brackt/app/services/__tests__/ev-calculator.test.ts

363 lines
9.6 KiB
TypeScript
Raw Normal View History

feat: implement Expected Value System with ICM probability calculator Implements Phase 5.2 of the EV system with Harville-Malmuth Independent Chip Model for calculating participant placement probabilities from futures odds. ## Key Features ### ICM Probability Calculator - Implements Harville-Malmuth method for distributing probabilities - Converts American odds to championship probabilities - Generates P(1st) through P(8th) for all participants - Column-normalized: each placement sums to 100% across all teams - Works with any number of participants (not limited to 8) ### Admin UI - Futures Odds Entry - Enter American odds (e.g., +550, -200) for championship futures - Live preview of ICM-calculated probability distributions - Displays all 8 placement probabilities - Persists odds for editing on subsequent visits - Automatic probability normalization (removes bookmaker vig) ### Database Schema Updates - Renamed participant_expected_values.season_id → sports_season_id - Updated foreign key to reference sports_seasons instead of seasons - Added source_odds field to store original futures odds - Migration 0025: Column rename and FK update - Migration 0026: Add source_odds field ### Model Layer - participant-expected-value: CRUD operations for probability distributions - Supports multiple probability sources (manual, futures_odds, elo_simulation) - Automatic EV calculation based on league scoring rules - Probability validation and normalization ### Service Layer - icm-calculator: Harville-Malmuth probability distribution - probability-engine: Odds conversion and Elo utilities (for future use) - bracket-simulator: Monte Carlo simulation (for future hybrid approach) - ev-calculator: Expected value computation from probabilities ## Technical Details - Uses exponential decay favoring top positions for strong teams - Preserves championship probability ordering in final distributions - Row sums vary (strong teams ~100%, weak teams lower) - All probabilities between 0-1, mathematically valid - Comprehensive test suite: 97 tests passing ## Future Enhancements - Hybrid approach: ICM pre-playoffs, bracket simulation during playoffs - Integration with league-specific scoring rules - Historical probability tracking for accuracy analysis 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude <noreply@anthropic.com>
2025-11-17 22:19:46 -08:00
import { describe, it, expect } from "vitest";
import {
calculateEV,
validateProbabilities,
normalizeProbabilities,
calculateProjectedTotal,
type ScoringRules,
type ProbabilityDistribution,
} from "../ev-calculator";
describe("calculateEV", () => {
const defaultScoring: ScoringRules = {
pointsFor1st: 100,
pointsFor2nd: 70,
pointsFor3rd: 50,
pointsFor4th: 40,
pointsFor5th: 25,
pointsFor6th: 25,
pointsFor7th: 15,
pointsFor8th: 15,
};
it("should calculate EV for equal probabilities", () => {
const probabilities: ProbabilityDistribution = {
probFirst: 12.5,
probSecond: 12.5,
probThird: 12.5,
probFourth: 12.5,
probFifth: 12.5,
probSixth: 12.5,
probSeventh: 12.5,
probEighth: 12.5,
};
const ev = calculateEV(probabilities, defaultScoring);
// EV = 12.5% × (100+70+50+40+25+25+15+15) = 12.5% × 340 = 42.5
expect(ev).toBe(42.5);
});
it("should calculate EV for favorite (high probability of 1st)", () => {
const probabilities: ProbabilityDistribution = {
probFirst: 50,
probSecond: 30,
probThird: 10,
probFourth: 5,
probFifth: 3,
probSixth: 1,
probSeventh: 0.5,
probEighth: 0.5,
};
const ev = calculateEV(probabilities, defaultScoring);
