Sports Betting Models
Quantifying edges is necessary for leveling up as a sports bettor. Building a betting model can be the difference between consistent profits and losses. Building and refining a predictive model based on data allows bettors to gain an edge by making smarter, data-driven decisions.
This article will introduce the basics of betting models, explain how to use publicly available data to create your own lines, and highlight the importance of adjusting your models as new information comes in. Additionally, we’ll show you how to use tools like Excel, Python, and third-party software to help you automate your data collection and model-building process.
What is a Betting Model?
A betting model is a statistical tool used to predict the outcomes of sporting events. It uses historical data, team stats, player performance, and other factors to generate predictions. A betting model allows you to compare the implied probability from odds with the true probability based on your own analysis. This helps you identify value bets and improve your betting decisions.
Why Betting Models Matter:
Data-Driven Decisions: Instead of betting based on gut feelings or popular opinions, a betting model uses objective data to inform your choices. This leads to more accurate predictions and higher profitability in the long run.
Quantifying the Unknowns: While sports betting will always have an element of randomness, a good model can reduce the impact of variance by providing more accurate predictions and a clearer view of the probabilities.
Example: A betting model for football might use team stats such as passing efficiency, turnover differential, and defensive performance to predict the point spread.
How to Use Publicly Available Data to Create Your Own Lines
Publicly available data is the backbone for sports bettors, allowing you to build your own betting lines. Sportsbooks rely on data just like you, so using that data allows you to spot inefficiencies and bet on mispriced lines. Key data sources include advanced team stats, player performance, and external factors like weather or injuries.
How to Use Public Data:
Historical Data: Collect data from public sources like ESPN, Basketball Reference, and NFL Stats to track team and player performance over time. This data will form the basis of your model.
Statistical Models: Use your gathered data to build models that predict outcomes based on variables like offensive efficiency, defensive strength, and team matchups.
External Factors: Don’t forget to factor in injuries, weather, and team schedules. These often affect a team's performance but can be overlooked by sportsbooks if spotted early enough.
Example: Using data from Baseball Reference, you can track a pitcher’s advanced metrics to build a model to predict how he’ll perform against a particular team. This is the basis of modeling.
The Importance of Priors & Adjusting Models Over Time
In betting models, priors refer to initial assumptions or historical data that provide the starting point for predictions. As new information (such as injuries or team changes) becomes available, it’s essential to adjust your model to reflect the updated data. Failing to update your priors could lead to inaccurate predictions and missed opportunities.
Why Priors Matter:
Initial Assumptions: Priors serve as the baseline for your predictions. For example, you may assume that Team A has a 70% chance of winning based on their historical performance.
Updating Priors: As the season progresses and new data comes in, you can adjust your priors to reflect changes in team performance or external factors (e.g., injuries, trades, weather).
Example: You may start the season with the assumption that Team A is a strong contender based on last year’s performance. However, if they suffer key injuries or change their coaching staff, you’ll need to adjust your priors to reflect these changes, ensuring that your model remains accurate.
Using Excel, Python, & Third-Party Tools for Predictive Betting
Building a betting model doesn’t require complex software or vast programming knowledge, but tools like Excel, Python, and third-party software can help you take your model to the next level. These tools can automate data collection, build statistical models, and track betting performance.
Using Excel for Betting Models:
Excel is a great starting point for organizing data, building basic models, and performing simple statistical analysis. You can use pivot tables, graphs, and built-in functions to track your betting performance and make data-driven predictions.
Using Python for Sports Betting:
Python offers advanced capabilities for data analysis. You can create complex models, run simulations, and perform in-depth analysis using libraries like Pandas and NumPy. Python is great for bettors looking to take their models to the next level.
Third-Party Tools:
Tools like RotoGrinders, Betfair, and SportsRadar provide real-time data and odds comparisons. These tools can help you track line movements and refine your betting strategy.
Example: You can use Python to pull team stats, calculate expected values, and run simulations to predict the point spread for NBA games. Tools like Excel can help you organize the data and perform basic calculations on player performance.
