NOSTRADAMUS · Position Analytics Engine

SIMULATOR Will Aurora win IEM Cologne Major 2026?

A live, interactive instrument for dissecting a single binary position. Sweep the inputs and watch every indicator recompute — payoff geometry, Kelly growth, Bayesian posterior, KL divergence, cost waterfall, Monte-Carlo equity fan, forecast calibration. Companion to the live /feed/pm-will-aurora-win-iem-cologne-major-2026 page.

▲ YES EDGE · +0.046 · f★ 4.8% · deploy 2.4% · net 3.89pp

§1 · Position economics

Payoff diagram · binary contract P/L vs resolution
YES · Expected P/L per share +0.0464@ model P(YES) = 0.071
-1.00-0.50+0.00+0.50+1.000.000.200.400.600.801.00price 0.025model 0.071YES resolution priceP/L per $1 contract
P/L per sharemarket pricemodel Pprofit zoneloss zone
Profit is linear in the eventual settlement price.
Kelly growth curve · g(f) with f★ and deployed f markers
f★ = 4.75% · g(f★) = 3.000%deploy 2.38% · g = 2.483%
-11.00%-7.39%-3.77%-0.16%3.45%0%8%16%24%32%40%f★ optimumdeployfraction of bankroll fexpected log-growth g(f)
g(f)f★ optimumdeployed fgrowth zone
Underbet leaves growth on the table; overbet destroys capital. The interior maximum is f★.

§2 · The trade ticket

Trade ticket · dollar outcomes at this stake
YES @ 0.025 · EV +$1,124stake $594 · 2.38% of bankroll
Deployed stakestake
$594
2.38% of bankroll
Sharesunits
24,242
each pays $1 if YES
Max payoutwin
$24,242
gross, if win
Max profitwin
+$23,648
net of cost
Max losslose
-$594
binary settles to $0
Payout multiple×
×40.82
$1 → $40.82
Risk:RewardR:R
39.82 : 1
win $39.82 per $1
Expected P/LE[P/L]
+$1,124
probability-weighted
OutcomeP(model)P/LContribution
Resolves YES (win)7.1%+$23,648+$1,675
Resolves against (lose)92.9%-$594-$552
Expected value100.0%+$1,124
What you actually win and lose. The bottom table tabulates probability-weighted P/L by outcome.

§3 · Break-even & cushion

Break-even & cushion · margin of safety
Cushion +4.6 pprelative edge +189.2%
Required win ratebreak-even
2.5%
price = implied probability
Model win rateP(win)
7.1%
what you forecast
Cushionedge
+4.6 pp
margin of safety
Fair pricemodel
0.071
where you think it should trade
-60-3003060020406080100you @ 2.5%market price (%)cushion (pp)
The market price equals the win rate you must beat to make money.

§4 · Odds conversion

Implied probability, decimal, American, fractional
Implied probabilityP
2.5%
= price
Decimal oddsEU
40.816
total return per $1
AmericanUS
+3982
$100 wins $3982
FractionalUK
39.82 / 1
profit per $1 risked
Profit per $100stake
+$3981.63
clean dollar framing
-1000-5000+500+1000020406080100you · 2.5%implied probability (%)American odds
underdog (+)favorite (-)your price
Five views of the same number.

§4b · Time & annualized return

Time & APR · capital lockup vs annualized return
APR 3288% · APY 10368227502%ROI 189.2% over 21d · 17.4 turns/yr
Time to resolvehorizon
21.0 d
504h capital lockup
Raw ROIper resolve
+189.2%
APR (simple)scaled
+3288%
ROI × 365/days
APY (compounded)if redeployed
+10368227502%
(1+ROI)^(365/d) − 1
Daily expectedper day
+5.19%
geometric, per day held
Capital turns/yrvelocity
×17.4
how often this slot recycles
0%2281010050%4562020101%6843030151%9124040201%11405050252%121416180100120now 21ddays to resolutionannualized return (capped 1000%)
simple APRcompounded APYyour horizon
Rank positions by APR, not raw ROI. A thin edge tomorrow beats a fat edge next year.

