Betfair Risk Management: Protect Your Trading Capital
Written by
Traderline Team
Risk management separates profitable traders from broke ones. You can have the best strategy in the world - without proper risk management, you'll still lose everything.
Risk Management Rules
- Never risk more than 5% per trade
- Track all trades to identify patterns
- Separate trading bankroll from personal funds
- Accept losses as part of the process
The 5% Rule
Never risk more than 5% of your bankroll on a single trade.
Why 5%?:
- Survive losing streaks (can lose 20 in a row and still have 60% left)
- Removes emotional pressure
- Allows strategy to play out long-term
You should only exceptionally bet more if you're an experienced trader on very particullar sports and situations
Stop-Loss Strategy
Set stop-loss BEFORE entering every trade.
For back-to-lay: Exit if odds drift 15-20% against you
For lay-to-back: Exit if odds shorten 15-20% against you
No exceptions: Hope is not a strategy
Bankroll Management
Separate trading funds from personal money:
- Dedicated Betfair account
- Only deposit what you can afford to lose
- Withdraw profits regularly
Pretend this money doesn't exist anymore and you'll have an easier time not being emotional about it
Position Sizing
Scale stakes with bankroll:
- Bankroll grows → increase stakes proportionally
- Bankroll shrinks → decrease stakes immediately
Common Risk Mistakes
Avoid These Errors
1. Revenge trading: Chasing losses with bigger stakes
2. No stop-loss: Hoping losing trades will recover
3. Risking too much: 10%+ per trade = recipe for disaster
4. Not tracking: Can't improve without data
5. Emotional decisions: Trading on tilt
Risk management isn't exciting, but it's essential. Protect your capital and you'll survive long enough to profit long-term.
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