Hey @acelad, this is a great post mate. I have been hunting around for some good sports trading strategies and this looks spot on. As you say in the article, being strict and disciplined when getting out of losing positions is vital.
Just one question, how are you calculating your risk/reward ratio... this seems pretty key to the whole thing so more info on this would be great!
Great question @marcusbraeburn!
The risk-reward ratio is very simply calculated by:
Potential Profit / Potential Loss = Risk/Reward Ratio
For example, using the Belgium O2.5 trade above:
Target price: 8 ticks @ 1.90
Stop-loss: 4 ticks @ 2.02
= 8 / 4 = 2, so 2:1 (for every 1 we risk, we expect a reward of 2, meaning a strike rate of 1 in 3 will allow us to break even as -4 -4 +8 = 0).
Aiming to publish my results post later today :)
OK, yep, that makes perfect sense... thanks for responding. So am I right in thinking that you cash out wherever you are before KO if neither the TP or SL has been reached...?