How we do it

Trading Strategy

How we strive to deliver a great return.

Targeting Hong Kong horse racing totalisator pools

The team at principle trading strategy is geared towards targeting and extracting the value that exists in the massive horse racing totalisator pools in Hong Kong.

Races per season

suitable for wagering

Average percentage of expected capital traded per race (Quinella)

Expected capital traded vs starting capital


Our strategies focus on the quinella and win pools which are the largest pools and hence provide the greatest opportunity for accumulative profit. The Hong Kong handicap is usually spread over a 20-pound range (~9.1 kg) from top weight to bottom weight thus allowing for multiple of runners as contenders.

In total there are ~810 races per season in Hong Kong. Our ability to identify the right races means that there are ~677 (83.58% of all races) that qualify as potential targets with those that pass the stringent filtering process resulting in ~417 races being suitable for wagering.


Our Quinella strategy has proven itself to deliver a race strike rate of 44%. This equates to an expected dividend of $2.27. This means that we will outlay on average 2.2% of the bank assigned to our Quinella strategy (which is 50% of total available capital available within each trade fund syndicate. The expected turnover of the capital dedicated to Quinella betting is therefore is 9.17x starting capital (per season).

Our win betting strategy means that we will be betting only on horses that meet our stringent win value targets. There could be several horses bet in a race that also qualify. Forecasting accurate turnover from this strategy is problematical so is not included in our forecast returns. It is anticipated though that the overall return from win betting will proportionally mirror that of the Quinella strategy after relevant rebates are accounted for.

Expected Trading Summary

Based on a full season

Total races run 810
Target races 677
Traded races 417
Average percentage of expected capital traded per race (Quinella) 2.2%
Expected capital traded 9.17x starting capital

Expected Trading Budget

Based on a full season

Expected minimum capital* $2,000,000 AUD*
Turnover $18,340,000 AUD (9.17x)
Expected Profit on Turnover 5.00% (includes rebates)
Expected Revenue $917,000 AUD
Expected Profit share expense** $183,400 (20%)
Expected Net Return $733,600 AUD
Expected ROC (return on capital) 36.68% per annum

*Includes capital contributed by us which will be a minimum of $250,000 in each trade fund syndicate conducted.

**Profit share expense is only charged on the basis that net positive revenue is achieved in any individual trade fund and is equal to twenty percent (20%) of actual revenue earnt in any individual trade fund/ syndicate.

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Postal Address: PO Box 323, Samford QLD 4520

Business Hours: 9am to 5pm AEST (UTC/GMT+10 hours)