Staking

It’s late so I’ll keep it brief. The P&L for the week is good for Aus but flat for UK. As I said I would last week, I’ve now reduced the UK stake to a level similar to what it was mid August, which is when I was seeing good steady returns with little noise on the charts.

So I’ve dropped from 0.016 x bank (1.6%) to 0.007 x bank (0.7%). If I get returns as before I’ll have to make a decision on what to do with the excess bank (only need equiv. 2% stake) –

  1. Leave it where it is, doing nothing.
  2. Create a second Betfair account, for other/future bots or split activities.
  3. Remove from Betfair, put it in savings to be returned to Betfair when required.
  4. Remove from Betfair, spend it (I doubt this will happen).

Any suggestions welcome.

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7 thoughts on “Staking”

  1. I wouldn’t recommend a second Betfair account, especially if it is run from the same machine, IP address, funded with same card/house/surname etc. etc.

    Betfair is rather strict on that. Otherwise, for example, you can have a pair of bots giving early markets the runaround, creating false liquidity. Not that such a thing doesn’t happen at present.

    Shove the excess into a rolling P2P account. You’ll get better than a bank (typically 3%+) and you can get it back whenever you want. Assetz Capital and RateSetter are two that come to mind.

    BPT – http://www.betfairprotrader.co.uk/

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    1. Thanks for the info on P2P, I’ll have a look.

      Re 2nd account, I meant doing it openly. I’ve had a look and your are right. It used to be allowed when I traded a few years ago but multiple accounts were stopped on 31st January 2013, so that isn’t an option.

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  2. The API now allows you to set various strategy references with bets and is included in the returned data so no real reason for the need to have two accounts if you’re coding your own bots.

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  3. I would stake based on the confidence of the open trade signal. I would set a minimum stake, if that minimum is not achieved because the signal is not strong enough then don’t open the trade. If the signal is very strong I would cap it at a stake that I feel comfortable. I would never stake based on a fixed size or % of bank.
    PS: As Pete mentioned new API introduces the possibility of setting references on bets so you can track your bots.

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    1. Hi. Thanks for the comment. Setting according to confidence is a good idea but I don’t really know at the moment how I’d measure that with the current setup. I have previously talked of adjusting stake based on market conditions but was thinking more of volumes present, so you’ve definitely given me something to think about,.

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    2. I would have thought the success rate of the entry signal (i.e. strike rate) married to the average yield per trade is ideal for Kelly criterion.

      Make it a fractional Kelly if volatility is a worry.

      But, as trader247 has said in the past, any increase in trade size has a detrimental effect on returns.

      BPT – http://www.betfairprotrader.co.uk

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