Many traders have their techniques and method of placing their lay bet or back bet with this strategy, however, the biggest problem comes when it is time to exit the market.
Having a proper lay the draw exit strategy is underrated and not spoken of enough in this trading industry.
However, count yourself lucky because today is your day!
This article would put you through all you need to properly exit the draw and maximise profits. Read on and enjoy!
How Does Laying the Draw Exit Strategy Work?
There is a lot that goes into lay the draw exit that most traders don’t consider. The most significant thing is your risk to reward ratio.
Before exiting trades, is your risk-reward good enough to pull you through losing trades? If for every £1 you risk, you win £3 then your risk to reward ratio is 1:3.
With a risk to reward of 1:3, in a sample of ten random trades, you could lose six, win four and still be in profit.
That is the power of risk to reward and it is the number one thing to consider before you implement the LTD exit strategy.
The goal is not to profit from one trade but over a series of trades.
For a simple approach, when you lay the draw, you could cash out your profits immediately when the favourite team scores a goal.
Beginners do it often because it is easy and you make quick profits. However, the profits are not much and the risk to reward is not favourable in the long run.
A more profitable strategy to invest in is to laying the draw till the favourite team goes two goals up. Not only will you see more profits but a better risk to reward.
However, many traders get greedy with this exit system because if a team can be two goals up, why not hold the trade for one more goal or till the end of the game? Discipline is key in this instance.
The next question becomes what if the match has no goals.
How about games that end in goalless draws? How do you deal with such loss? There are two ways around it.
The first is to determine a point to always close goalless draws. Most lay the draw traders close out such trades between 70 to 75 minutes or if the odds come around 2.0. You will take a small loss but it is worth it.
However, what if a late goal comes?
Statistically, a large percentage of football goals come late in the game. Closing out a trade in loss only to get a late goal can be quite painful.
So, you could opt to risk it all by holding the trade. If you are doing so, then you must be ready to withstand the loss.
On the bright side, there is also a high winning probability; seems fair enough.
Some of the Best LTD Exit Strategy Exampless
It is quite easy to describe most strategies on paper but implementing them becomes a problem.
With these few examples that we would lay down, you will get a better grasp of lay the draw exit strategy.
In a match between Manchester City and Norwich, Manchester City is a strong favourite. The tendency of getting goals is high and this is a great game to laying the draw.
After placing the trade and the game commences, the favourite gets a goal ten minutes into the game.
Closing such a trade is quite early and you are missing out on potentially bigger profits.
Manchester City is a strong favourite and winning the match is almost certain. The tendency for more goals is also highly probable.
Trades like this are worth letting it run; there is so much potential profit.
Even if the underdogs get a goal, the favourites have a higher chance of winning with a huge goal difference. It’s worth the risk!
Tips for Strong Favourites
- Heavy favourites present the best opportunity to let your LTD trade run.
- Don’t close out too early.
- If the favourites get an early goal but have a significant drop in performance then you could consider cashing out.
The second instance is games with closer opponents. A match between Chelsea and Manchester United is a closer example.
Such games put lay the draw traders on the edge of their seats. In this scenario, a fast exit is the most advisable option because the game could go either way.
If Chelsea gets a goal in the middle of the game, this is not a time to wait for more goals.
Being a close game, there is a high tendency of Manchester United to score an equalizer. Such games demand that you play it safe.
Tips for Strong Favourites
- Cash out early enough when you are in profits
- If the match remains in a draw then you could close the trade around 70-75 minutes in a small loss. You could also monitor the odds and close when it is around 2.0.
The previous examples highlight how you handle winning positions. How about when things are not going your way?
In sports trading, you will not win all the time so you should be prepared for some losses.
In a game between Liverpool and Burnley, Liverpool is favourite and you choose to lay the draw.
In the middle of the game, Burnley takes the lead; it makes the trade a little difficult to hold because Liverpool has a high chance of getting an equaliser.
An instant exit is a better option in this scenario.
Tips for Strong Favourites
- Closing the trade in small loss or profit is better than in full loss.
- If you don’t have the mental capacity to let it run, close it.
Tips and Tricks From the Expert
Now you know the exit strategies for laying the draw in various scenarios; you may be eager to implement it but hold on a bit.
You will find the preceding tips and tricks very useful in contributing to your win rate in the Betfair exchange.
- If the risk to reward ratio is too small, let it go: No matter how good the game looks, if the risk to reward ratio is not profitable in the long run, it is better to let it go. You will surely find better trades to give you more precise lay the draw exits.
- Aggressiveness does not pay off in the long run: There is a temptation to follow the aggressive path while executing this strategy but it doesn’t pay off in the long run. If you continue to let every trade run when you shouldn’t, your losses will overshadow your wins.
- Plan out your pre-defined exit: For matches that don’t go your way, having a planned out exit will keep your emotions away. Always have the point at the back of your mind and stick to it.
Bottom Line: Should I use the Draw Exit Strategy?
With a strategy like this, long-term profitability is inevitable.
The strategy is a realistic one that doesn’t fail to emphasise the possibility of trades going against you.
It is one major thing lacking in most systems; they paint strategies as holy grails which do not exist in the industry.
If you are looking for a better way to exit the markets then there is no better recommendation than lay the draw exit strategy.
As long as you keep a good risk to reward, you will find yourself in net profit.