Value Betting Explained

Value betting is not about "picking winners." It's about finding prices where the market probability appears lower than the true probability.

Step 1 — Convert odds into implied probability

Implied probability = 1 / odds. Example: Odds 2.50 → implied probability 40%.

Step 2 — Compare to model probability

If the model estimates 48% and the market implies 40%, the model sees an edge.

What "edge" means

Edge = Model probability − Implied probability. Not a guarantee. Can lose, often will in the short run.

Why most matches have no value

Markets are competitive and efficient. If you see value on everything, something is wrong.

Why tracking matters

Value betting only makes sense with large samples, transparent tracking, and consistent measurement. That's why PredictionPitch publishes performance openly.