// EV = 50% × 100 + 30% × 70 + 10% × 50 + 5% × 40 + 3% × 25 + 1% × 25 + 0.5% × 15 + 0.5% × 15
// = 50 + 21 + 5 + 2 + 0.75 + 0.25 + 0.075 + 0.075 = 79.15
expect(ev).toBe(79.15);
});
it("should calculate EV for underdog (low probability of 1st)", () => {
const probabilities: ProbabilityDistribution = {
probFirst: 2,
probSecond: 5,
probThird: 8,
probFourth: 10,
probFifth: 15,
probSixth: 20,
probSeventh: 20,
probEighth: 20,
};
const ev = calculateEV(probabilities, defaultScoring);
// EV = 2% × 100 + 5% × 70 + 8% × 50 + 10% × 40 + 15% × 25 + 20% × 25 + 20% × 15 + 20% × 15
// = 2 + 3.5 + 4 + 4 + 3.75 + 5 + 3 + 3 = 28.25
expect(ev).toBe(28.25);
});
it("should calculate EV with custom scoring rules", () => {
const customScoring: ScoringRules = {
pointsFor1st: 200,
pointsFor2nd: 150,
pointsFor3rd: 100,
pointsFor4th: 80,
pointsFor5th: 50,
pointsFor6th: 50,
pointsFor7th: 30,
pointsFor8th: 30,
};
const probabilities: ProbabilityDistribution = {
probFirst: 20,
probSecond: 20,
probThird: 15,
probFourth: 15,
probFifth: 10,
probSixth: 10,
probSeventh: 5,
probEighth: 5,
};
const ev = calculateEV(probabilities, customScoring);
// EV = 20% × 200 + 20% × 150 + 15% × 100 + 15% × 80 + 10% × 50 + 10% × 50 + 5% × 30 + 5% × 30
// = 40 + 30 + 15 + 12 + 5 + 5 + 1.5 + 1.5 = 110
expect(ev).toBe(110);
});
it("should handle 100% probability of one placement (finished participant)", () => {
const probabilities: ProbabilityDistribution = {
probFirst: 100,
probSecond: 0,
probThird: 0,
probFourth: 0,
probFifth: 0,
probSixth: 0,
probSeventh: 0,
probEighth: 0,
};
const ev = calculateEV(probabilities, defaultScoring);
expect(ev).toBe(100); // 100% × 100 = 100
});
it("should handle probabilities with decimal places", () => {
const probabilities: ProbabilityDistribution = {
probFirst: 15.75,
probSecond: 14.25,
probThird: 13.50,
probFourth: 12.75,
probFifth: 11.00,
probSixth: 10.50,
probSeventh: 11.25,
probEighth: 11.00,
};
const ev = calculateEV(probabilities, defaultScoring);
// EV = 15.75% × 100 + 14.25% × 70 + ... = 46.29
expect(ev).toBeCloseTo(46.29, 2);
});
it("should return 0 when all probabilities are 0", () => {
const probabilities: ProbabilityDistribution = {
probFirst: 0,
probSecond: 0,
probThird: 0,
probFourth: 0,
probFifth: 0,
probSixth: 0,
probSeventh: 0,
probEighth: 0,
};
const ev = calculateEV(probabilities, defaultScoring);
expect(ev).toBe(0);
});
});
describe("validateProbabilities", () => {
it("should validate probabilities that sum to 100", () => {
const valid: ProbabilityDistribution = {
probFirst: 20,
probSecond: 20,
probThird: 15,
probFourth: 15,
probFifth: 10,
probSixth: 10,
probSeventh: 5,
probEighth: 5,
};
expect(validateProbabilities(valid)).toBe(true);
});
it("should accept probabilities within tolerance (default 0.1%)", () => {
const nearlyValid: ProbabilityDistribution = {
probFirst: 20.05,
probSecond: 20,
probThird: 15,
probFourth: 15,
probFifth: 10,
probSixth: 10,
probSeventh: 5,
probEighth: 4.95,
};
expect(validateProbabilities(nearlyValid)).toBe(true);
});
it("should reject probabilities that sum too high", () => {
const tooHigh: ProbabilityDistribution = {
probFirst: 20,
probSecond: 20,
probThird: 20,
probFourth: 20,
probFifth: 10,
probSixth: 10,
probSeventh: 5,
probEighth: 5,
};
expect(validateProbabilities(tooHigh)).toBe(false);
});
it("should reject probabilities that sum too low", () => {
const tooLow: ProbabilityDistribution = {
probFirst: 10,
probSecond: 10,
probThird: 10,
probFourth: 10,
probFifth: 10,
probSixth: 10,
probSeventh: 5,
probEighth: 5,
};
expect(validateProbabilities(tooLow)).toBe(false);
});
