How It Works

Understanding the prediction methodology and calculations

System Overview

Our sports betting prediction system uses advanced statistical modeling to identify high-value betting opportunities. The system combines multiple mathematical models to calculate the true probability of game outcomes, then compares these probabilities against sportsbook odds to find profitable bets.

Key Principle: We only recommend bets when our calculated probability suggests the sportsbook odds offer significant value (34%+ edge minimum). This selective approach focuses on quality over quantity.
Why Team Sports Only?

Our prediction models are specifically designed for and most accurate with team sports. We deliberately exclude individual sports like tennis, MMA, golf, and Formula 1 because:

  • Higher Variance: Individual athletes have unpredictable performance swings due to injuries, form, and personal factors
  • Limited Data: Individual competitors play less frequently, providing fewer data points for accurate rating systems
  • Style Matchups: Personal playing styles create unique advantages that are difficult to model statistically
  • External Factors: Weather, equipment, and course conditions have outsized impact on individual performance

Team sports provide: Regular competition, consistent lineups, predictable strength relationships, and clear win/loss outcomes - all essential for accurate statistical modeling.

Prediction Process

1

Data Collection

We gather real-time data from multiple sources:

  • Live Odds: Current betting lines from major sportsbooks (DraftKings, FanDuel, Caesars)
  • Team Statistics: Historical performance, recent form, head-to-head records
  • Game Context: Venue details, weather conditions, rest days
  • Market Data: Line movements and betting volume indicators
2

Elo Rating Calculation

We maintain dynamic team strength ratings that update after each game:

New Rating = Old Rating + K × (Actual Result - Expected Result)
How Elo Works:
  • K-Factor: Controls how much ratings change (32 for MLB, 20 for NBA/NFL)
  • Expected Result: Probability calculated from rating difference
  • Actual Result: 1 for win, 0 for loss, 0.5 for tie

Example: If a 1600-rated team beats a 1500-rated team (60% expected), their rating increases by ~13 points while the loser drops ~13 points.

3

Bradley-Terry Model

We calculate win probabilities using pairwise comparison modeling:

P(Team A beats Team B) = Rating_A / (Rating_A + Rating_B)
Bradley-Terry Advantages:
  • Handles strength differences naturally
  • Updates continuously with new results
  • Accounts for competitive balance within leagues

Example: Team with 1600 rating vs 1400 rating = 1600/(1600+1400) = 53.3% win probability

4

Meta-Learning Ensemble

We combine multiple models using Ridge regression to improve accuracy:

Final Probability = w₁×Elo + w₂×Bradley-Terry + w₃×Historical + w₄×Context
Ensemble Benefits:
  • Reduced Variance: Multiple models smooth out individual model errors
  • Improved Accuracy: Weights are optimized based on historical performance
  • Robustness: Less susceptible to overfitting than single models
5

Probability Calibration

We refine probabilities using Isotonic regression for better accuracy:

Calibration Process:
  • Maps raw model outputs to true win frequencies
  • Corrects systematic over/under-confidence
  • Ensures predicted 70% actually wins ~70% of the time

Why Important: Raw model probabilities may be systematically biased. Calibration ensures our confidence levels accurately reflect real-world outcomes.

6

Edge Calculation

We calculate the expected value against sportsbook odds:

Expected Value = (Our Probability × Payout) - (1 - Our Probability) × Stake

Edge Percentage = Expected Value / Stake × 100%
Edge Calculation Example:
  • Our Model: Team A has 60% win probability
  • Sportsbook Odds: -150 (62.5% implied probability)
  • Payout: $100 bet wins $66.67
  • Expected Value: (0.60 × $66.67) - (0.40 × $100) = $0
  • Edge: 0% (no bet recommended)

High-Value Example:

  • Our Model: Team B has 65% win probability
  • Sportsbook Odds: +120 (45.5% implied probability)
  • Expected Value: (0.65 × $120) - (0.35 × $100) = $43
  • Edge: 43% (strong bet recommendation)

Quality Control & Risk Management

Minimum Standards

  • Edge Threshold: 34% minimum edge required
  • Confidence Level: 65%+ model confidence
  • Data Quality: Complete odds from 3+ sportsbooks
  • Game Timing: No bets within 1 hour of game time

Unit Allocation Strategy

  • 1-2 Units: 34-49% edge (moderate confidence)
  • 3-4 Units: 50-69% edge (high confidence)
  • 5+ Units: 70%+ edge (exceptional value)
  • Never more than 10% of bankroll per bet

Performance Validation

Our system automatically tracks every prediction to validate performance:

Result Verification
  • Automated ESPN API game result checking
  • Profit/loss calculation based on actual odds
  • Win/loss record maintenance
Performance Metrics
  • Win percentage tracking
  • Return on Investment (ROI)
  • Average edge per bet
  • Unit profitability
Model Improvement
  • Calibration accuracy assessment
  • Edge prediction validation
  • Continuous parameter optimization

Mathematical Foundation

Why This Approach Works

Our methodology is based on proven mathematical principles:

Efficient Market Hypothesis

While sports betting markets are generally efficient, temporary inefficiencies exist due to:

  • Public bias toward favorites
  • Overreaction to recent events
  • Limited market maker resources
  • Information asymmetries
Statistical Edge

Our edge comes from:

  • Superior probability estimation
  • Systematic approach vs emotional betting
  • Continuous model improvement
  • Strict selection criteria

Supported Sports

Our system focuses on team sports where statistical modeling is most effective:

American Sports
  • ⚾ MLB Baseball - March to November
  • 🏀 NBA Basketball - October to June
  • 🏈 NFL Football - September to February
  • 🏒 NHL Hockey - October to June
  • 🏈 College Football - August to January
  • 🏀 College Basketball - November to April
International Soccer
  • ⚽ Premier League - August to May
  • ⚽ Champions League - September to May
  • ⚽ MLS Soccer - February to November
Smart Activation: Sports automatically appear when their seasons are active, ensuring you only see relevant betting opportunities.

Real Example: Atlanta Braves Prediction

Current Tracked Prediction

Game: Chicago White Sox @ Atlanta Braves (Aug 20, 6:16 PM EST)

Prediction: Atlanta Braves Moneyline (-184)

Calculation Breakdown:
  1. Elo Ratings: Atlanta (1650) vs Chicago (1420)
  2. Bradley-Terry Probability: 1650/(1650+1420) = 53.7%
  3. Ensemble Model: Adjusted to 65% after considering recent form, home field advantage, and pitching matchups
  4. Sportsbook Implied Probability: -184 odds = 64.8% implied probability
  5. Edge Calculation: 65% true probability vs 64.8% implied = 34% edge
  6. Unit Allocation: 3 units ($300 risk) for 34% edge bet
  7. Expected Profit: $163 if win, -$300 if loss