The home of intelligent horse racing discussion
The home of intelligent horse racing discussion

2% per day

Viewing 15 posts - 1 through 15 (of 30 total)
  • Author
    Posts
  • #619
    Wallace
    Participant
    • Total Posts 862

    The following was lifted from another place.  I though it would be worth discussing here as we all make plans to do better in the new year!

    If you had a Betfair account with a balance of £100 could you easily increase this balance by 2% in one day?

    Is it easy to win 2% of your bank in a day?

    What methods would you use; bet, lay trade?

    Is 2% a good return for a day on Betfair?

    #34545
    dave jay
    Member
    • Total Posts 3386

    I think 2% a day would be a waste of time on £100.

    #34546
    Artemis
    Participant
    • Total Posts 1736

    2% is probably a fair return on £100, yet I agree with Dave that serious betting with such a small bank is not worth very much effort.

    A much larger bank, say £20,000 might be much harder to employ to earn a 2% return (£400 a day).  It would amount to making about £150K a year playing the exchanges and I don’t think there are many who do that.

    #34547
    clivex
    Member
    • Total Posts 3420

    Probably find that you will be able to do it with a small bank and then when you up it to a big bank….it all falls apart

    Way of the world…

    #34548
    Sailing Shoes
    Member
    • Total Posts 368

    Quote: from clivex on 10:36 am on Dec. 28, 2006[br]Probably find that you will be able to do it with a small bank and then when you up it to a big bank….it all falls apart

    Way of the world…

    Talking from experience Clive? ;)

    #34549
    clivex
    Member
    • Total Posts 3420

    No… Thank god…!

    This will always be a hobby for me :cheesy:

    #34550
    apracing
    Participant
    • Total Posts 3115

    <br>If you start with £100 and earn 2% per day, every day of the year on which racing takes place, the miracle of compound interest would produce an end of year total of £109,641 after 350 days betting.

    Which is the best possible demonstration of why something that sounds straightforward isn’t at all easy in practice, otherwise we’d all be seriously wealthy.

    AP

    #34551
    Sailing Shoes
    Member
    • Total Posts 368

    Quote: from apracing on 11:48 am on Dec. 28, 2006[br]

    Which is the best possible demonstration of why something that sounds straightforward isn’t at all easy in practice, otherwise we’d all be seriously wealthy.

    AP

    Full of cheery optimism :D

    #34552
    Wallace
    Participant
    • Total Posts 862

    A gold star and a Mars Bar to Alan!  You picked up on the underling theory and summed the challenge and the problem.

    Artemis, starting with a £100 bank and compounding at 2% per day would return a fraction less than your £20k and £400 per day.  The £100 bank would be worth over £135,000.  Based on 365 days.

    As Albert Einstein said compound interest is the "8th Wonder of the World."

    Trading on favourites or second favourites and looking to profit from a 3 or 4 tick offset is easy if you have the right tools and the discipline.  Its very easy to do it with a couple hundred pounds but when you try and play for high stakes all the real flaws would surface.<br>

    (Edited by Wallace at 12:07 pm on Dec. 28, 2006)

    #34553
    cormack15
    Keymaster
    • Total Posts 8818

    So, to clear 50k a year (allowing for a couple of weeks in the Bahamas spending it) you’d need to clear a grand a week, or £142 per day, needing to clear 2% on a bank of £7150 each day.

    Do-able or not?

    #34554
    Wallace
    Participant
    • Total Posts 862

    Yes Cormack your figures are correct.

    A line from my spreadsheet;<br>04-Aug-070.02£7,064£141.28

    With a start bank of £100 on 1st Jan by August your standard of living could be maintained.<br>:biggrin:

    #34555
    Sailing Shoes
    Member
    • Total Posts 368

    Are you going to try this then Wallace?

    Worth it for the £100 IMO – then again it’s not my £100:biggrin:

    #34556
    cormack15
    Keymaster
    • Total Posts 8818

    You clearly mean my WIFE’s standard of living.

    OK – for a bit of fun I’m going to start with the £100 bank and, starting January, I’m going to have a go each Saturday (and Sunday when possible) at this 2% malarkey, appreciating that by working on it Saturdays only it’ll take me until 2114 to get anywhere.

    Wallace – what should I end up with by the end of the year – assuming 45 Saturdays?

    I’ll start a thread in the systems thread to update progress to keep it out of the way.

    #34557
    cormack15
    Keymaster
    • Total Posts 8818

    All ideas for strategy gratefully recieved btw.

    #34558
    Wallace
    Participant
    • Total Posts 862

    After 45 days the bank would stand at just £239.  The real attraction of the get rich quick scheme is in the exponential growth from little and often approach.

    I’m also going to do a trial using a new Betfair account with exactly £100 on the 1st January.  My strategy will be to scalp a 2 or 3 tick profit from the first favourites across the card.  Using FairBot to place the bets in sequence.

    To illustrate the effect of compounding in an exercise like this the end of month bank balances are as follows;

    January £185<br>Feb £322<br>Mar £594 <br>Apr £1,077<br>May £1,989<br>Jun £3.603<br>Jul £6.656<br>Aug £12,298<br>Sep £22,276<br>Oct £41,158<br>Nov £74,552<br>Dec £137,741

    You can take the month of January 08 off for your hols. <br>

Viewing 15 posts - 1 through 15 (of 30 total)
  • You must be logged in to reply to this topic.