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Table of Contents
Section
Page
1) 10,000 ft Summary
5 5
3.1) Question 1- Why does the price of a draw often rise pre kick off?
3.2) Question 2- Why is the Draw price slow to move during the opening
minutes?
5) Entering a Trade
6) Exiting a Trade
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10
10
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7) Other Points
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Strike Rate
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11
12
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Bank Size
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Results to Date
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It is recommended that you read through this entire ebook, along with the Illustrative
Examples, and test the method before putting actual cash on a trade. The successful
traders put time into their trades.
A quick summary of the method is as follows:
Find a game involving a super favourite
Lay the Draw pre kick off - ideally a few hours before kick off
Once the game kicks off - leave the trade open for 10 - 20 minutes, depending
on how volatile the price movement is on the Draw price and the amount you are
willing to lose on each trade as a result of decreasing price movement.
When the trade is open:
1) If the super favourite scores
Italy - Juventus
France - Paris SG
Dutch - Ajax
These teams usually dominate lower table opposition, and when at home, can be priced
very low.
Super favourites can be spotted in any world wide league. Cup competitions also throw up
several super favourites, given the possibility for lower league teams to meet teams from
higher divisions (although I tend to avoid cup competitions for this strategy).
I am often discouraged from placing bets on super favourites to win. As football markets
are generally efficiently priced, this can lead to little value being gained from such bets.
This method does not seek to place bets on super favourites to win, but rather, seeks
to trade on price movements that are unique due to their involvement.
While this late money can often reduce the super favourites price (e.g. the back price
for the super favourite might move from 1.45 to 1.42), this reduction is minimal and there
is not a huge profit opportunity.
We are more interested in the effect on the Draw price.
With this late money coming in, the price movement on the super favourite amplifies the
price movement on the Draw price as well as the price for the underdog to win. A 0.03
price movement on the super favourite to win has a larger effect on the Draw market.
By taking a price several hours before kick off, we can potentially get a far better price
for laying the Draw. As the price of the Draw often increases, by kick off, we have a
good safety cushion in place for our trade (e.g. the difference between the price of the
Draw on our early trade and the price at kick off).
3.2) Question 2- Why is the Draw price slow to move during the opening minutes?
The game kicks off, and for the opening minutes, the price movement on the Draw is slow.
This occurs for several reasons.
The following 3 scenarios look at various possible trends which can occur in the opening
minutes:
Scenario 1 - the Super Favourite starts strong
This is the most likely scenario. The super favourite looks to get in early shots and put
their stamp of authority over the perceived weaker opposition.
The opening minutes confirm the markets expectations, and as a result, it is likely that
the pre match prices will stay very stable.
Similar to scenario 3 discussed below, there is also money on the sidelines, waiting to
enter the marketplace, most likely to back the super favourite. When more money backs
the super favourite, it is effectively laying (on a staggered basis) the Draw and the
underdog, keeping both markets propped up.
In this scenario, the Draw price is kept afloat, with little price movement in the opening
minutes.
3)
4)
As kick off approaches, if the price of the Draw has increased, you have built a
great safety cushion. If not, you can still rely on the price of the Draw remaining stable
for the opening minutes.
5)
At kick off, using your maximum loss tolerance, calculate your exit price for the
trade, assuming the game stays at 0-0. This is referred to as a stop loss and is a very
important calculation to plan in advance.
Putting a stop loss in place before every trade allows you to set a clear objective and
enforces discipline. I usually set a stop loss of 12% on every trade.
How long does it take for the Draw price to move 12% in play? That depends on the
match and circumstances. Historically I found I could stay in the Draw market for 12
minutes, before the Draw price moved against me by more than 12%.
Over time, I found if I could build a safety cushion getting pre kick off prices, this could
extend me well beyond the 12 minutes, sometimes for as long as 25 minutes, before my
12% threshold was met. Having a trade open for this period of time, but for a relatively
small risk is a huge advantage of this system.
The Illustrative Examples will provide clear details in these areas later.
The underdog scoring first is a rare occurrence when playing against a super favourite
and should be seen as a cost of using this strategy. In 56 trades to date, the underdog
has scored first in only 4 such trades.
Illustrative Examples 7 and 8 show details of real trades involving this scenario.
Section 7) Other Points
Lay the Draw Early
If you can lay the Draw at a price reasonably comparable to the bookmakers price, it is
very likely that you will end up building up the safety cushion (e.g. the price of the Draw
at kick off will be higher than the price you laid at). Betfair very often offers superior
prices compared to bookmakers.
Where a game has a 3pm kick off on a Saturday - why not look to get a price matched on
Betfair on Friday evening at a price that is the equivalent to the bookmakers? Should it
remain unmatched, you have all night for the opportunity to get matched, and you can
reassess the following morning. Should it be matched overnight (or partially matched),
you have a far better chance of building up a safety cushion that will keep you in the game
for longer.
Strike Rate
What strike rate can you expect with this strategy?
You cannot expect a high strike rate with this strategy. This is a strategy I have been
using for a number of years, but have only kept detailed records since January 2014. In
this timeframe, I have entered 56 trades, with 23 winning trades, which equates to a
41% strike rate.
You pay a small price for being in the market (unless the underdog scores first) and if a
super favourite scores first, the wins are big, and easily make up for several losses. The
Draw Price
What price range should you lay the Draw at?
