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Luck versus Skill June 9, 2016

Posted by bluedevil32 in experience, social.
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On my drive home from work late this evening, I was listening to Wharton Moneyball Business XM. They had Michael Mauboussin on, author of The Success Equation: Untangling Skill and Luck in Business, Sports, and InvestingThe Success Equation: Untangling Skill and Luck in Business, Sports, and Investing. Fascinating stuff, discussing the difference between skill and luck, primarily how difficult it is for the human mind to differentiate the two. Humans tend to not just accept something that is, and something that may happen needs a cause or something that created it. There should be a reason for any given occurrence.

In trading or investing, we call some of these events “black swan events”. Companies and markets attempt to assess the risk of these events. Since they’re usually rare and unpredictable, it’s a tough thing to assess risk of something you may not know the cause / effect of at the time it occurs, let alone prior. So we assume that our skill and history will provide the outcome – likely incorrectly, or just by luck we may be correct.

Michael went on to discuss how in business there is a market for possibly being lucky. Using a trader who performed well as an example – recent studies show that it’s increasingly about chance/luck than skill in trading performance. However, if a trader outperforms, they could request a raise or use their performance as the expected amount to move to another company. Depending on the due diligence and statistical/skill assessment of the firms, this creates a market for production by luck.

In reading moneyball and the increasing sports analytics movement, they measure this against regression to the mean in a number of + stats. But in general, pros have a higher skill vs others, and the standard deviation, if you will, of said skills is much smaller. Minor nuances represent the differences in ‘higher’ skill than ‘lower’ at a professional level. A great year by an average pro could result in regression toward the career average. If this is not the case, then that player has probably found an efficiency level that could be affected by actions on their part to reduce the level of variance in that element.

I found the paradox of skill and luck explained very well. Typically, we see the two as a continuum – where on one end luck would play a part such as a roulette table or coins. On the other side, skill – maybe boxing, running. However, it seems to be more array/matrix-like, in that as you increase skill, you increase the dependence on luck. Separation at the most-skilled level involves all kinds of luck.

One author described it using Ted Williams’ .406 batting average in 1941. He had tremendous skill, ahead of most players in the professional leagues. However, that year, he also exhibited a tremendous amount of luck, again more than most players. That combination can attribute to some of the most heralded sporting feats. Our acknowledgement of those streaks come without luck – and that the players were just that skilled. Skilled yes, but also incredibly lucky.

Michael continued to go on about the statistics of lacrosse, and its rules are pulled from hockey and basketball. He noted that Canadian players in college lacrosse are extra efficient. Citing rules of box lacrosse (played usually on a hockey rink, much smaller in comparison to the field as is typical), they aim for smaller goals and have less space to work with. When they get on the field, the added space and larger goal sets them up to be monsters in shooting efficiency. Numbers-wise, 5% of D1 lax players are Canadian. Yet, they make up ~20% of the goals. Additionally, there was a 5% arbitrage between shooting accuracy – overall average was about 28%, non-Canadians shot 27.8% and Canadians? – nearly 33% of shots turned into goals. Astounding.

Statistical notes such as these create fascinating opportunities for further studies and team options, not just in sports but also in business. Taking note and then taking advantage will be easier with the increased abundance in acquiring data, but how much can we direct to noise, and how much is actually signal?

 

 

Fiduciary Standards – ’bout time April 8, 2016

Posted by bluedevil32 in finance, questions, social, Uncategorized.
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Well, it’s a start. The US has passed a law that is set to go into effect by, *drum roll, please!*, early-2018 for fiduciary (client’s best interest) standards for some 300,000 financial advisers who deal with retirement plans (401k’s, IRAs, Roths, etc…). So, come 2018, your adviser may now only legally act in your best interest and give objective advice on your options – you know, what lawyers and bank trust officers have had to do for decades.

Don’t hold your breath just yet, however. It seems that this will be fought, as appeals are thought to be in the works. Why would advisers want to act in your best interest if that doesn’t make them the most money?? Currently, advisers are only limited to giving advice on products/plans that fall into ‘appropriate age and risk-tolerance’.

So basically this means you cannot get straight sleazy sales – any adviser would have to produce all of the options and give an objective opinion on what would be the best – cost and plan-wise. How that will be determined is anyone’s guess since it’s their job to know all of the options. I do not expect someone that works and is an expert in their own field to also know about finances and everything that goes into them – which is all the more reason to make sure you vet the experience and practice of any adviser that you wish to go with.

The Time article that mentioned this article Fiduciary Standard approximated that it could save $17 billion for retirement investors. In a country that holds a dumb amount of debt in the form of student loans / credit card debt, this seems small (Trillions of debt vs billions saved), but it’s certainly not insignificant.

