I was sent a link today to an interesting trading method:

http://www.racingtraders.com/scalper

Basically what it involves is flipping a coin to decide whether to back or lay. If the price goes against you, you use your stop loss. If it goes the way you hope it will go, then you let it move a few ticks and then close the trade. The theory is that although you will lose as often as you win, on average when you win, you will make more than you lose when the price goes the 'wrong' way.

What does everyone think of this system?

Regards

Jeff

Nice bit of software.

In terms of the strategy, I think the bit in the video where he says "I don't have a clue what I'm doing. It's very important that comes across in this video" sums it up really

I haven

It would certainly of been interesting to have seen the results if he had 10 losers out of 11 as opposed to the 10 winners.


Paul

I tend to be on the losing side all the time.

I've tried this method actually - I too was on the mailing list the 'The Scalper' newsletter as I am a fairly experience Betfair trader (although tend to favour Bet Angel Professional in peference to BetTraderPro software-wise).

In theory, sounds decent. Didn't work so well in practice (as with so many things).

If you look back in history Adam was around in the pre-software app days on Betfair scalping the market. He did ok for a period and then blew up, so decided to sell and promote software instead. His old style of traded stopped working some time ago. He forgets to mention on his site clearly that the P&L he shows was produced from the days when he only used the native Betfair interface.

He no longer trades seriously, it seems he only does this for promotional purposes, so I would heavily discount any 'advice' he offers.

I agree that Adam's move away from trading towards software development is a definite indicator of how hard it has become to be a consistently profitable scalper/WoM trader on Betfair, but I use the method profitably myself so I don't think all is lost!