As low as possible is the obvious answer! The majority of my trades have a price range of
between 3.5 and 7
The lower the price of the Draw, the slower the market tends to move.
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If a draw price is at 11.0, the price tends to move downwards quicker than, say, a price
of 4.2. In my experience, the optimum price is between 3.5 and 6.0.
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If the game remains at 0-0 and I need to trade out, my loss is around 12% of the 100.
If the underdog scores first, I can expect a loss is the region of 20% to 30% on my 100.
I keep a bank size sufficiently large enough to cover my liability for a 100 lay stake on
odds of usually between 3.5 and 8.0.
Trading Out and Greening Up
If you do not know how to trade out of a position, and green up, then I suggest you Google
search these terms and become familiar. This system requires a foundation knowledge of
very basic trading and Betfair. Software is not mandatory for this system.
Results to Date
I have entered 56 trades since Jan 2014.
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29 trades have seen no goal which has forced me to trade out with a loss of 372
4 trades have seen the underdog score first, leading to a loss of 124 This has
Outcome
Profit (Before
Commission)
51.41
a profit
2
52.00
53.60
12
58.75
11.62
12.00
26.83
39.86
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Outcome - After 3 minutes Zabaleta scored, giving an instant profit. The Draw price
rose to 14.0, which I happily traded out for a 51.41 profit (before commission)
regardless of the outcome.
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Outcome - 12 minutes in and Etoo scores, probably a minute or two before I trade out.
The Draw price rose to 15.0, which I happily traded out for a 52 profit (before
commission) regardless of the outcome.
3
Real Madrid v Villarreal
Date and Kick Off Time - 8 February 2014/ 8.00pm
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Illustrative Example Game Pre-match Trade - Laid the Draw at 5.80 for 100 at 10.11am
Price of the Draw at Kick Off - 6.80
Stop Loss Price - 6.11 - rounded up to 6.20 - once this price is hit, I trade out
This was one of the earlier trades and one where I built up an excellent safety cushion
of
1.0.
Outcome - With Bale scoring after 6 minutes, the trade is an instant winner. The Draw
price barely fluctuated in this time frame. At 1-0, the Draw price rose to 12.5, and I
traded out for a 53.60 profit (before commission).
4
Hertha Berlin v Bayern Munich
Date and Kick Off Time - 25 March 2014/ 7.00pm
Pre-match Trade - Laid the Draw at 6.60 for 100 at 8.50am
Price of the Draw at Kick Off - 7.40
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Illustrative Example Game Stop Loss Price - 5.88 - rounded up to 5.90 - once this price is hit, I trade out
This was a game I was expecting Munich to attack right from the start and got an early
lay for a good safety cushion.
Outcome - Kroos scored after 6 minutes, making no need for the safety cushion.
Interestingly, as the market reopened at 1-0, I looked to get a price matched at 14.0,
but saw 16.0 available as the market was starting to resettle. Getting this matched, I
traded out for a 58.75 profit (before commission).
5
Juventus v Parma
Date and Kick Off Time - 26 March 2014/ 7.45pm
Pre-match Trade - Laid the Draw at 4.8 for 100 at 12.50pm
Price of the Draw at Kick Off - 5.00
Stop Loss Price - 4.34 - rounded down to 4.30 - once this price is hit, I trade out
I laid at a price relatively close to the bookmakers and expected the pre-match price to
increase higher than 5.00. Unfortunately it failed to do so.
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Outcome - There was a quiet start to the game. I find the prices are always slow to
move in Italian games. However, by the 12th minute, my stop loss was reached and I
traded out for a 11.63 loss.
6
Kilmarnock v Celtic
Date and Kick Off Time - 14 March 2014/ 7.45pm
Pre-match Trade - Laid the Draw at 5.60 for 100 at 2.19pm
Price of the Draw at Kick Off - 6.40
Stop Loss Price - 5.05 - rounded down to 5.00 - once this price is hit, I trade out With
a great safety net in place, I was expecting a strong start from Celtic.
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Illustrative Example Game Outcome - A surprising quiet start to the game forced me to trade out with a 12.00
loss, once my stop loss was hit.
7
Cardiff v Liverpool
Date and Kick Off Time - 22 March 2014/ 3pm
Pre-match Trade - Laid the Draw at 5.20 for 100 at 6.50am
Price of the Draw at Kick Off - 5.70
Stop Loss Price - 4.69 - rounded up to 4.70 - once this price is hit, I trade out
I expected Liverpool to attack this game from the start and was very happy with my prematch safety cushion.
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8
Galatasaray v Kasimpasa
Date and Kick Off Time - 19 April 2014/ 6pm
Pre-match Trade - Laid the Draw at 4.00 for 100 at 12.50pm
Price of the Draw at Kick Off - 4.20
Stop Loss Price - 3.61 - rounded up to 3.60 - once this price is hit, I trade out.
My first venture into Turkish football. I noticed a sluggish price movement on the Draw
price in the build up to kick off and only achieved the minimal safety cushion.
Outcome - 7 minutes in, and Kasimpasa score, forcing me to trade out with a loss of
39.86 and experiencing a painful debut in Turkish football. This is an example of a
terrible trade and the trade out loss is larger than normal due to me not understanding
the market movements of the Turkish league. Larger leagues price movements are far
easier to predict and tend to be less volatile.
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