s different. In the morning I select the matches I like to trade and fairbot is doing the rest for me. Beside it has the advantage that there is no risk of chasing or overtrade. I have clear rules what fairbot has to do under which circumstances. 

Yes, I have no live TV pictures to react. Sometimes is a disadvantage (especially when there is an injury), but in general I think is not necessary to watch the matches. The markets often overreact, because a player doesn´t play his best tennis. It can change immediately... I don´t think that TV coverage helps a lot. Probably is even the opposite, because the pictures lead you in the wrong direction.

How you  can see above I made yesterday a gross profit of three Euros. Well, it´s not much, but in comparison to the stakes I am happy about it. My stake per bet is just one Euro. How you can see the single losses are distinctly smaller than the profits. In comparison to earlier times I made significant changes in the risk-/reward-ratio. If I win a trade is often three times the stake I can lose. So the pressure for a high hitting rate is not that high. In this point the automated trading helps a lot. The greens are just growing and there is no nervous finger which likes to hedge the trade too early. There a predefined rules, which define what will happen under which scenario.

Of course there are some disadvantages with this trading approach too. Yesterday Ons Jabeur had to withdrawn, because of an injury. Like I mentioned, I don´t trade with (quick) TV pictures. So my position turned in a red one, when the market recognized that she has serious medical problems. 

It´s still a long way to go, but at the moment I feel quite comfortable with this trading strategy. It´s not time consuming and it´s free of emotions. Sure my predefined entry- and exit-points are not always perfect. Before the match starts I have to define the entry and exit-levels. So sometimes a break or a win of a set brings more ticks that I was asking for. It´s the price for not beeing the whole time in front of the computer. Trading can be very dull (even when you are successful), so I accept this disadvantage (also the one with the injuries). Instead of trading professional, where the pressure is immense, I prefer to trade for an additional income. 

My wife accepts this hobby (more or less... for her is just gambling :-)), but she doesn´t want that I deposit more money to b´Betfair. So I have to grow organic. Right now I have just 60 Euros+ on my account. Actually my 1 Euro flat stakes are quite high in comparison to my account balance. :-)  Perhaps I can convince her to deposit a bit of money if I can prove her that my system works. In exchange I can buy her a nice (Gucci) bag. ;-)  

Organic grow is healthy, but as well time consuming. You need months, when not years, to reach a five digits balance. My target is to trade with 100 times bigger stakes (100 Euros per trade instead of 1 Euro). So my balance has to be around 10´000 Euros. If I have to grow only organic it needs time, a lot of time, which I lose for making real money.

My first target is to reach 100 Euro. With this amount I have at least the balance I should have for 1 Euro flat stakes. In the last post I mentioned a negative progressive system, which should support the strategy. When I learned something in the past is the fact that the best (progressive) staking plan doesn´t help to to convert a losing strategy in a winning strategy. I am 100% sure that only a system that works with flat stakes can work with progressive stakes. Nevertheless I am convinced that a progressive staking plan can help for improving your betting results.

In the next post I will write more about my slightly progressive staking plan.

Is there an edge?

Since my last post over a year passed away. It was February 2020 and the corona pandemic just started (in Europe). In the beginning a lot of tennis tournaments were cancelled and the trading opportunities were low. So I lost a bit the interest to trade.

Lately the action on the tennis courts rised again. So I gained the desire to restart with trading. 

Right now I am analyzing if a progressive staking plan can support a betting strategy. I watched a lot of videos about Fibonacci, Martingale, Labouchere, Oscar Grind and other negative progressive systems.

In my opinion a progressive staking system will never change a losing strategy in a winning one. There has to be a real edge. If you find one, you can improve your results with an appropriate (progressive) staking plan.

At the moment I am testing an automated lay system with flat stakes. If I see a real edge I will think about a combination with a slight progressive system like LP28.

The first results are encouraging, but obviously that data volume is too small after a week to celebrate. I had three winning days (one of them big with a profit of ten units), a day with zero profit and a day with a loss of around two units. Before I traded a similar system and I never lost big. The account balance didn´t change much and was more or less stable. Unfortunately there was no growth neither. The next weeks and months will show if I made the right adjustments to have a strategy with an edge or it´s still only one which is a zero sum game. 

I am back...

After almost five years I am back. I have no target anymore to work as a full time trader. It´s not worth to quit my good paid job. Nevertheless it´s great to make some extra money with tennis trading.

Right now I am testing a system which works automatic. I place the bests before the match starts with fairbot. So it´s possible to make money without any involvement and you don´t have the opportunity to chase. ;-)

At the moment I just risk a view bucks, but the system is scalable. So I look forward to further testing. I keep you informed and will post the results at this blog. In this year the so far resulted yield is over 20% and the profitability around 55%. Probably these values will be lower in the future, but a yield of 10% seems a realistic target.