Something around 3-5% of people currently retired have more than $60k a year. I would hope that this action helps that poor statistic, and that in the near-future, with the amount of knowledge and technology available, that costs come down and everyone can either automate or receive the pointed help that they deserve.

Note: Licensed Life, Disability, LTC Insurance

Week 5 Quick Review & Week 6 Start October 14, 2015

Posted by bluedevil32 in Daily fantasy football, DFS, Draftkings, experience, FanDuel, NFL, Stacks, Week 5, Week 6.
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So, I’m going to keep this brief. I got way too ballsy this past week. Too many tournaments, too much risk, and not enough lineups to increase variation. I got slammed with wrong choices in having Demaryius / Julio in almost all line-ups. I got hurt by Lacy’s lack of pass-catching (and too much emphasis on home success for GB) & JC’s injury. TE & D/ST picks were bad, as well. Charles Clay didn’t do anything & Bennett was targeted 11 times but caught only 4 in what played out as an underperform. Jaguars got shellacked and the Giants, for whatever reason, created minimal pressure Sunday night. Well – that’s a lot of bad in spots that statistically should have been consistently high-floor.

So, the good? Rivers & Bell saved my ass Monday night so I didn’t get blanked. I wasn’t on ABrown due to Vick’s lack of rapport with him, which was good in a fade-case. Allen Robinson performed with Blake Bortles (who I was on in a few leagues). Rivers had a few good games. Brady/Edelman worked out after the 4th qtr touchdown but Gronk disappointed for how expensive he was. Dion Lewis was productive. I was not on Devonta Freeman and he continued to have a nice game. I also faded a good Doug Martin spot (suspect weather, minimal passing potentially). I figured that I would have scored with a few lineups in the high 140’s but I didn’t. Only one lineup hit 165+ and cashed on DK.


Week 6
I will try to do better – buckled down and read through more of Jonathan Bales’ series Fantasy Football for Smart People. Staying consistent with bankroll management and being diligent with a process weekly will be vital in success. To compile the statistics, I’ll likely use a trial for DailyFantasyNerd or Fantasy Labs to ensure I have the data in one spot. I could create a page for myself, but that will be fine-tuning what I want to use consistently.

So, let’s start with defenses. I read through Bill Barnwell of Grantland’s NFL Statistical Temperature. Without looking at this week’s schedule, I pared down defenses that I would be interested in playing, depending on home/away, weather, opponent, in no particular order.

Denver, Arizona, GB, NYJ (w/out a D TD so far) are the top tier. TEN, DET, NE, CIN, SEA, CAR would be the next, likely. PHI, MIN and ATL have been making plays but could be inconsistent depending on game flow.

RB’s – Forte, Foster, TJ Yeldon look good so far. Ryan Mathews has been productive. Do we continue to ride Devonta?
WR’s – Hopkins is just gobbling up targets for ppr leagues. AJ Green could be interesting – I feel like Dalton alternates between his receivers/tight ends. Just focuses in on them. EIfert was last week so Green could be this week. We cannot forget about TASER, Bryan Mears’ new statistic – anticipatory of red zone regression for touchdowns (potentially). Golden Tate, Amari Cooper, Demaryius Thomas & Keenan Allen headline it. Of those, I’d think Cooper & Golden Tate are most likely to score (Denver needs to get NEAR the red zone first and Keenan may be left out since Antonio is back). Let’s flip a coin between Hurns/Robinson again or play them both – that’s worked before. Snead on a Thursday night could be a fade position, or minimal play because of the cheap cost still. We all THINK it will be high-scoring… but will it on a Thursday with Julio in pain? I’d like to think that it won’t be and be in better position Sunday.

TE’s – I’ll have some action with Gronk & Gates. Chargers will have to throw against GB. Eifert played incredibly on Sunday (thanks to that for my main season-long league). Barnidge is apparently a) a real-life football player and b) target monster. Charles Clay is near the top of TASER as well, but with Tyrod potentially out, I may want to avoid that Bills line-up altogether.

These are my initial thoughts – I’ll see today and tomorrow what I can put together and post going forward.

Good luck to the ALDS teams today in their Game 5’s!

Happy to say my Red Wings in NHL are an impressive 3-0-0 with a +7 differential to go with the Broncos 5-0. Keep it up!

Week 4 Results – DK Fail & FanDuel Success October 7, 2015

Posted by bluedevil32 in Daily fantasy football, DFS, Draftkings, experience, FanDuel, gym, NFL, Stacks, week 4.
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Yup, that’s right! FanDuel – there wasn’t a contest that I didn’t place in. Mainly due to the fact that my lineups did very well in all of the 50/50’s, DoubleUps and free-rolls. However, on draftkings, where I played a majority of tournaments, I was very close to min. cash or not in the money at all.

For week 3, I was gone/without service all weekend, so the few lineups I had in, I minimally cashed/lost. 2 weeks in a row on DK that I have lost a few $ here and there (not to mention the fun runs I took at LoL Championships as well as Wed-Fri spread of MLB games – not wise when teams were already clinched or didn’t care).

