PDA

View Full Version : Hedging to a specific %



Costanza
19th December 2009, 12:36 PM
Hello all, just wondering if it's possible to do this on the Toy? I don't normally hedge out to equalise profits, I prefer to split the profit 40/60 or 70/30 on the unders / overs market. Is there any function that does this automatically?

I saw this function on a less well known trading application a while ago, which I trialled but have never seen it anywhere else - was a simple slider which showed prefered % and automatically hedged when set.

How does everyone else perform this task if they need to do it?

The Geek
19th December 2009, 12:40 PM
There is no function to do this in TT currently.

rockaren
19th December 2009, 04:01 PM
There is no function to do this in TT currently.

will be in near future ?

The Geek
19th December 2009, 05:25 PM
Sometime between now & forever. Won't be in the next major release though.

winehouse
19th December 2009, 06:43 PM
Hello all, just wondering if it's possible to do this on the Toy? I don't normally hedge out to equalise profits, I prefer to split the profit 40/60 or 70/30 on the unders / overs market. Is there any function that does this automatically?

I saw this function on a less well known trading application a while ago, which I trialled but have never seen it anywhere else - was a simple slider which showed prefered % and automatically hedged when set.

How does everyone else perform this task if they need to do it?

That would be a nice addition.

I currently just go for 50/50, but could see how a different %age would be useful.

doubleback
27th December 2009, 08:13 PM
Here is the maths should you want to do it manually:

Straight Hedge:

(Stake * Back Odds) / (Lay Odds) = (Lay Stake) = Equal green screen

eg: (10 * 3.5) / (3.2) = 10.93 = 0.93 Green.

Hedging To A Percentage:

If you want to leave more green on the back then your lay stake would be anywhere between 10-10.93, depending on what balance you require, to do this first you need to work out the unhedged profit:

Back Odds - Lay Odds = Profit Odds

3.5 - 3.2 = 0.3

Profit Odds * Stake = Unhedged Profit

0.3 * 10 = 3

So if you wanted your back bet winnings to be 1.50 (Required Back Bet Winnings), that would equate to 50% of your unhedged profit.

(3 / 100) * 50 = 1.50

Required Back Bet Winnings (this figure can't be more than 3 in this example) / Lay Odds - 1

1.50 / (3.2 - 1)

1.50 / 2.2 = 0.68

Therefore if you layed 10.68 @ 3.2, your back bet will pay out 1.50 if it wins and 0.68 if it loses.

Hope that makes sense!!

Of course you could always use this calculator (http://www.chromaweb.com/bets/calculator/index.php) to do it for you!