§5 · Costs & net edge

Cost waterfall · gross edge → net of friction
Net edge +3.89 pperosion 16% · break-even w/ fees 3.2%
-0.1pp1.1pp2.3pp3.5pp4.7pp5.9pp+4.64Gross edge-0.75- ½ spread+0.00- entry fee+0.00- exit fee+3.89Net edgeEV / share (pp)
gross edgefrictionnet edgefee 0 bps · spread 1.50¢
The number that decides whether to trade.

§6 · Sizing menu

Sizing menu · disciplined deployment
Full Kellyf★
$1,188
4.75% · g = 3.000%
Half Kelly½ f★
$594
2.38% · g = 2.483%
Quarter Kelly¼ f★
$297
1.19% · g = 1.634%
Flat 1%1%
$250
1.00% · g = 1.441%
Flat 2%2%
$500
2.00% · g = 2.273%
Flat 5%5%
$1,250
5.00% · g = 2.996%
Recommended¼ f★
$297
survives model error
$0$369$738$1,106$1,475$1,188Full Kelly4.75%$594Half Kelly2.38%$297Quarter Kelly1.19%$250Flat 1%1.00%$500Flat 2%2.00%$1,250Flat 5%5.00%
Quarter-Kelly is the industry default — survives model error far better than full Kelly.

§7 · Information theory

Binary entropy · uncertainty in bits
Market entropyH(p)
0.166 bit
max 1.0 at p = 0.5
Your entropyH(q)
0.369 bit
Δ +0.203 bit vs market
Surprise · YES−log₂ p
5.35 bit
self-information
Surprise · NO−log₂(1−p)
0.04 bit
self-information
0.000.260.530.791.050.00.20.40.60.81.0marketmodelprobabilityH (bits)
H(p) peaks at p = 0.5 (one bit of irreducible doubt).
KL divergence · upper bound on exploitable edge
SIGNAL · D_KL(q ‖ p) = 0.0300 nat (0.0433 bit)exploitable edge present
-0.055-0.0170.0210.0600.0980.0752YES branch-0.0452NO branchΣKL = 0.0300 natKL contribution (nat)
YES contributionNO contributionbelief ‖ marketsignal
Zero KL ⇒ you know nothing the crowd doesn't.

§8 · Bayesian inference

Bayesian posterior · prior + evidence → belief with 95% CI
MARKET PRICE INSIDE 95% CIposterior μ 0.071 · CI [0.00, 0.23] · κ 17.3
Posterior meanE[θ]
0.071
Beta(1.2, 16.1)
95% credible intervalHDI
[0.00, 0.23]
price INSIDE → weak edge
Concentrationκ
17.3
pseudo-obs behind belief
Disagreementvs crowd
+4.6 pp
posterior − price
0.000.200.400.600.801.00marketposterior μprobability θposterior density
market prior (dashed)model posterior95% credible bandmarket price
When the market price falls outside the 95% credible interval, your disagreement is statistically meaningful.

§9 · Tail risk · Monte-Carlo (mode A · single position to resolution)

Mark-to-market MC · single position held to resolution
E[P/L] +195.9% · P(YES) 7.2% · VaR₉₅ 100.0%400 paths · 504 bars to resolution
Expected P/Lper $1
+195.92%
P(YES) empiricalq
7.2%
Best pathmax
+3981.6%
Worst pathmin
-100.0%
VaR 95%5%
100.0%
CVaR 95%ES
100.0%
25¢50¢75¢100¢084168252336420504entry 2.5¢model q 7.1¢bars until resolutionprice path
median path25/75 + 5/95 bandsentry pricemodel q
Logit-space mean-reverting walk + terminal flip with probability q. Answers: 'what happens to THIS one position'. Distinct from the repeated-edge fan below.

