Identify Recency Bias in Markets
Bookmakers and bettors often overvalue recent performances, causing inflated odds on teams that had recent success.
Why It Matters:
• Recency bias leads to overpriced favorites and undervalued teams that may have performed poorly in their last game.
• Long-term consistency matters more than one-off results.
Application:
• Look for teams coming off heavy defeats that may be undervalued for their next fixture.
• Fade teams that are on long winning streaks but statistically over performing.