Having the best Ratings Algorithm is so SO important. Let’s consider the following scenario; Ratings provider has A 26% strike rate (accuracy at predicting the winner) costs £15 per month, Ratings provider B a 27% strike rate but costs £30 per month. Which is better value? If you went for option A, I am afraid you have become a victim of ‘false economy’ – it seems cheaper, but ultimately costs you more in the long run. A 1% difference is 130 extra winners for Ratings Service B over the course of a year. It can make the difference between landing that £100,000 multiple and not. Every 1% in ratings accuracy is increasingly difficult to get.
The counter to “Accuracy Is King” would be “Value is King” however you can not determine value without accuracy! In other word’s accuracy of ratings model gives you the tools to infer when there is and isn’t value!