Part 8 – Algorithm Components

Statistical handicapping selects and combines statistical analytics to quantify a team’s overall proficiency relative to its opponent. Common NFL elements are point, yardage and turnover differentials, yards per point, red zone and third down efficiency, time of possession, etc. Common NBA components are point, rebound, assist, free throw and turnover differentials, 2 and 3 point shooting percentage, points per possession, etc. These statistics are analyzed over a time period that best exhibits a team’s present level of performance. This is all good except for the fact that those mentioned statistics do not account for the most critical factor in quantifying a net rating. In addition to the mentioned statistics, the algorithm should factor in the NFL and NBA teams’ outright winning and losing tendencies. In short, outright long and short term winning percentages and winning and losing streaks should be an integral part of the algorithm in determining the net worth of a team.