Weighted ROI is a risk-adjusted measure of return on investment that accounts for both wins and losses in Daily Fantasy Sports contests. Unlike a simple ROI calculation, Weighted ROI normalizes returns by giving less emphasis to outlier performances that might not be sustainable or realistic in actual contests.
How It Works:
• Risk Adjustment: By factoring in both the highs and lows of player performance, Weighted ROI provides a more balanced view of potential returns, smoothing out the impact of extreme outcomes.
• Normalization: This approach ensures that the ROI calculation reflects more typical, real-world scenarios, giving you a better understanding of expected returns under normal conditions.
Weighted ROI helps you evaluate the true performance potential of players, making it easier to identify consistent, reliable options for your lineups, rather than being swayed by occasional standout performances.