Up and down

After I reached two days ago a new all time high, I am back to 0. Sometimes is hard, but as a trader you have to live with this variance.

Like I wrote yesterday, I have to improve my patience. In general I recognized that is better to trade the underdog than the favourite. The market often expects a turn around when the player with the bigger name is trailing. So the value is often poor. Yesterday Serena Williams started at 1.05 (against Mattek-Sands). Despite the number 1 was struggling, the market kept the trust. You could back her for 1.50 at the end of the second set for a while. Of course that can be an option (definitely better than back her at the start for 1.05), but the better way would lay her since the start. The worst case is loosing five ticks, they will not kill you.

Here I see a lot of potential. Instead of waiting for an expected comeback, it's often better to lay the big name at the start or at an early stage of the match. Many times the favourite doesn't start well. Even Djokovic (against Seppi) had some problems in the beginning. Unfortunately I traded for comebacks of Radwanska (against Keys) and Ferrer (against Chardy). Probably it was not a good valuation of the situation. The mentioned players have not the best season and Ferrer was even injured for a while. On the other hand their opponents are quite strong at the moment. I make still too often the typical mistake to go with the bigger name. I have to be more selective!

I recognized that another good blog (BIG PAIRS) is gone. In this point I have to agree with Cassini. It's astonishing how many blogs start with a lot of enthusiasm (and often good results), and suddenly they are not updated anymore. Probably it was another loudmouth. I was a bit suprised, how his profit was skyrocking. Often this is a sign that something is smelly. I am definitely not the most successful trader (yet), but at least I am honest. I try to keep the blog interesting, but is getting more difficult. My trading approach is quite stable now, it's just a kind of bad game selection I mentioned above.

Today I will trade the whole evening and night. I hope I can fight back from a small downfall. If not, it's not the end of the world. I just made an overview of my financial portfolio and recognized that my (virtual) Betfair account is only 2% of it. It's the part with the highest volatility, so I can't invest too much money at sportsmarkets. I am sure that this global view helps to strenghten my mind. In the end trading is mainly a psychological game. The long term winners have discipline and are mentally very strong. Caan wrote once again a good article about it: 4 trading fears. I agree with everything. Especially the part with successful people is interesting. Yes, it can be one of my problems. In my job career I didn't fail often. So it's still hard for me to lose trades. I have to learn and accept that only the long term is important!

There's a light on the horizon!

The strategies are stable since a while. I feel more and more comfortable with the new trading approach. I think about the market and not about technical aspects like risk-/reward-ratio, entry- and exit-levels or profit. The trading is in the flow now. The improvement also has an impact on this blog. I recognized that is a lot more difficult to write, when everything is going alright. Well, it's not a bad feeling at all. :-)

Of course the trees are not growing in the sky, I still have a kind of overtrading. Probably the small stakes have an impact on this behaviour. When I have spare time to trade I like to be involved in the market. With small liabilities the temptation to enter the market - even with an inadequate situation - is bigger. Like I mentioned at an earlier post, I set a monthly budget. I didn't use this (new) money yet. Every month I will put more money on this virtual betting account. So I can rise the stakes steadily.

On the left side you can see the devolopment of the profit since I rised the risk-/reward-ratio to 1.0 and above. The variance is a lot higher than before, but real hurtful downfalls are not expected. Before I had to win four trades after a lost one to be be breakeven. Now one is enough to be in the green zone again. In general I am more relaxed. This feeling has a positive impact on my trading.

It's still a long way to go, but I feel the progress. There are no more doubts about the strategy. The practice will help to become a better trader. Full time trading is no target anymore, I feel 100% happy about my new job. Sportstrading should be an interesting side income and a good diversity to the stock markets.

 

Variance is part of the trading

Lately I was more focused on the stock exchange than on Betfair. That was one of the reasons, why I didn't trade much. Beside there was not that much action during the evening hours. The whole week I just made six trades. Nevertheless it demonstrated, how the future could and should be.

First of all it showed that the variance is high. After five trades I was in the red zone, one good one helped me to reach an all time high.

Second the biggest profit is higher than the biggest loss. This is important. You have to cut your losses and let the greens run. This principle is implemented in my trading strategy. The average profit is lower than the average loss. This is not alarming, because it has to do with partly won trades. I have two targets after I opened a position. The first level is the breakeven value, the second one gives me in every case (it doesn't matter which player will win the match) a good profit with a risk-/reward ratio above 1.00. So, when only the first target is reached, normally results a small profit (and sometimes a small loss, when my forecasting was too progressive what doesn't happen that often). This fact deforms a bit the comparison between average profit and average loss. This is also the reason, why I can't calculate the yield anymore. Because of stop loss levels, my liability is higher than the real risk. So it would be very complicated and boring to calculate this figure. Beside it results an over analyzing of my trades, which were a handicap in the past. In my opinion the chart and figures shown above are enough to control my trading activities.

