How to apply hedge fund strategy on betfair?

Question

Anybody know how to apply hedge fund strategy on betfair especially on the soccer and horse racing.

Answer 1

Find a horse that you think will drop in price. Say it is paying $8 then back it for 100. WHen it drops to say $5 lay it for 150. If it wins then you collect 800 from your first bet but fork out 750 for the 2nd (profit $50).

If it loses then you collect the 150 but lose your 100 bet (profit $50).

The trick is to back them high and lay them low.