BetonMarkets Systems Part 3: Working the System

We will wrap up our discussion on BetonMarkets systems by talking about working the system itself. We touched on this briefly in part two of this article. I want you to develop the mindset of a successful bookie. Bookies are always getting good odds on their positions and managing their risk with hedging strategies. Bookies always make money.

What I am saying is that you need to be more attached to getting good odds on your bet than you are about your opinion of likely market direction. As a matter of fact when a lot of traders are betting the same way in a market, sometimes the odds get skewed to try and attract action the other way. If you are on the BetonMarkets mailing list you might even get an email from them alerting you to these opportunities. When you get one of those emails you should seriously check out the offers.

Because so many traders are trend-followers, a very obvious setup will often be unplayable because the odds that the wager is offering are just terrible. In these cases you should price out bets against the obvious trade and jump on them if the pricing is better than normal. This is especially true if the trend is well-established and getting old. The longer a trend is in place the better the odds of it breaking, and with amateur traders all getting on board at the latest pullback a smart BOM player will often fade them and start to bet that the trend will break.

You can only do this effectively if you are actively pricing out wagers all the time. Arm yourself with a spreadsheet, an options chain for the markets you are interested in, and the data available on the BOM website which shows where the volume is going in their most popular contracts. This is known as the average positions page and it shows the general public consensus in the various markets. Look for very bullish or very bearish ratings for expected market direction and get in the habit of hunting for value by pricing out wagers betting against public opinion. They don't know where the market is going any more than you do - take the good odds when you can find it.

BetonMarkets is always changing their resources pages around, but they usually provide some pretty good tools. At the time of this writing there are some bet pricing browsers that will make scanning for good value a bit easier. At one time they were offering a Public Orders page where traders offered positions between themselves - too bad they took that down because you could really finagle some good pricing there sometimes. Here's hoping they bring that back.

The BOM pricing model is supposed to be based on options pricing. However they will skew the pricing sometimes for their own reasons, and when this happens you can sometimes find arbitrage opportunities using options. This is a more sophisticated strategy that requires an options trading account at a futures broker. It is basically a hedged position which incurs no risk on your part (or very little) but has a decent potential payout if the right scenario unfolds.

If you soak up the wisdom presented on this website, you should have no problems developing profitable BetonMarkets systems for the strategy you want to pursue. If you would like to see more specific systems supported by rules with entry examples on charts, we would highly recommend the ebook Beat BetonMarkets. Best of good fortune to you.

Disclaimer: The information on this website is for entertainment purposes only and is not to be taken as financial advice. Always consult your professional financial advisor before undertaking any investment or trading plan. In some jurisdictions financial betting at BetonMarkets.com might be considered online gambling and therefore be deemed illegal, so check with your local laws first. There is risk associated with trading or financial betting and you can lose money. Proceed at your own risk.

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