Repetitive Backing and Laying with Stop-Loss
This example is very similar to the previous one, except that it involves stop-loss options. It backs and lays on the favourite (if its price is less than 5.0) expecting to win a profit of 1.5% on each bet, but if the lay bet drifts away from the current odds by more than 10 ticks it'll get matched at the best available price to reduce possible losses. The betting is kept till 5 minutes before the off.
Post unmatched bets at best available prices:
• if the original price is no less than 11 ticks away from the current one
• if the time left till the off is less than 4.5 mins
See explanations to the previous trigger example. Why 1.015? Because in order to win 1.5% of the bet you must lay 101.5 % of the backed amount. It's better to offer an example.
Back £10 @ 3.0
To win 1.5% you must win £0.15.
Lay £10*1.015 @ 3.0/1.015 = Lay £10.15 @ 2.96
If back bet wins, you'll get £10*2 - £10.15*1.96 = £0.106
If lay bet wins, you'll get -£10 + £10.15 = £0.15
The amounts are not equal because 3.0/1.015 is actually 2.95, not 2.96, but we had to round the price to the nearest valid price increment. If it were 2.94, you would get £10*2 - £10.15*1.94 = £0.3 instead of £0.106.