Value Detector — reading microstructure mispricings
How the Value Detector reads the order book for structural pricing imbalances, its output ratings, and why this is not trading advice.
What the Value Detector does
The Value Detector is an on-demand AI analysis tool that reads the current state of a runner's order book and assesses whether the available price reflects the structural balance of supply and demand in the market at that moment.
It is powered by Claude Opus, which reads the full order book — available money on both BACK and LAY sides across all visible price levels, recent matched volume distribution, and the spread — and produces a structured assessment of whether the current market price appears to over- or under-reflect the structural interest in this runner.
The Value Detector contains no racing form data, no handicap ratings, no trainer/jockey statistics, and no external information. Its assessment is based purely on the order book at the time of the request. It is microstructure analysis only.
Finding the Value Detector
Navigate to /trading/signals and select the Value Detector tab. Make sure you have a race open in the terminal and a runner selected. Click Analyse to run the assessment.
There is a 30-second rate limit between Value Detector requests per runner. This is to manage AI inference costs and ensure the analysis reflects a meaningful market state rather than re-running on a millisecond-by-millisecond basis.
Reading the output
The Value Detector produces one of four primary assessments:
POTENTIALLY_UNDERVALUED
The order book structure suggests more demand-side (backing) interest than is being reflected in the current price. The price may be higher than the structural balance of the book would suggest it should be — in other words, there appears to be more willingness to back than to lay at current levels.
POTENTIALLY_OVERVALUED
The opposite condition. The order book shows more supply-side (laying) interest relative to demand. The price may be lower than the structural balance suggests.
FAIRLY_PRICED
The order book structure appears balanced. Supply and demand at current price levels are broadly in equilibrium according to the visible order book.
INSUFFICIENT_SIGNAL
The order book does not contain enough information to make a meaningful structural assessment. This typically occurs in thin markets, very early in the pre-race window, or on outsiders with minimal matched activity.
Confidence ratings
Each assessment comes with a confidence rating: Low, Medium, or High. This rating reflects how clearly and consistently the order book signals the assessed condition. A High-confidence POTENTIALLY_UNDERVALUED is a stronger structural observation than a Low-confidence one. Always consider the confidence rating alongside the primary assessment.
Why this is not advice
The Value Detector assesses microstructure — the current shape of the order book. It does not know the runner's form, fitness, going preference, trainer intentions, or any of the countless factors that determine racing outcomes. A runner can be structurally POTENTIALLY_UNDERVALUED in the order book for reasons entirely unrelated to its chances of winning — large lay-side institutional orders, exchange mechanics, or even deliberate market manipulation.
The tool is useful for identifying structural anomalies that your own observation may corroborate. It should never be the sole basis for a trading decision.