LEARN / YOUR RESULTS ARE LYING TO YOU · 06

The Win Rate Lie

Tell me your win rate and you have told me almost nothing. I need to know what price you were getting.

Bettor A
65%
Win rate
Price
-300
ROI
-13.3%
$100 per bet · 500 bets
-$6,667
Bettor B
40%
Win rate
Price
+170
ROI
+8.0%
$100 per bet · 500 bets
+$4,000

Who had the better betting record?

The one who won 40% of his bets.

Because win rate is only half the equation.

Move the price. Move the bar.

You win
50.0%
You need
52.38%
-2.38 POINTS
Short of break-even
500 betsStake per bet
Total staked
$50,000
Expected P/L
-$2,273
Expected ROI
-4.55%

At this win rate and this average price, this is the mathematical expectation across 500 $100 bets.

Expected P/L over 500 bets
$0-$50,000+$50,0000%25%50%75%100%WIN RATEBREAK EVEN 52.4%YOU
-110
50.0%
Try these

The denominator matters.

When somebody says, “I win 65% of my bets,” the next question should be: at what odds?

At -300, you need to win 75% just to break even. At +170, you need only 37.04%.

The useful number is not your win rate by itself. It is the gap between your win rate and the rate your prices required.

Your target moves when the price moves.

There is an even faster way to judge whether your prices are good: compare them with the closing market.

Play Beat The Close →
A losing record can still make money

My NHL model went 200-205 across two tracked seasons and finished +30.76 units.

The record was below .500. The prices made the difference.

Price every NHL game before the market moves.

See the NHL model