So what happened in the last few weeks has left a couple of traders confused about how Football Index can change player profiles, and most importantly player position changes. On Thursday 16th May Football Index updated some of the player profiles which led to a lot of traders losing out and some lucky traders enhancing their portfolio. This post explains what happened using the most talked about player involved, Joshua Kimmich.
Firstly, it needs to be understood that Football Index do not use their own data for their player profiles, instead, they use Opta. The importance of this is that Opta is a trusted third party data supplier and they provide independent information which is important for their regulations. This means that when the latest Opta data is released the Football Index platform automatically updates it’s player profiles (replacing previous data) meaning that some player profiles, and more importantly, player positions change. Due to the season coming to a close Opta’s latest data update categorised players based on their ‘International Squad List’. This caused disruption with some players positions varying between when they play for their club or country.
So what’s so important about player positions changing?
The simple answer to this is performance buzz. Matchday dividends are paid out on each of the highest scoring Defender, Midfielder, Forward and Overall Best Player. The change in a players position can move them from one category to another meaning that they may lose out on performance dividends due to entering a more competitive category. Check out our full guide to find out how does Football Index work?
The example we are going to use in this post, Joshua Kimmich, has been thriving as a defender winning Matchday dividends regularly in 2018/2019 season with an overall performance score of 5762 (second only to Lionel Messi with 6142). The change in Kimmich’s position from defender to midfielder saw his share price drop from £2.67 to £1.99. Following complaints from annoyed traders who saw their portfolio take a dip, Football Index reversed the position changes and apologised. However, this was too late for some traders who sold Kimmich when they noticed the position change. Kimmich is now back trading at £2.53 with the change in his value visible in the graph below.
So what’s next for Football Index position changes?
Football Index is now investigating new fairer ways to update their player profiles. Their existing systems of automatic updates is currently in review with their hesitance to move too quickly on providing a new and possibly glitchy solution that could affect future dividends payouts.
They have provided several different possible solutions which they are now going to investigate further, with the goal of creating a fair trading platform the key focus.
- Waterfall Hierarchy of Player Positions – This looks the most likely solution after a recent Football Index article. This system will select the position of players using a waterfall system, choosing the most applicable option. A waterfall system works through tiers of different criteria, with players not included in the top tier dropping to the tier below and so on. The highest tier will be the ‘Domestic League Position’ and this will account for the majority of players. These players positions will only change when there are changes to their Opta ‘Domestic League Position’. Players who do not have a domestic league position fall into the second tier which will be their ‘European Competitions Position’. This will include players Champions League and Europa League positions. Players that fall into the third tier will have their positions determined by their ‘International Competitions Position’. Finally, if Opta provides no data on player positions Football Index will manually enter a players position.
- Scheduled Player Profile Changes – In this outcome, players positions will not be automated but instead set dates will be agreed where a group of player profiles will be updated at the same time. Unfortunately, the floor in this option is that Opta data is made public upon release and some traders may gain an unfair advantage through having access before others. Football Index is working to partner up with Opta to discuss a way of them receiving information prior to release to keep the platform fair among traders and if this is agreed, this could be the future of position updates.
- Notifications to Traders – This isn’t necessarily a solution but it will make the platform a level playing field for traders. Football Index is working at creating notifications for traders who own shares in players that are changing position. Allowing them to make a fully informed decision before trading as well as being made aware of changes to their portfolio players.
- Position Changes Based on Gameplay – The final option is to change players positions based on their playing position on the day. For example, if a player who typically player right back was playing right midfield, for that day his Matchday score will be categorised with the midfielders. This could also cause disruption with players that regularly change position being avoided by traders due to their price volatility.
Football Index Tips Verdict:
Our advice to traders is to be patient with trades and to not act hastily or rush decisions once platform changes occur. There have been several instances where changes have been reversed by Football Index due to the backlash from traders, however, this cannot always be relied upon. We believe that traders should always stick to their chosen strategy and assess the whole situation before making major changes to your portfolio. Making rash decisions and panic trading is an easy way to lose money with patience being the key to trading successfully.