How does the limit range filter work?
The limit range filter allows you to set a lower and upper bound for Pinnacle’s limit at the time of the alert. Pinnacle’s limit is the amount of money it will accept in bets on a particular market at a particular price. It is a proxy for Pinnacle’s confidence in the efficiency of the line.
Recommended limit range
We recommend you set your limit range to $100 - $1,000,000 if you are beginner. Taking into account turnover and market efficiency this is in our opinion the best range as long as you are betting with a margin of safety.
Effect on market efficiency
Pinnacle will progressively accept more and more money in bets as they get more and more confident that their price is right. The amount of money Pinnacle will accept in bets from any one bettor at a particular price is called the ‘limit’. Therefore we can get a good sense of Pinnacle’s confidence in a price based on their limit.
So we come to same question of whether we should be betting into low limit markets. I argued earlier that yes we should, as long as we apply the margin of safety principle with discipline so I won’t go over that argument again but I will say this; If you constrain yourself to high limit markets then your turnover will be massively inhibited for two reasons, 1) you’ll receive fewer alerts and 2) the soft bookmakers adjust to high limit market drops quicker as they often have higher limits themselves so need to be more price sensitive.
