Hi
I'm new to this and I don't know much about baseball, however I think I have come up with a MLB system which looks promising.
I read someone's thoughts somewhere that because teams play heaps of games against opponents in their own division, the underdogs have a better chance of winning than in non-divisional games since they get used to their opponent's playing style and can work out how to best beat them.
Step 1: let's see how divisional underdogs fare - p:division=op:division and line>-105
This gives us a 0.9% ROI from around 9500 games. This drops to a flat 0% since 2007, however it still indicates there is some bias towards the dog.
Step 2: bet the divisional underdog only if they're coming off a win (teams coming off a win are more confident and more likely to perform well in their next game) - p:division=op:division and line>-105 and p:W
OK now things start to look pretty good! 4.4% ROI from some 4300 games - a huge sample size! This drops to 2.3% from 3000 games since 2007, but still a really nice return from a solid number of bets.
Step 3: only bet the underdog if their opponent has a WP of less than 50%. My reasoning is we're getting plus odds against a team with a losing record - must be on the whole a good thing, right? p:division=op:division and line>-105 and p:W and o:WP<50
Now we have an ROI of 8.8% from 1549 bets! Since 2007 it's gone 9.0% ROI from 1046 bets. This system has been profitable every year since 2005 except for 2011 where it broke even.
Seems pretty good to me and I would love to hear what you guys think. Also, I don't think I have 'fitted' the data too much (if that's the right terminology) but can't be sure since I'm just starting out with this stuff - thoughts?