  • Fanduel results:
    5 entries played – 4 wins – 2 ticket (survivor advance, barely)
    I don’t remember where I read it, but there was an analysis done on larger 50/50’s where, assuming you’re on average better than a majority of players, you have a greater success rate in larger pools. So far, that’s proved to be correct.

    • In $350k Double-Up (with nearly 75k entries), I placed 5842 with a score of 123.74 ($5 entry for $10 winnings).
      Dalton/Green stack with LMurray, Karlos, Demaryius, Amari, MBennett, MBryant/Falcons D stack (high score)
    • FPFC Qualifier Double-Up (152 of 521) with score of 111.94 ($10 entry for $20 winnings)
      Carr/Crabtree stack w/ Karlos, JCharles, JuJones (ouch), JaJones, Barnidge (savior), Hauschka/Seattle D stack
    • Excl Football Guys Contest didn’t go that well (777 of 3119) with 110.84 ($2 entry $2 win)
      same as FPFC except swapped JamesJones/Barnidge for Amari & Martellus
    • FBGFC Qualifier Double-Up tournament (32 of 1097) with 130.06 ($10 entry $20 win & ticket later in season)
      Cam, Forte, Karlos, Julio, Amari, Moncrief, Martellus, Josh Lambo (nice 14), Falcons D (yup)
    • $250k Sun NFL Survivor Tourney (42406 of 57471) with 88.54 ($5 entry, ticket won, advanced)
      Dalton/Green stack with Randle/LMurray(ouch comb 13), demaryius, stevieJ (ugh), ebron (injured), mcmanus/Denver D stack (decent scores)
    • FantasyPros $2000 contest for saved lineups – placed 65 of 951 for $20 credit on FD (devonta and andy dalton)
  • So I found that I like stacking kickers with the defenses so far. Relatively positive correlation and it has worked with a select few kickers/defense – good field position relations, typically.
  • Draftkings results:
    • As I mentioned, this didn’t go as well. Likely because I played in too many tournaments.
    • In the double-ups I played, I cashed in all 3. So for those keeping count, I was 6 for 6.
    • Same lineup for 3 double-ups score of 136.74 (62 of 217), (99 of 340), (423 of 1135) for 3x $1 entries, $2 each of winnings
      Carr/Crabtree stack, Gore, Karlos, Cobb, Deandre (2nd half!!), JuJones, Bennett (yup), Broncos D
    • I played all-day Sunday teams and had a ~112 score, while I played early Sunday match lineups and had those go for 147 and 144 for winners.
    • 2x $.25 Arcade & $2k First Down ($1 entry, $2 win) earlies for $.50 winnings on $.25 entries (144.66 score)
      Tyrod/Karlos/Clay/Bills D stack w/ Forte, AJ Green, T.Y., Deandre (savior), AllenRob
    • Had a ThursSun Line-up that did terribly (103.96) for $3 entry and 0 winnings
      Flacco/SmithSr/MaxxWill/Ravens stack, Leveon, Ivory (rb successes), ABrown, Rishard, Jarvis (wr duds)
    • Played $0.25 Quarter Arcade (Sun only) for $1 entry, $2 winnings (147.56 score)
      Rodgers, Devonta (great), Hyde, Keenan, Amari, JuJones, Fleener (good), Karlos, Raiders D
    • Daily Dollar ($50k) $1 entry for $2 win (136.74 score for 9220 of 52596)
      Carr/Crabtree stack, Gore, Karlos, Cobb, Deandre, JuJones, Bennett, Broncos D
    • 130.16 score didn’t work for $1 $150k First Down or $0.25 Arcade
      Rodgers/Packers, Devonta, Gore, Evans, JuJones, Moncrief, Olsen, Karlos
    • Another Flacco / Ravens stack for Thurs-Sun produced the 112, which didn’t go well in any of the 3 entries (-$5).
  • So we’ll see. Seems consistent with stacks where I’ll go 2 for 4 and hope that the stacks hit bigger. This week, they didn’t do as much because of the chalk not performing as well. The few good calls at TE and Devonta saved those stacks to at least cash.

We’ll see how the next week goes – I may end up trying more double-ups to at least build bankroll.

To next week!

Week 2 NFL DFS Recap September 23, 2015

Posted by bluedevil32 in Daily fantasy football, DFS, experience, NFL, Week 2.
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I woke up this morning to news from the lineup optimizer on FantasyPros: “CONGRATS! You came in 14th out of 1,728 players in our DraftKings Lineup Contest. Claim your $20 DraftKings Prize: You’re all set. The $20 prize will be credited to the DraftKings use”

Great news! I only entered 2 lineups since I had forgot about it, and my Ravens stack did very well.

