Modeling Concepts & Terms

Understanding the models and techniques used for predictions.

Model Types Continuous vs Discrete Ensemble Elo System Evaluation

Model Types

Averages & Trends

Simple Average

The arithmetic mean of historical values. Stable but doesn't account for recency or trends. Best for stats that remain consistent over time.

Weighted Moving Average (WMA)

Gives linearly increasing weight to recent games. Game 10 counts more than game 5. Captures trends while smoothing noise.

Exponential Weighted Average (EWA)

Weights decay exponentially—recent games have significantly more influence. The alpha parameter controls decay speed. Higher alpha = more reactive to recent performance.

Regression Models

Linear Regression

Fits a straight line through data points to project the next value. Captures linear trends (improving or declining performance). Reports R² to show how well the line fits.

Polynomial Regression

Fits curves instead of straight lines. Can capture non-linear patterns like hot streaks or slumps. More flexible but can overfit small samples.

Ridge Regression

Linear regression with L2 regularization. Penalizes extreme coefficients to prevent overfitting. More stable predictions when features are correlated.

Lasso Regression

Uses L1 regularization which can zero out unimportant features entirely. Good for feature selection—tells you which stats actually matter.

Machine Learning Models

Random Forest

Builds multiple decision trees and averages their predictions. Handles non-linear relationships and interactions between features. Robust to outliers.

XGBoost

Gradient boosting algorithm that builds trees sequentially, each correcting the errors of previous ones. Often the most accurate but slowest to train.

LSTM (Long Short-Term Memory)

Neural network designed for sequences. Can learn complex patterns in time series data. Requires more data to train effectively but captures dependencies that simpler models miss.

Probability Models

CDF (Cumulative Distribution Function)

Models the full probability distribution of outcomes. Tells you "there's a 75% chance they score over 25 points." Useful for evaluating over/under lines at any threshold.

Logistic Win Probability

Predicts win/loss probability using logistic regression on performance features. Outputs a probability (0.65 = 65% chance to win) rather than a point total.

Continuous vs Discrete Predictions

Continuous Predictions

Predict actual numeric values: "Team will score 108.5 points" or "Player will have 24.3 points." Most regression models produce continuous outputs. Compare directly against betting lines.

Discrete Predictions

Predict categories or outcomes: win/loss, over/under, cover/not cover. Classifier models (logistic, Elo) work in discrete mode. Output probabilities rather than raw numbers.

Pseudo-Score

When discrete models need to compare across teams, they convert probabilities to a 0-100 scale. Higher pseudo-score = stronger predicted performance. Lets you rank teams even when models don't output actual point projections.

Ensemble Modeling

Ensemble Average

Runs multiple models and averages their predictions. If linear says 105, ridge says 108, random forest says 103—ensemble outputs 105.3. Reduces variance from any single model's quirks.

Advanced Ensemble

Weights models based on their historical accuracy. A model that's been right more often gets more influence on the final prediction. Adapts over time as model performance changes.

Model Agreement

When multiple models predict similar values, there's higher confidence. Standard deviation across model predictions indicates agreement—low std means models agree.

Consensus

The average prediction across all selected models for a given stat. Used in backtesting to evaluate "what if I just followed the aggregate?"

Elo System & Modifiers

Elo Rating

A dynamic skill rating starting at 1500. Win against a strong team = big rating gain. Lose to a weak team = big rating drop. The difference between two teams' Elo predicts win probability.

K-Factor

Controls how much ratings change after each game. Higher K = more reactive to recent results. Lower K = more stable long-term ratings.

Home Advantage Modifier

Adds a bonus to the home team's effective Elo when calculating win probability. Accounts for crowd, travel, familiarity with court/field.

Margin of Victory Modifier

Adjusts rating changes based on how much a team won by. A 20-point blowout moves ratings more than a 2-point squeaker. Capped to prevent outliers from distorting ratings.

Rest Days Modifier

Accounts for fatigue. Teams on back-to-backs or short rest get a slight penalty. Well-rested teams get a small boost.

Recency Decay Modifier

Recent games impact the rating change calculation more than older games. Prevents early-season results from having outsized influence late in the year.

Elo Difference Filter

Only bet when the Elo gap is within a specified range. Example: only bet favorites when their Elo edge is 50-150 points—enough to be confident, not so much that the line is juiced.

Evaluation & Analysis

Backtesting

Simulates predictions on historical games as if you didn't know the outcome. Runs the model at each point in time using only data available before that game. The only honest way to evaluate a model.

Closing Line Value (CLV)

Compares your bet to the closing line. If you bet -3 and it closes at -5, you got +2 points of value. Consistently beating closing lines predicts long-term profit better than win rate.

R² (R-Squared)

Measures how well a regression model fits the data. R²=0.8 means the model explains 80% of the variance. Higher is better, but beware overfitting—a perfect fit on training data often fails on new data.

RMSE (Root Mean Square Error)

Average prediction error in the same units as the target. RMSE of 8 for points means predictions are off by about 8 points on average. Lower is better.

Confidence Interval

Range where the true value likely falls. "Prediction: 105 (95% CI: 98-112)" means we're 95% confident the actual result will be between 98 and 112.

Sample Size

Number of games used to train the model. More data = more reliable predictions. Be skeptical of models trained on fewer than 10-15 games.

+EV (Positive Expected Value)

When your model's implied probability exceeds what the odds suggest. If you predict 55% win probability but odds imply 48%, that's +EV. Consistently finding +EV bets is the goal.

Lookback Window

How many past games the model considers. Short windows (5-10 games) capture current form. Longer windows (20+ games) capture true skill. The right window depends on what you're predicting.