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Sports Arbitrage Trading – A Practical Minicourse – Part Three

How to locate arbs to trade?

There are 2 factors that identify an arbitrage trading opportunity

1. The event must have a limited number of possible outcomes

The event you are betting on should ideally have 2 or 3 possible outcomes.

For example, the event may be a one-on-one contest, such as a tennis or snooker match, where only one of the players can win. Or you can consider a match of cricket or football, where there are three possible outcomes, including a tie/draw.

There are exceptions, where arbs become available in events with more than three outcomes, and they can prove very lucrative, but you will find your most regular arbs in the events described above.

2. There should be an adequate percentage margin in your favor

When you’re just starting out, it’s probably best to limit your bets to opportunities that pay 2.0% or more. This will leave you room for error as you learn, and any mistakes will likely result in a break even situation where you may just have to sacrifice your profit.

However, as you gain experience, you will be able to handle ANY situation, including the THOUSANDS of 1% to 2% opportunities that arise each month. While the juicier 8%-15% arbs that appear a few times a week will give you wonderful bonuses, the smaller and more frequent ones will consistently add to your bottom line.

So that’s it. You find the event, do the calculations, place the bets and earn a guaranteed profit regardless of the outcome. Once you’ve streamlined your processes, it’s easy.

The skill is all about finding suitable events to bet on. You can learn more about it below.

There are many arbitrage generating events available, but on the reverse side is a short list of those that you are strongly recommended to check out.

  • TENNIS

    With only two possible outcomes, this is the perfect event. The darker the tournament, the better your chances of finding profitable differences of opinion between sportsbooks. A large part of the referenced bookmakers regularly offer prices on all tennis matches. You are likely to find a significant number of arbs in tennis.
  • BILLIARDS

    Again, with only two possible outcomes, snooker is an ideal event to look for arbitrage opportunities, although stakes can sometimes be limited by bookmakers to a few hundred pounds.
  • LOCUST

    One-day matches only allow two results while the winter tour also allows one draw. Cricket therefore seems to be a weak point for many bookmakers; a fact that often results in large percentages of arbs.
  • FOOTBALL

    Divisional championships can produce lucrative arbs. After a few games have been played, very large discrepancies between sportsbooks can arise. It is also often the case that North American odds compilers take a completely different view than their European counterparts, which creates more arbitrage opportunities.
  • GOLF

    The golf produces an abundance of arbs every week in the 18-hole 2- and 3-ball matchups as well as the 72-hole matchups. Additionally, in match play events such as the Dunhill Cup and the World Matchplay Championship, competitors are paired and can only win or lose. The markets for these events can be quite volatile and produce many arbs.
  • SOCCER

    It is worth keeping an eye on European matches every week during the football season as they can produce lucrative opportunities. One of the advantages of football betting over many other sports is the very large bet sizes that bookmakers will accept. watch out for arbs not only in the regular home, away, draw markets, but also in the Asian Handicap and Total Goals market
  • POLITICS & ENTERTAINMENT

    Whether it’s the next US president or the next person to leave Big Brother, if there’s room for disagreement between odds compilers, there’s potential for arbitrage. Very large margins can be won in these non-sporting events because bookmakers have to guess much more than in sports.
  • OTHER SPORTS When you’re on the lookout for risk-free profits, you should also consider

    1. boxing
    2. basketball
    3. baseball
    4. hockey
    5. ice Hockey

If you are going to search for arbs manually, you should be prepared to spend a lot of time and effort browsing individual bookmaker sites and odds comparison sites for prices. It can be rewarding in some cases, but it makes a lot more sense to use software to do this task because it’s much faster and will free you up to do other things.

So, now that you know what to look for, let’s see how the top-of-the-line software on the market will help you…

  • INCREASED BENEFITS
    There is no doubt that if you use your sports arbitrage software correctly, you will make much higher profits than without. In addition to automatically finding arbitrage trades for you, it should also locate intermediary trades and even alert on trades that you can use to pay out any bonuses you have pending with your bookmakers.
  • TIME SAVING
    Using the software will save you a lot of time. If you can rely on the software to do the search on your behalf, it frees you up to search other places or do other things.
  • TIPS FOR OTHER JOBS
    It’s a very overlooked advantage, but it’s something that almost all professional traders use. When the software notifies you of an arbitrage trade, it very often provides information about other possible trades. For example, a soccer arbitrage transaction may contain a price that you can use in a betting exchange strategy instead of the arbitrage transaction you were notified of. The key issue is that the software will bring this to your attention faster than any other search method. Your sports arbitrage software should also allow you to choose to receive break-even trades, i.e. those where prices add up to 100%, which can be put to good use when trading. use of bonus hunting techniques.
  • EARLY ALERT FOR PRICE COMMUNICATIONS
    The best sports arbitrage software lets you be the first to know when a bookmaker has posted new prices on the spot. This early warning system can be of great benefit in trading strategies that require you to analyze new prices as soon as possible.
  • USEFUL STATISTICS
    With the large amount of data it has access to, your software should be able to provide you with some very useful statistics. It should be able to show you how many arbs each bookie had in each sport each month. This is extremely powerful for research because it allows you to see exactly which accounts are the most important each month. Many professional traders use this type of analysis to decide where their funds should be placed, ready to trade each month.

In my next article, we’ll look at what we can do to minimize the impact of transaction fees when you trade…

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