Pre-Race Trading Part II
Last week I highlighted the best way to profit from a strong inward move in the pre-race markets – a ‘steamer’ as it’s known in the betting world.
Hopefully, some of you will have been able to put that advice into practice and managed to boost your bank in the process.
Markets like that can be beautiful to trade. The only drawback is that they are few and far between on most afternoons; most of the time markets – particularly favourites – tend to move up and down and quite often back up again.
So how do you profit from these regularly? After all, forecasting highs and lows is notoriously difficult. There’s an old saying among Stock Market traders: ‘Attempting to predict the bottom of the market is as dangerous as catching a falling knife.’ Ouch!
Well, fortunately we have the tools to help make our trading pain free.
Both BetAngel and Cymatic Trader have charting facilities which make taking advantage of these moves much easier. I have used Cymatic charts here, as they are completely free of charge at the moment.
I use very basic settings, with just the price of the horse and it’s Triangular Moving Average (10) on the chart – and what I am looking for is a good favourite that has been on the drift and is likely to reverse back inwards in the final 2 or 3 minutes before the off.
Then we need the actual price of the horse to come down fully below the TMA line – as it will very often then carry on downwards for a very profitable number of ticks.
This happened perfectly with Simply Rouge in the 16.40 at Market Rasen. The cross over point came when the price was about 4.4, but it’s always best to wait for the price to consolidate before moving in. There was plenty of time to get in at 4.2 and the price then went steadily down, with barely an upward move at all, to 3.4.
A £100 stake would have brought a guaranteed profit of more than £22.
And the story was very much the same with Illusion Of Time in the next race at Downpatrick:
This time it was a nice drop of ten ticks from 3.8 to 3.3 – and a profit of around £15.
When you use this technique it’s important to wait until the final few minutes before the race – I rarely go in with any more than 3 minutes to go – because you can get a number of false moves earlier which can catch you out. The closer to the race the more genuine the moves tend to be.
And be ready to take a small loss if the market moves back up. Like any indicator, it’s not right 100% of the time, but when it is it does tend to be very profitable.
As with any trading pre-race, it is advisable to paper trade until you are thoroughly au fait with how the strategy works. And then build up slowly from very low stakes.
Good luck to everyone who tries this system, and if you have any questions, I’m more than happy to answer them.