Hi Bamthwok
I Love the appraisal of the scenario and your workings out are spot on. Interesting that you also that you prefer to adopt a value approach to you positions and press this when a horse is drifting.
Indeed my stats back this up. From the calculations you have done it would appear that the figure of 1.3 times the lay price taken has been omitted from the sums?
Below this figure the gambles that frequently take place show conclusively that leaving these un hedged is the route to the poor house, so much so that I adopted some time ago your suggestion of backing these steamers that were layed at bigger prices in addition to the hedge. However the ones that drift are the ones that really concern me for leaving un hedged.
The problem with excel calculating the profit and loss scenario for the category of the 1.3 times the lay price taken is that I cannot compare the hedged profit to the un hedged profit.
I have got all the BFSP prices, so to filter all the 1.3 and above lay price Versus BFSP is easy. Doing this for August and September reveals
1562 lay bets where the BFSP was at least 1.3 times the lay price taken
Of these just 83 went on to actually win the race at an average BFSP price of 24.4
The average price of all the lay bets of the winners was 11.9.
The winners horses unhedged took -£1477 from the bank meanwhile the un hedged lays that lost the race added +£2403 this left a profit of £925.00 (before commission) But how can you calculate the hedged profit or loss on this?
And here is the problem because you cannot highlight a column and get the average lay price and average BFSP and calculate profit and loss.
You can have a lay at 12 and a hedge at 24 three times and then a lay at 16 and a hedge at 4 just once and your average tells you are in profit. The average lay is 13 and average hedge is 19 hence on paper you make money. However this is not the case since £1 on each would give you 50p on the first 3 bets, but a £3 loss on the 4th bet. So each profit and loss for each bet need to be calculated separately, and with all the other bets in the spreadsheet and the problems of identifying which trigger fired which bet this is near on impossible to calculate en mass
Anyhow to answer your question re the stats from
BetFair I spent around 2 months
gathering these 1 day at a time for 2008,2009 and up till May 2010 until I finally lost the will to survive any longer. They do however show in running lows and highs. Hope that helps.
Thanks again for taking the trouble to reply to this thread and and your very helpful observations. I hope I come up with the definitive answer soon.
Cheers for now