Glossary:
What we've been anticipating and waiting to see (which happens in the regular cycles) is:
This is usually the perfect trifecta that leads to a big period of unders profit that we described last week. This may still happen, but for now as none of those 3 things are moving in that direction, and the change is something that the data hasn't seen before, we've deemed it sub-optimal to continue predicting and making tips that are using any data pre 17th Jan.
From Jan 26th:
Some of you may have noticed that the bet count (mainly on unders) has been through the roof over the weekend. This is due to a huge spike in average goals across the Battle tournament from 17th Jan onwards. Please see goals table:
We just wanted to reassure everyone that whenever there is a sharp increase or decrease in turnover it gets looked into in detail at our end to check that it's all part of an expected cycle. This instance has been looked into over the weekend and the model is performing as expected, with the explanation below.
Due to the significant spike in goals from the 17th Jan, Bet365 have increased their goal lines accordingly and the model is generating high value on unders across the board. This is because machine learning has taught the model that 'reverting back to the mean' outperforms 'following the spike' historically.
This particular spike is extreme and is still currently on the rise. It's likely that a patch update on the FIFA game they are playing on is the cause for this. In this scenario even minor updates to gameplay can cause these players (who play everyday as their job) to need an adjustment period to improve their defending post patch update. This is fairly normal and the backtest results factor in these sorts of changes and cycles.
What we anticipate to happen next (based on what's happened in the past) is that B365 will continue to increase their lines and the goals will start to revert back down to a new mean (once defending improves) which should fall under b365's new lines.
If you check the website, you will see that the model lost heavily on the 18th Jan. This is because B365 adjust more heavily to short term results than our model does (which is the foundation of how it makes profit - using a more effective balanced lens than just short term results). Despite goals still being on the rise since then, the model broke even on the 19th but is so far making loss again on the 20th (due to another big spike in goals - see attachment). The losing period correlates with a very extreme short term goals spike. It's unclear exactly where we are in this cycle - but it's rarely longer than a couple of days. The good news is that whilst goals continue to spike, B365 lines will continue to rise. The more extreme the spike. the higher the lines rise. The longer the spike and losing period, the longer the lines will stay inflated when the goals revert back to a new mean and the longer winning period should follow. Hence why the model always wins even in these volatile periods.
This follows historical cycles of a heavy losing day or two, followed by a period of breakeven (stabilising - our model adjusting to a big change moving in one direction vs b365 overreacting in the other direction) and this is often then followed by periods of heavy winning on the same selection (in this case unders).
This is because we anticipate: a) b365 lines will continue to rise too far as goals are still increasing currently, b) actual goals will revert back down to a new mean and c) our model will be perfectly placed to take advantage of both a and b happening simulataneously.
We thought it was important to explain this now, because we understand that new customers may be seeing lots of unders bets on games that are ending 7-4 and 5-5 etc causing a loss in confidence. The reality is though that history suggests that there could be a period of much heavier profit (on unders) to follow.
We would suggest keeping an eye on the website and the profit closely if you are betting at the moment. You won't go wrong continuing to follow every alert, but if you want to reduce volatility you could adjust stakes or volume based on the understanding of this losing->stabilising->winning cycle, of which we're in an extreme one right now and we believe somewhere between losing and stablising based on each player grouping (E.g the players who have already played a few days since the spike, lines are already getting too high. Other groups of players who played less over the weekend are spiking now).