§9b · Tail risk · Monte-Carlo (mode B · repeated independent edges)

Monte-Carlo equity fan · this profile, repeated 400× independently
Median CAGR/bet 2.81% · ruin rate 12.5%400 paths × 120 bets · f deploy 2.38%
Sharpe / betμ/σ
0.195
μ 5.03% · σ 25.7%
Sortino / betμ/σ↓
2.116
downside-only denominator
VaR 95%5%
-2.4%
per-bet worst-case
CVaR 95%ES
-2.4%
mean tail loss
Max drawdownMDD
-28.6%
Calmar 0.10
Ruin rate≤50%
12.5%
P(equity ever ≤ 50%)
0.41×197.32×394.23×591.15×788.06×984.97×020406080100120startruin 50%bet #bankroll multiple
median25/75 band5/95 bandruin line
Answers a different question: 'if I could find this exact edge forever, what is the bankroll trajectory'. Compounds 120 sequential resolutions which is NOT what happens to a single position.

§10 · Base-rate & macro context

Probability stack · base rate vs crowd vs model
ANCHORED · supported by convictionanchor gap -45.2pp · crowd gap -49.9pp
0%20%40%60%80%100%Reference base rate52.3%Market price2.5%Model P(YES)7.1%
Anchor gapmodel − base
-45.2 pp
Crowd gapprice − base
-49.9 pp
Verdictdiscipline
ANCHORED
Reference-class anchoring prevents narrative-driven blowups.

§11 · Forecast quality (synthetic ledger)

Brier · Murphy decomposition · reliability · ROC
SKILL POSITIVE · in-sample BSS 22.3% · AUC 0.778out-of-sample BSS (5-fold) 22.4% ± 1.9% · Brier 0.1943 · log-loss 0.5822 · n 1600n = 1600
BrierBS
0.1943
lower = better · ō 0.50
BSSvs base
22.3%
improvement over base rate
ReliabilityREL
0.0044
miscalibration · want ↓
ResolutionRES
0.0594
decisiveness · want ↑
Log lossLL
0.5822
cross-entropy
AUCROC
0.778
0.5 coin · 1.0 oracle
0.00.20.40.60.81.00.00.20.40.60.81.0stated probability fobserved frequency ō0.00.20.40.60.81.00.00.20.40.60.81.0AUC = 0.778false positive ratetrue positive rate0.0000.0750.1500.2250.3000.250UNC0.059RES0.004REL0.194BRIERcontribution
calibration curveROCUNC (irreducible)RES (skill, ↑)REL (miscalib, ↓)
Computed on a seeded synthetic forecast ledger. Reseed (⟳) to redraw.

§12 · Journal vitals (synthetic ledger)

Track record · win rate · PF · expectancy · CLV · equity curve
PROFITABLE · PF 1.09 · expectancy +0.044R180 trades · win 52.2% · Sharpe 0.039
Total P/Lnet
+$1,960
on $45,000 cycled
Win ratehit %
52.2%
94 W / 86 L
Profit factorPF
1.09
$ won / $ lost
Expectancyper trade
+$10.89
avg $ per position
R-expectancyper risk
+0.044R
in units of risk taken
Avg win / losspayoff
$249.58 / -$250.00
ratio 1.00 : 1
Sharpe / traderisk-adj
0.039
μR / σR
Closing line valueCLV
+2.68 pp
avg edge vs close
-$2,445-$1,102$242$1,585$2,92803672108144180trade #cumulative P/L (USD)
cumulative P/Lprofitable zonered zonesynthetic · seeded from asset
The scorecard every trader checks. Synthetic ledger seeded from the asset slug — recomputes against your real fill history once wired.

▸ Advanced metrics · M2M bundle

polymarket · will-aurora-win-iem-cologne-major-2026 · fresh · feed 0s old
realized vol (ann.)
max drawdown
sharpe
ulcer index
RMS drawdown
pain index
mean drawdown
mod. VaR 95%
Cornish-Fisher
martin ratio
ret / ulcer
CDaR 95%
cond. drawdown
gain/pain
Σgain / Σ|loss|
sterling
ret / CDaR
omega (θ=0)
upside/downside
roll spread
implied (price-only)
bars used
0
insufficient
spread
24h Δ
flow lean
carry
flat
signalNEUTRALconfidence 0%
  • insufficient history for risk metrics — directional read only
Same bundle via M2M API: /api/m2m/pm-will-aurora-win-iem-cologne-major-2026/bundle · venue execution: polymarket