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View Full Version : Which pool is more efficient?


ryesteve
08-09-2006, 07:07 PM
This is something that has me wondering: when there is a wide discrepancy in the odds between the win pool and odds lines in the matchups at Pinnacle and Betcris, which one would you think would tend to be the accurate one? On the one hand, the win pool has more money in it (most likely) but the matchup lines are the product of bets placed by people who are presumably more savvy than the average player betting into the win pool. Then again, the win pool respresents a wide cross-section of opinions, whereas the matchup lines might be the product of a very small group of people (or in an extreme case, a single individual) with a very strong opinion.

Take the following example: the ML odds of two horses in a matchup are 4-1 and 8-1. When the line is first posted, the line is -182/+166, which is typical for what you'd see with this kind of ML discrepancy. However, the 8-1 horse starts taking money immediately. By the late evening, it's down to +130. By the next morning, +110. By mid-morning, he's now the matchup favorite at -120. By the afternoon, he's -145... and by the time the betting is about to close, he's -172. Now, there's a good chance that this is just an example of a criminally incompetent morning line; however, let's say that by looking at the exotic will-pays into this race, you can deduce that these two horses really will be bet in accordance with their morning line odds.

So, it's clear that at least one set of odds is very far off. So what do you do? Your options would be:

1) Figure that the 4-1 horse represents a fantastic overlay in the matchup, and bet it enthusiastically.

2) Figure that the deluge of money on the 8-1 horse represents information you wouldn't otherwise have that indicates the 8-1 shot is very live, or the 4-1 shot is very dead, or both. So you enthusiastically pound the 8-1 shot in the straight pool, and hook it up with everything but the 4-1 shot in the exotics.

3) Assume the truth lies somewhere in the middle, assume both opportunities represent an overlay, and bet accordingly.

4) Screw "value" and just follow the money trail and bet the 8-1 horse in the matchup.

5) Keep your money in your pocket. Something about this race smells really weird.

classhandicapper
08-09-2006, 07:32 PM
I don't know much about match up betting, but sometimes the probability of a particular horse winning is not perfectly correlated with it's chances of running well or beating another horse.

You could have a situation where two horses both have a 25% of winning, but one of them is much more likely to at least run well if it doesn't win. The one more likely to run well would be a big favorite to beat the other even though they would both be 3-1 to win.

An example of this might be a layoff horse, a horse that needs the lead to run well etc....

ryesteve
08-09-2006, 07:41 PM
I don't know much about match up betting, but sometimes the probability of a particular horse winning is not perfectly correlated with it's chances of running well or beating another horse.
Good point... the typical situation would be where one horse is a suck-up grinder that will at best finish third or fourth, and the other is a speed horse that might either get loose and win or get cooked and finish last... in that case, the suck-up horse would go off at the longer win pool price, but he could very well be the matchup favorite. But for argument's sake, let's say that's not the issue here.

classhandicapper
08-09-2006, 08:16 PM
I really have no idea what that would mean.

If I was trying to exploit that kind of thing I might try to construct a bet playing both in different pools if the discrepancy was large enough. Perhaps I would weigh it slightly towards my own views on the values.

The best solution is probably to track it on paper for awhile and see if there's any money to be made.

Overlay
08-11-2006, 05:07 AM
Under the conditions you describe (especially if, as you stipulate, any potential effect of a difference in running styles can be disregarded), I would back the 4-1 horse in the matchup. I think if the 8-1 horse were truly live, it would be getting more action in the win pool, which I would consider the more efficient of the two.