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Poseidon Trader’s Approach – rules of the game
If I was to summarize the approach in one sentence, I would say that it is based on the following rule:
Attack all prices that are wrong, get the volume of trades in and let the mathematical edge play out over a large sample
Here are some key concepts:
- treat football teams as companies and betting exchange as stock exchange,
- don’t try to predict the market, concentrate on what the market is telling you about the teams and decide whether you agree or not,
- nobody knows the exact price of anything. Not of a team, not of a house, etc. Price is arbitrary influenced by emotions and not fundamental,
- the market will always provide you with the following information: a) Team A > Team B b) Team A = Team B c) Team A < Team B,
- from this information your only job is to try to figure out which information is wrong. So out of 3 options you only have to choose 1 that is wrong,
- the market should reflect the value between both teams. Something that has the same value, for example, should have the same price,
- whenever the market is transmitting the wrong information you know you have an opportunity to enter the market with value,
- you don’t have to worry about Draw odds and Home/Away factor
- treat football teams as car brands (Ferrari, Mercedes, Toyota, Citroen) group them and compare. If Ferrari odds are higher than Toyota odds, the market may be transmitting wrong information and that may be an opportunity for you!