The Various Betfair Trading Styles and How They Work
One of the most difficult things to accomplish is becoming a successful trader
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Traders often lack the discipline or support to follow their Betfair Trading approach on a consistent basis–and they frequently have a mechanical edge working against them.
At Digitex Futures and Lion Asset Management, via the Digitex University, our mission is to produce more successful Betfair Traders. We will help you become better through our state-of-the-art user interface and commission-free Betfair Trading. And since our interests are aligned with our Betfair Traders (we both want token appreciation) our exchange will increase your chances of winning over other futures exchanges.
Various Styles of Betfair Trading
There are several reasons people are consistently failing at Betfair Trading. One of the main ones is because speculators fail to select the proper style of Betfair Trading. In our recent survey, we asked our community what style of Betfair Trading you’re used to, and most of you (40.4%) answered day Betfair Trading.
Here, we’ll review the various styles and discuss the art of successful Betfair Trading. Regardless of the different classifications, essentially, there are three different styles of Betfair Trading. The list includes discretionary Betfair Trading, system Betfair Trading or a combination of both.
Discretionary Betfair Trading
Discretionary Betfair Trading is also known as decision-based Betfair Trading. In other words, the trader decides which trades to take based on the current conditions of the market. This type of approach gives the trader more freedom in terms of trade selection, risk management, and profit target.
Let’s review an example of a discretionary trade.
On January 5, 2018, Bitcoin (BTC) generates a bullish breakout when it crosses above its 20-day moving average. However, the breakout occurs on very light volume. Therefore, the trader decides to ignore the Betfair Trading signal because the breakout was not confirmed by heavy volume.
In other words, the trader made a “discretionary decision” to skip the trade and wait for a better opportunity. Please review the chart below (Chart #1). This manner of Betfair Trading is known as position Betfair Trading.
As a general rule, discretionary Betfair Trading should only be attempted by Betfair Traders who have years of real-time Betfair Trading experience. It takes several years of training and practice to master the art of successful discretionary Betfair Trading.
The largest risk of discretionary Betfair Trading is that the trader lacks the ability to distinguish between winning trades and losing trades. In other words, inappropriate trade selection is causing the trader to miss several winning trades.
System Betfair Trading
Another popular Betfair Trading style is system Betfair Trading, also known as rules-based Betfair Trading or mechanical Betfair Trading. This type of approach requires the trader to follow a pre-determined set of rules. Please review the below chart (Chart #2).
The trader has decided to use a 25-day moving average to generate buy and sell signals. Each time a Betfair Trading signal is triggered, the trade is automatically executed. She/he does not employ any type of discretionary method to filter the trades. Instead, the trader takes every trade, ignoring any outside influences. This type of approach can involve day Betfair Trading or long-term position Betfair Trading.
Novice Betfair Traders with very little experience will probably achieve better results by using a 100% rules-based system. Why? Because it forces the trader to take every trade. Novice Betfair Traders simply don’t have enough experience to decide which trades to ignore. Therefore, they inevitably skip many of the winning trades, which results in poor Betfair Trading performance.
The largest risk to system Betfair Trading is the inevitable losing streaks that occur as a result of taking every trade. System Betfair Trading is a “double edge sword.” It allows the trader to capture all the winning trades. However, it also ensures that she/he will be forced to endure the nasty losing streaks.
Despite the fact that the trader will experience occasional losing streaks, it’s still best for the novice investor to use a rules-based approach. This type of plan helps the trader develop the discipline to follow the rules on a consistent basis. It also promotes patience as the trader waits for the system to generate a winning trade.
A Combination of System and Discretionary Betfair Trading
A third style of Betfair Trading is a combination of system Betfair Trading and discretionary Betfair Trading. This type of approach involves a rules-based system. However, it allows the trader to decide which markets to trade. Once the markets have been selected, a rules-based approach is used to trade the markets. Betfair Trading in this manner would fall under the category of short-term swing Betfair Trading or long-term position Betfair Trading.
Many experienced investors prefer using a combination of system Betfair Trading and discretionary Betfair Trading. Why? Because they feel that they have enough experience to select which markets will produce the greatest amount of volatility.
In order to accumulate consistent profits, it’s very important to trade markets that have a tendency to exhibit large price movements in a relatively short period of time.
For novice Betfair Traders who don’t have the experience to select specific markets, the best course of action is to choose a small group of markets to trade using a rules-based approach. By selecting three to five different markets, it increases the likelihood that one of the markets will have enough volatility to generate a consistent rate of return.
It only takes one volatile market (within a small group of markets) to allow a trader to capture a nice rate of return over an extended period of time. Very often, novice Betfair Traders will make the mistake of deciding to trade a single market for a long period of time. Betfair Trading a selected group of markets can be categorized as day Betfair Trading or position Betfair Trading. If you’re a novice trader, position Betfair Trading should be selected over day Betfair Trading.
Unfortunately, if the trader selects a market that is locked in a boring Betfair Trading range, it will be almost impossible to produce a profit. Markets that are stuck in a Betfair Trading range will not create enough price volatility to make any money. Therefore, it’s rarely a good idea to trade a single market for several months in a row.
Which Betfair Trading Style Should I Use?
It’s very important to select the appropriate Betfair Trading style. Most likely, it will determine your success or failure as a trader. Choosing the best Betfair Trading style should be based on your level of experience.
If you’re a novice trader, it’s certainly best to use a systematic approach. Using a rules-based system will help you develop the patience and discipline to follow a specific Betfair Trading plan for an extended period of time. However, it’s very important to trade in more than one market. At this stage of your career, trade diversification is a critical component of successful Betfair Trading.
If you have several years of Betfair Trading experience, using a discretionary approach is probably the best course of action. It will allow you to use your Betfair Trading experience to avoid some of the losing trades that inevitably occur with system Betfair Traders.
However, do not attempt to use a discretionary method unless you are highly confident in your ability to successfully identify some of the losing trades from a rules-based system.
Arguably, the best approach is to incorporate system Betfair Trading with discretionary Betfair Trading. If you have the ability to choose the appropriate markets to trade, your results will improve dramatically. But don’t attempt to use this type of approach unless you are extremely confident in your Betfair Trading skills.
In regard to cryptocurrency Betfair Trading, I prefer the TRABOS method. TRABOS is classified as a position Betfair Trading system. Some Betfair Traders would classify TRABOS as a swing Betfair Trading method. However, it falls in the category of a trend-following system.
However, futures Betfair Trading works best when using a combination of rules-based Betfair Trading and discretionary Betfair Trading. More specifically, I only trade the markets that are on the verge of an important breakout.
Regardless of which Betfair Trading style you decide to use, the most important aspect of becoming a successful trader is patience and discipline.
You must have the discipline to follow your Betfair Trading approach on a consistent basis for an extended period of time. Digitex Futures can help you become a more successful trader by offering a state-of-the-art user interface and commission-free Betfair Trading. The crypto Betfair Trading community is waiting with anticipation for the launch of the Digitex Exchange in Q2.
Full Disclosure: I own DGTX.
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.
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