Scale Out is my favourite Betfair exit strategy. It basically means gradual exiting the trade in smaller parts. The ultimate goal in Betfair trading is to manage your risk. It should be an ultimate goal in any form of trading. You can’t never be sure what will happen next in the market. So you have to proactively try to decrease your liability whenever possible.
However, trader has to also keep in mind to maximize the earning potential whenever possible. Scale Out is an excellent technique which combines both – decreasing your liability and maximizing your earning potential.
Scale Out – Betfair Exit Strategy
I believe it’s essential to learn how to properly exit the trade. Entering the trade is just the first step and is not a subject of this article but exiting your open position often makes a difference between profit and loss. When using Scale Out technique, you want to ensure you will end up with a profit. Once the market moves into your favour, you can exit few smaller bets to decrease your risk. This gives you some breathing room so you can now focus on maximizing your earning potential.
If you feel the market will move into your favour, let the position run as much as possible. The golden rule of trading says “Cut your losses, run your profits”. Try to capture as much of the move as possible. You can always divide your remaining position into smaller parts and exit them even more gradually.
If you feel the market move has turned against you, don’t worry – you have locked some profit at the beginning of the trade. Even if you exit the trade slightly below your entry price, you should end up with a small profit. Small profit is always better than a small loss!