it("should allow custom tolerance", () => {
const probabilities: ProbabilityDistribution = {
probFirst: 21,
probSecond: 20,
probThird: 15,
probFourth: 15,
probFifth: 10,
probSixth: 10,
probSeventh: 5,
probEighth: 4,
};
// Sum is 100, but with 1% tolerance
expect(validateProbabilities(probabilities, 1)).toBe(true);
// With stricter 0.1% tolerance
expect(validateProbabilities(probabilities, 0.1)).toBe(true);
});
});
describe("normalizeProbabilities", () => {
it("should normalize probabilities that sum to more than 100", () => {
const input: ProbabilityDistribution = {
probFirst: 22,
probSecond: 22,
probThird: 17,
probFourth: 17,
probFifth: 11,
probSixth: 11,
probSeventh: 5.5,
probEighth: 5.5,
};
// Sum = 111
const normalized = normalizeProbabilities(input);
// Each should be scaled down by 100/111
expect(normalized.probFirst).toBeCloseTo(19.82, 2);
expect(normalized.probSecond).toBeCloseTo(19.82, 2);
// Sum should be exactly 100 (within rounding)
const sum = Object.values(normalized).reduce((a, b) => a + b, 0);
expect(sum).toBeCloseTo(100, 1);
});
it("should normalize probabilities that sum to less than 100", () => {
const input: ProbabilityDistribution = {
probFirst: 18,
probSecond: 18,
probThird: 13.5,
probFourth: 13.5,
probFifth: 9,
probSixth: 9,
probSeventh: 4.5,
probEighth: 4.5,
};
// Sum = 90
const normalized = normalizeProbabilities(input);
// Each should be scaled up by 100/90
expect(normalized.probFirst).toBeCloseTo(20, 1);
expect(normalized.probSecond).toBeCloseTo(20, 1);
const sum = Object.values(normalized).reduce((a, b) => a + b, 0);
expect(sum).toBeCloseTo(100, 1);
});
it("should handle probabilities that already sum to 100", () => {
const input: ProbabilityDistribution = {
probFirst: 20,
probSecond: 20,
probThird: 15,
probFourth: 15,
probFifth: 10,
probSixth: 10,
probSeventh: 5,
probEighth: 5,
};
const normalized = normalizeProbabilities(input);
// Should remain essentially unchanged
expect(normalized.probFirst).toBeCloseTo(20, 1);
expect(normalized.probSecond).toBeCloseTo(20, 1);
});
it("should handle all zeros by returning equal probabilities", () => {
const input: ProbabilityDistribution = {
probFirst: 0,
probSecond: 0,
probThird: 0,
probFourth: 0,
probFifth: 0,
probSixth: 0,
probSeventh: 0,
probEighth: 0,
};
const normalized = normalizeProbabilities(input);
// Should return 12.5% for each (equal distribution)
expect(normalized.probFirst).toBe(12.5);
expect(normalized.probSecond).toBe(12.5);
expect(normalized.probEighth).toBe(12.5);
});
});
describe("calculateProjectedTotal", () => {
it("should calculate projected total with multiple unfinished participants", () => {
const result = calculateProjectedTotal(
150, // actual points from finished
[45.5, 30.2, 25.8, 20.1] // EVs of unfinished participants
);
expect(result.actualPoints).toBe(150);
expect(result.projectedPoints).toBe(271.6); // 150 + 121.6
expect(result.participantsRemaining).toBe(4);
});
it("should handle no remaining participants", () => {
const result = calculateProjectedTotal(250, []);
expect(result.actualPoints).toBe(250);
expect(result.projectedPoints).toBe(250); // Same as actual
expect(result.participantsRemaining).toBe(0);
});
it("should handle zero actual points", () => {
const result = calculateProjectedTotal(0, [50, 40, 30]);
expect(result.actualPoints).toBe(0);
expect(result.projectedPoints).toBe(120);
expect(result.participantsRemaining).toBe(3);
});
it("should round to 2 decimal places", () => {
const result = calculateProjectedTotal(100.123, [25.456, 30.789]);
expect(result.actualPoints).toBe(100.12);
expect(result.projectedPoints).toBe(156.37); // Rounded
});
});