Adapting support vector machine methods for horserace odds prediction

Article

DOI: 10.1007/s10479-006-0131-7

Cite this article as:
Edelman, D. Ann Oper Res (2007) 151: 325. doi:10.1007/s10479-006-0131-7

Abstract

The methodology of Support Vector Machine Methods is adapted in a straightforward manner to enable the analysis of stratified outcomes such as horseracing results. As the strength of the Support Vector Machine approach lies in its apparent ability to produce generalisable models when the dimensionality of the inputs is large relative to the the number of observations, such a methodology would appear to be particularly appropriate in the horseracing context, where often the number of input variables deemed as being potentially relevant can be difficult to reconcile with the scarcity of relevant race results. The methods are applied to a relatively small (200 races in-sample) sample of Australian racing data and tested on 100 races out-of-sample with promising results, especially considering the relatively large number (12) of input variables used.

Keywords

Computational Finance Wagering Markets 

Copyright information

© Springer Science+Business Media, LLC 2006

Authors and Affiliations

  1. 1.Banking & Finance UnitUniversity CollegeCo. DublinIreland

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