Like I wrote in my last posts, I can handle now my emotional side. This helps to accept a bad run like I had after a promising start. Of course I just made six trades and you can't over-interpret that, but a promising tendency is here. I am happy with my new approach, and I start to make the right game selection. The main reason is an improved patience. Before I made a trade, even when the scenario was not the best. Now I am more selective, this is also a reason why I just made six trades.

Next week starts the US Open. I will focus more on the WTA tournament. First the volatility is higher than at ATP matches, because the serve is not that important. Second I don't have much experience with five set matches. In general I am happy that the last preparation tournaments are over soon. At the Salem Open (ATP) and in New Haven (WTA) you never knew if a high ranked player is enough motivated to give 100%. I saw some players tanking, for example Karolina Pliskova. It's quite annoying, when you lose money because a player prefers to have a break before an important tournament than proceed...

A mixed portfolio for diversification

Last days I recognized that only a very small part of my money is involved in tennis trading. The stock exchanges are tumbling, because the economy of China is probably not growing that quick like expected. To be honest, the nervous markets are not good for my portfolio. I lost a high four digits amount in the last days (well before I made a five digits profit, but losses always hurt). Unfortunately the stop loss orders didn't help much, because the markets (at least in Europe) bounced back today. Well, I expect another red day tomorrow. So it's probably better being less involved in the stock markets and concentrate more on the sports trading.

Well, to make a long story short, I saw that sports trading is just a very small part of my side income. So I decided to judge it in a main context. In the future I will invest a part of my savings in sports trading and a part is reserved for the stock exchange. Beside I will keep cash, my life insurance and of course my appartment. With this diversification I should have a good base for a growing fortune.

How this decision influences my trading? I will be more relaxed. Sports trading is just around 20% of my savings. Beside I prefer to trade and not to analyze. Unknown mentioned it already some weeks ago. I think it didn't help my trading to report and comment the KPI too often. I have a tight money management and a decent risk-/reward-ratio, that's enough. I will upload my trades to mybetlog (www.mybetlog.com), but not publish the KPI section anymore. For example it's very difficult to calculate the yield with so much positions and stop losses. The basic stats like average or biggest profit and the development of the bank are part of the mybetlog tool.

About trading itself. The last week I finished the setup. I talked about it in my last post. There are three different stakes and every position is not closed before I reached a risk-/reward-ratio of 1.00. With this approach a strike rate of 50% is enough to have a small profit. The theoretical stuff is done, now is about practice. In the future the posts will be again more about my time on the ladders and less about the approach.

Monthly budget and defined risk-/reward-ratio

I already wrote about the opportunity costs. This week I felt stronger than ever that they are too high with the current setup. It doesn't make much sense and fun to trade four or five hours for a possible profit of two or three Euros. Of course the sense of this approach is the protection of the bank. It's not recommended to trade with high stakes with an unproven strategy.

First I have to tell that the strategy is not that unproven. Sultan had success with it, and on the markets you can see that the method with mainly low lays are a famous and successful one. Second I recognized that the new approach works for me if I stay patient. Third you can define an amount, which you can afford to lose without bad emotions. It's definitely higher than the current stakes. Fourth the opportunity costs are lower... obviously you can lose more money (and then you have opportunity costs and real costs), but in the last weeks I always managed to end in the green zone.

I decided to trade with a monthly budget. Of course it's not the target to lose it, but with this definition I can trade with normal stakes (5 Euro = 1* trade, 10 Euro = 2** trade and 20 Euro = 3*** trade) and an adequate money management.

Beside I could finalise the often discussed topic with the risk-/reward-ratio. I analyzed a lot, and decided that every single position need at least a rate of 1.00 (after commission). This means that I risk one Euro to win at least one. As a consequence I "only" need a strike rate of 50% to trade breakeven.

The biggest change I made since last week are the addition of different levels I hedge a trade. While you can green low odds quick, you have to be more patient with odds around 2.00. I had to make this adjustment, because I recognized that some trades had a terrible risk-/reward-ratio and crashed my profit and loss statement.

With the mentioned adjustements I start again to report the trades to mybetlog. I will write from time to time on this blog about the financial development. Beside I will think about a reintegration of the KPI section. Like a reader mentioned, it's my blog and I like the numbers. I just couldn't handle the pressure as good as I should.