Page 3 - Buildingastrategy
P. 3
BUILDING A STRATEGY PART 2
SHORT TERM FLIPS
Trying to flip player's within a short period of time is arguably the toughest part
of football index trading. Win some, lose some is often the pattern but finding
consistency can be a real pain in the backside. With frequent analysis and a
proven strategy it's more than possible for a more win some, win some pattern.
Lyon forward Memphis Depay will be my example for this strategy and driving this trade
was the Lyon v Everton match on the 19/11/17.
Questions I ask myself when building a strategy to flip for a profit within a short period
Brief of strategy- What is the core desired outcome of the strategy? and when will you buy
the player and then sell the player? Always keep your brief short, simple and too the point
its the main goal to help deter confusion.
My Strategy brief with Memphis Depay was too benefit from the rise in price of players
playing in mid-week European fixtures, The aim is to enter the trade early before most
other traders and exit before the match starts.
Positive Market Patterns to observe-
Anything that supports the player purchase, and this is when some records and analysis
start to help. Positive patterns might be that the desired player is value price, or in similar
situation in the past (according to your records) the market reacted in a way that saw the
player rise in price.
My records had shown a consistent pattern with players playing midweek European
football especially the better teams, prices would move as early as the day after the
weekend football so I entered the trade with Depay on the Monday before his Thursday
fixture. I had records to further support this trade as forwards playing against opposition
who are perceived weak or struggling( Everton were at the time) would also see a rise
usually the day before match day.
Negative Market patterns to observe-
Anything that you might want to consider that might effect the strategy, It could be that the
player you are looking it is at his market high price, or from records you have noticed a
pattern resulting in a price drop that happens before your desired exit point has made the
trade more risky.
I had watched Depay on previous European fixture weeks and despite records of this
strategy working on many other players Depay's price did not move very much before
settling at his starting price that week commencing. Also noted that going in play with this
strategy on average resulted in a price drop, so exiting before the kick off was less risky and
the way I would play it.