We covered the basics of arbitrage the other day, today we are going to take it one step further by looking at some more advanced strategies, and looking in to what makes arbitrage not quite as fool-proof that some may think it is. Remember, the key to any strategy or system is first becoming an expert without putting any cash down, so learn as much as you can about arbitrage and then you’ll be able to make your own calculated choice as to whether or not it is ‘worth’ it.
We’ll start with the risks. There are a number of risks in using an arbitrage based system, but the most important ones are the following.
Sports book Rules. This is one of the most important risks of the system. Different books have different rule sets for what happens ‘if’ scenarios. For example: – what happens if the game is a draw? What happens if the game gets stopped? You need to ensure you do thorough research with all your books to ensure that you know what will happen. It may very well be an unavoidable risk, but if you know it is there, and what it is then you can account for it in your money-management system.
Sports book Mistakes - With the advent of online books, this isn’t quite as occurring as it once was. However, if it does happen chances are they have the right to cancel any bet at any time in order to protect their profits. So, if you see some odds that are just too good to be true, and you then take them – chances are if it’s a mistake, your bet will be cancelled. Running a single bet (non arbitrage system) this isn’t a problem, but when you are running two or more bets simultaneously, then you may very well find yourself in trouble.
Procrastination - Make no mistake ladies and gentlemen, this is not a system where you can plan your moves and execute them slowly. By all means there is plenty of time to plan, but you must be prepared to make the move and act quickly to make sure you don’t miss out on the proper odds or even miss the entire bet.
Human Error – We all make mistakes, and when you are running an arbitrage, you can’t afford to make any mistakes whatsoever. Make sure you take plenty of breaks and keep refreshed. Don’t run this system 12 hours a day 7 days a week because you will get tired and make mistakes. One mistake could kill a day’s worth of winnings, or heaven forbid even a week’s worth.
To keep up and with the system, you need to make sure that you are reading between the lines, understanding the odds, understanding the rules and understanding the bookmakers – as well as understanding yourself and the game. You need to spend time to learn the basics before you can successfully Arbitrage it is not as straightforward and sure-fire as it seems. Remember – just one mistake is all it takes to lose a lot of profit, and when you do – the only person you can blame is yourself sadly. Take the time to get acquainted with all you need to before trying arbitrage.
They are my risks with arbitrage, now how about some solutions ? What do we need to do to eliminate those risks ?
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