As to Testa's question on whether betting in the red is clever or not - it depends on the number of runners in the race.
$1.60 is a fraction better than 4/7. If you take that bet with a bookie in a 12 horse race, it's equivalent to giving him 11 runners, all at 7/4 each and you have just one at 4/7. I don't like doing it 'cause too many odds on pops get beaten. There was a famous Syney punter in the 60's called the Fireman, whose specialty was large bets on odds on horses, especially St. Louis Blues. He only lasted about 2 seasons before the odds ground him down.
Try betting in the red on the footy (NRL or AFL) - at least it's only a two horse race! And the bookies margin is usually only about 10%.