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Sports Arbitrage Trading – A Practical Minicourse – Part Three
How do I locate trees to trade?
There are 2 factors that identify an arbitrage trading opportunity
1. The event must have a limited number of possible outcomes
The event you are betting on should ideally have 2 or 3 possible outcomes.
For example, the event may be a headtohead competition, such as a tennis or snooker match, where only one player can win. Or you can consider a cricket or football match, where there are three possible outcomes, including a draw/draw.
There are exceptions, where arbs are available in events with more than three results, and they can be very lucrative, but you’ll find your most common arbs in events as described above.
2. There should be a suitable percentage margin in your favor
When starting out, it’s probably best to restrict your bets to opportunities that return 2.0% or more. This will allow you some margin for error as you’re learning, and any mistakes will likely result in an equilibrium situation where you’ll just have to sacrifice your profits.
However, as you grow in experience, you will be able to consider ALL situations, including the thousands of 1%2% opportunities that occur each month. While the juicier 8%15% trees that appear a few times a week will give you wonderful bonuses, the smaller and much more frequent ones will constantly add to your bottom line.
So – that’s it. Find the event, do the math, place the bets and get a guaranteed profit regardless of the outcome. Once you’ve streamlined your processes, it couldn’t be much simpler.
The skill is finding suitable events to bet on. You can learn more about this below.
There are many arbitrage producing events available, but at the end there is a short list of the ones we recommend you check out.
 TENNIS
With only two possible outcomes, this is the ideal event. The darker the tournament, the greater the chance of finding profitable differences of opinion among sportsbooks. A large proportion of the listed bookmakers regularly offer prices on all tennis matches. You are likely to find a significant number of tennis bets.  SNOOKER
Again, with only two possible outcomes, snooker is an ideal event to look for arbitrage opportunities, although stakes can sometimes be limited to a few hundred pounds.
 CRICKET
Oneday matches allow only two results, while the winter tour also allows a draw. Cricket seems to be a soft spot for many bookmakers; a fact that often results in large percentages of arbs.
 FOOTBALL USA
Divisional championships can produce some lucrative arbs. After a few games have been played, very large discrepancies can arise between sportsbooks. It is also often the case that American odds compilers take a completely different view than their European counterparts, which creates more opportunities for arbitrage.  GOLF
Golf produces a large number of arbs each week in 18hole 2ball and 3ball matches, as well as 72hole matches. Also, in matchplay events such as the Dunhill Cup and the World Matchplay Championship, contestants are paired and can only win or lose. The markets for these events can be quite volatile and produce a lot of bulls.  FOOTBALL
European matches are worth keeping an eye on every week during the football season as they can produce some lucrative opportunities. One of the advantages of football betting compared to many other sports is the very large size of bets that bookmakers will accept. Watch out for arbs not only in the usual home, away, draw markets, but also in the Asian Handicap and Total Goals market  POLITICS AND ENTERTAINMENT
Whether it’s the next President of the United States or the next person to leave Big Brother, if there’s room for disagreement among the odds compilers, there’s room for arbitrage. Very large margins can be made on these nonsporting events because the bookies have to guess much more than in sports.  OTHER SPORTS When looking for riskfree profits, you should also consider
 boxing
 basketball
 baseball
 hockey
 ice hockey
If you search for arbs manually, you should be prepared to spend a lot of time and effort searching individual bookmaker sites and odds comparison sites to find prices. This can be rewarding in some cases, but it makes much more sense to use software to perform this task, as it is much faster and will allow you to do other things.
So, now that you know what to look for, let’s take a look at how software at the top end of the market will help you…

INCREASE IN PROFITS
There is no doubt that if you use your sports arbitrage software correctly you will make much higher profits than without. In addition to finding arbitrage trades automatically, it should also locate intermediate trades and even alert you to trades that you can use to cash out any bonuses you have pending with your bookies. 
TIME SAVED
Using the software will help save a lot of time. If you can trust the software to do the searching for you, it will allow you to search elsewhere or do other things. 
INFORMATION FOR OTHER OFFICES
This is a very overlooked benefit, but it is something that almost all professional traders use. When the software alerts you to an arbitrage trade, it very often offers suggestions about other possible trades. For example, a football arbitrage trade may contain a price that you can use in a betting exchange strategy instead of the arbitrage trade you have been notified of. The key issue is that software will get your attention faster than any other research method. Your sports arbitrage software should also allow you to choose to receive trades at the breakeven point, i.e. those where the prices add up to 100% and this can be used to great effect when using hunting techniques of bonuses 
EARLY WARNING FOR PRICE RELEASES
The best sports arbitrage software allows you to be the first to know when a bookmaker has posted new prices on the site. This early warning system can be of great advantage in trading strategies that require you to analyze new prices as soon as possible. 
USEFUL STATISTICS
With the vast amount of data it has access to, your software should be able to provide you with very useful insights. It should be able to show you how many arbs each bookie has had in each sport each month. This is extremely powerful for research as it allows you to see exactly which accounts are the most important each month. Many professional traders use this type of analysis to decide where to place their readytotrade funds each month.
In my next article, we’ll look at what we can do to minimize the impact of transaction fees when trading…
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