You have spotted a horse race where you expect the favorite's fixed odds to drift hugely. You check the chart, you read the latest news, you examine the depth of market and they are all pointing into the same direction. The odds will DEFINATELY drift. So you lay.

Now, that was the easy part, the hard part is WHEN to back...

Riquewihr's odds drift a lot prior to the start of the race. Was it strange, was it expected, was it peculiar, was it some traders' game? Actually, we don't really care. What we do care about is when to close our position and exit the market if we had placed a lay at 5.0-6.0.

The truth is that there is not a 100% correct answer. Your trading strategy might imply that when you gain 10 ticks you should exit, other strategies tell you to let it run until 10 seconds before the off. Scalping would have forced you to exit soon and probably re-enter 2-5 times more gaining few ticks per trade. Another common belief is that when there is such a drift, the horse will lose, so don't back at all!

It really depends on your method and point of view. Nevertheless, it is trully a remarkable instance of making some money (or losing big if you happened to back first!!!).

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