'use strict'; /** * De-vig engine (Model Train, step 1) — the foundation for EV + value. * * A two-sided prop price carries the book's vig (the "overround"): the two * sides' implied probabilities sum to MORE than 1. De-vigging strips that back * out to FAIR probabilities that sum to 1, and converts them back to a fair * (vig-free) price per side. * * METHOD: multiplicative / proportional de-vig — each side's implied prob is * divided by the total. It's the standard, distribution-free two-way method * (a.k.a. "normalized implied probability"). Simple, transparent, and correct * for two-way markets; we note it in the stored `method` field. * * If only one side is priced, fair values are UNAVAILABLE (null) — never faked. */ const round3 = (n) => Math.round(n * 1000) / 1000; /** American odds → implied probability (WITH the vig). Null on bad input. */ function americanToImpliedProb(american) { const a = Number(american); if (!Number.isFinite(a) || a === 0) return null; return a > 0 ? 100 / (a + 100) : (-a) / ((-a) + 100); } /** American odds → decimal odds (total return multiple incl. stake). */ function americanToDecimal(american) { const a = Number(american); if (!Number.isFinite(a) || a === 0) return null; return a > 0 ? 1 + a / 100 : 1 + 100 / (-a); } /** Probability → fair American odds. Null outside (0,1). */ function impliedProbToAmerican(p) { if (!Number.isFinite(p) || p <= 0 || p >= 1) return null; // Even money (50%) is +100 by convention → favorites (p > .5) go negative. return p > 0.5 ? -Math.round((p / (1 - p)) * 100) : Math.round(((1 - p) / p) * 100); } /** * Two-way de-vig. Given BOTH sides' American odds, return fair prob + fair price * per side plus the overround. Null when a side's odds are missing/invalid — * the caller marks fair as unavailable rather than inventing it. */ function devigTwoWay(overOdds, underOdds) { const po = americanToImpliedProb(overOdds); const pu = americanToImpliedProb(underOdds); if (po == null || pu == null) return null; const sum = po + pu; // > 1 by the vig if (!(sum > 0)) return null; const fairOver = po / sum; const fairUnder = pu / sum; return { method: 'multiplicative', overround: round3(sum - 1), over: { fair_prob: round3(fairOver), fair_odds: impliedProbToAmerican(fairOver) }, under: { fair_prob: round3(fairUnder), fair_odds: impliedProbToAmerican(fairUnder) }, }; } /** * Expected value (%) of staking one unit on `american` when the model gives the * side probability `modelProb`. EV per unit = p·decimal − 1. Positive = the bet * is +EV at the price you'd actually pay (the vig is already baked into the * actual price, so this is the true "does it pay you" measure). Null on bad input. */ function evPct(modelProb, american) { const dec = americanToDecimal(american); if (!Number.isFinite(modelProb) || modelProb <= 0 || dec == null) return null; return Math.round((modelProb * dec - 1) * 1000) / 10; // one decimal place } module.exports = { americanToImpliedProb, americanToDecimal, impliedProbToAmerican, devigTwoWay, evPct, };