QB Flacco, RB Forsett, RB Lynch, FLEX Hyde (two weaknesses), WR A Brown, WR A Robinson, WR J Landry, TE Gillmore, D Ravens

I have really enjoyed fantasypros – found them last year before the season so I have a pro subscription for seasonal fantasy and have found their optimizer one of my favorites. Nearly all of the data is pooled from experts across the industry.
First, let’s speak of Fanduel, where I played 3 lineups in a total of 6 contests. I had 2 H2H (one was free, other for $2), 1 50/50 league at $1, 1 DoubleUp for $2, another for $10, and a $4k tourney for $1. I won both H2H and the $10 double up. Something like $16.00 in fees for a simple winnings of $23, +$7 (~38%). The TeamRankings Football Championship Week 2 was my best scoring lineup – 123.2, good for 83 of 535. Lineup was saved by Antonio Brown (32) and Larry Fitz (33.2), Jordan Matthews garbage time TD (17), and consistent scoring from Bailey (8) and Texans D (6), but dragged by Brees, Abdullah, Lynch, ASJ.
99.9 was enough to win a the $2 and free H2H’s, rolling with Carson Palmer (22.2), John Brown (7), L Miller (6.7), Lynch (7.7), Garcon (11.3), ODB (24.1), Eifert (12.9), Josh Brown (9) and Ravens D (-1). RB’s didn’t end up haunting me in the H2H, thankfully.
With DraftKings, I had a lineup go for 188.66, one for 180.36, one for 171.96, 129.9, 122, 89.36, 80.26, 115.9, or 126.3.
  • I played 5 H2H’s – one lost on Monday night. I went 1-1 in $5 H2H (net -$1), 1-2 in $1 H2H (net -$1.20).
  • I played 3 freerolls and went winless.
  • Where I did make my money was in $0.25 arcades, $1 and $3 tourneys.
    • I placed 1405 of 115k for $7 on a $1 entry (net $6) with 180.36
    • I played 5 quarter arcades (3-2) for 3 entries won (net $3.75) – 188.66, 180.36 and 171.96.
    • I played 2 $1 entry to $10k gpp and finished 149 and 151 of 11.5k entries (180.36 and 180.26) for (net $8)
  • I found great success with stacking Pitt (Big Ben, Deangelo, ABrown, Heath) as well as mixing in Woodhead, TWill, and the Cardinals D.
  • Flacco, Forsett (eh), Gillmore and Ravens D (eh) with receivers ABrown, Allen Robinson, and Jarvis. Marshawn was not a success but needed a big horse to anchor the RB spots.
  • I had Saints and Eagles stacks that did not perform very well. Luckily, they were good enough in h2h games, saved by other receiver plays.

Until next week, see you!

Thoughts of the Day – GenY finance, Daily fantasy ‘expert’-testing, other questions September 17, 2015

Posted by bluedevil32 in Altucher, DFS, experience, finance, gym, PGA, questions, Scutify, social, training.
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Every day I receive a post from James Altucher @jaltucher – he’s an author of one of USA Today’s “12 Best Business Books of All-Time” Choose Yourself, which describes at length the power of one’s self, as well as a successful (and that does not mean he hasn’t failed) entrepreneur, hedge fund manager, asset manager, columnist, as well as podcast producer. His valuable insights, podcasts and publications enlighten us to choose yourself and your passions to create revenue streams aplenty. He simply asks a lot of questions of many people to see what has driven them, and in turn, learn for himself.

In my recent conversations, I have noticed that this is a skill that is falling out of favor very easily of many people – and more so, whether they’re just more of who I come into contact with, but Gen Y and Millennials. So, in light of my observations, I would like to go over what I observed/questioned today.

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Daily Fantasy NFL Week 1 Results September 15, 2015

Posted by bluedevil32 in Daily fantasy football, DFS, NFL, Week 1.
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So, after 1 week I am in the black quite a bit, despite an overall losing record! Who doesn’t like those tournaments?!

Last year I was going more off of a feel for playing and breaking even. This year, I will look for tournament opportunities for overlay and pad with a better performance on h2h, triple ups or 50/50s. Fortunately, for overlays (where value is much higher per entry because the guaranteed money does not meet the number of entries), I stumbled upon a number of sites that aid in finding these. Namely, Super Lobby! which combines Draftkings and Fanduel (among others) to show overlay in tournaments. Incredibly useful for the people who are trying to be smart about entry fees.

For those that are curious how I did this past week, continue reading. Otherwise, I will post who I’m looking at and what I’m doing for Week 2 in the coming days! Again, if you’re looking to play or take a shot: Draftkings link! – Remember to search for a promo code on your favorite fantasy / insider website to valuable premium subscriptions (Rotogrinders, 4for4, fantasypros, teamrankings). Fanduel if you prefer .5 ppr and Kickers

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