The 16 trading strategies

What the strategy library is

HRT includes a library of 16 documented trading strategies, accessible at /trading/strategies. These are not signals, not tips, and not instructions to trade. They are structured descriptions of recurring market patterns in Betfair racing markets, written to help you recognise situations you may have encountered intuitively without having a vocabulary for them.

Each strategy article covers: what the pattern looks like in the order book, what conditions make it more or less reliable, the typical risk profile, and what structural signs suggest the pattern is playing out vs breaking down.

The library is a reference tool. Using it effectively requires combining your own market observation with the AI's live pattern-matching.

How the AI uses the strategy library

The Live Trade Thesis engine has access to the strategy library as part of its context. When it fires a thesis, it may reference specific strategy patterns — for example, identifying that current market microstructure resembles a Steam Scalp or a Pre-Off Compression. This gives you a structured framework to apply to what you are seeing.

The AI does not guarantee that a recognised pattern will complete as expected. It is identifying structural similarity, not predicting outcome.

The five strategy categories

The 16 strategies are grouped into five structural categories:

Steam — Strategies based on sudden, large-volume directional moves. Steam moves occur when significant money enters the market quickly, driving a runner's price sharply in one direction.

Fade — Strategies based on identifying overreactions in the order book — prices that have moved too far, too fast, and are likely to revert. Fade strategies involve trading against a recent sharp move.

Compression — Strategies based on the narrowing of the bid-offer spread as the off approaches. In compression patterns, prices consolidate within a tightening range before the final push.

Liquidity — Strategies focused on exploiting imbalances in available liquidity rather than directional price movement. These often involve positioning at price levels where large amounts of money are queued.

Scalp — Short-duration strategies focused on extracting small price increments from a fast, active market. Scalp strategies require high precision and fast execution.

Three example strategies

Steam Scalp

One of the most common pre-race patterns. A significant back order (or series of orders) hits the market and drives a runner's price sharply down over 5–15 price increments. Steam Scalp traders attempt to enter just behind the steam — backing just as the steam is arriving — and exit within a small price window as the initial momentum continues. High execution speed dependency; tight risk management essential.

Pre-Off Compression

In the final 5–8 minutes before the off, prices on well-traded runners often compress into a narrow range as opposing interests balance out. Pre-Off Compression strategies involve identifying this range and positioning at its boundaries, expecting the price to bounce within the range rather than break out. Works best in high-liquidity markets on prominent runners.

Spoof Fade

Spoof orders are large orders placed in the order book that are cancelled before matching — their purpose is to create the appearance of strong support or resistance at a price level, influencing where other traders position. A Spoof Fade strategy involves identifying probable spoof orders by their behaviour (placed and cancelled repeatedly without matching) and trading against the false impression they create. Requires careful observation and is not suitable for inexperienced traders.

Browsing the library

All 16 strategies are documented at /trading/strategies. Each has a difficulty rating, typical market conditions where it applies, and notes on risk. Reading through the library — even strategies you do not intend to use — builds your understanding of the full range of patterns that occur in these markets.