March 4, 2010

Thin market so thin profit


Not so much happening in the Tennis world with the Monterrey Open being the only tournament broadcasted and volumed by the market during this week until Friday when Davis Cup is starting.

As you can expect from the headline, the profit line doesn't look sweet lately as the markets are simply horrible for trading, except when one of the " big " names is involved during Monterrey Open. Big name I am considering around general ranking of 27 as Jankovic went out in first round already being seeded first and ranked 8 - typical low profile tournament which actually nobody even cares about.

I noticed the markets being horrible, although around 400k were matched during in-play and around 150k before going in-play. Don't remember exactly which fixture it was, but I remember a scenario of the following prices ( written 3 prices back, 3 prices lay ):

1.35 - 1.40 - 1.67 | 1.75 - 1.99 - 3.00

Now as a general rule, you will read in other blogs and services as soon as 100k are matched before going in-play the games are pretty much suitable for trading. I am totally different about this as in big tournaments this rule might be right, as in the first 10 minutes you can expect at least 50k to be matched and good market movement but not here. One more note here was that the back volume for 1.67 was a couple of hundred Euros only so nothing really worth while all other positions where not even close to a 500 Euro mark.

Now let's go through the following scenario:

You back the receiver at 0-0 in a game and even if it goes like 0-15 or even 0-30 you will notice that you will be almost unable to trade out ( assuming using stakes higher than 100 Euro or so ) pretty much sure about this.I was in that position in the Pavlushenkova vs Tatishvilli game for quite long which also caused the loss, as server went 0-15 and I wasn't able to trade out until 30-15 with a loss of around 10%. The crazy thing about this fixture was that there were orders in the market in a satisfying number but as soon as the game went 0-15 no chance to back or lay at reasonable prices as all offers were cancelled immediately.

One more thing I noticed was the poor scoreboard both on bet365 / bwin / even in TV transmittion. Only way to really trade fast and react quick was to watch and hear the umpire as almost every fifth point was shown wrong by one of the mentioned scoreboards.

All in all I am really waiting for the Davis Cup to kick off and get finally some volume in markets again and there are a lot of interesting fixtures in the event. Indian Wells Paribas Open are starting on 11 for ATP and 10 for WTA so after Davis Cup first round finishing 7th again two days of break until satisfying markets will be available. Miami is following just 3 days later and as both are hard courts and are top seeded due to being Masters 1k events I think month will end pretty profitable again. So far.

About Me

YellowTrader
I am a 22 years old Tennis trader who is working for a professional sport trading company in Germany. Right now I am trading with a max liability of 500 Euro and will post my results as regularly as I can in here and write some (hopefully) helpful advices for tennis trading beginners.
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