Neighbor Method Polling
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A French trader made millions betting on Trump's victory using an innovative polling method that proved more accurate than traditional polls.
The Neighbor Method Approach
- Don't ask people directly who they will vote for
- Instead ask "Who do you expect your neighbor to vote for?"
- People indirectly reveal their own preferences through this method
- More predictive than traditional polling methods
Implementation Process
- French trader commissioned a major US pollster
- Similar to how DNC/RNC commission private polls
- Specifically measured the "neighbor effect"
- Results showed overwhelming support for Trump vs traditional 50/50 polls
Why It Worked
- People are indirect and hesitant to reveal personal preferences
- Neighbor method captures:
- Individual's own preferences
- Their perception of what will happen
- Results showed "mind-blowing" favor toward Trump
- Predicted a Trump landslide vs media's "razor thin" predictions
Betting Strategy
- Identified mispricing in betting markets based on poll results
- Made specific bets on swing states
- Targeted states where polls showed closer race than reality
- Used neighbor method data to identify states with stronger Trump support
- Placed massive bets based on this conviction
Results
- Prediction proved correct
- Made significant profits from the bets
- Demonstrated potential superiority of neighbor method over traditional polling
- French trader concluded public opinion would have been better prepared if polls had used neighbor method
41:25 - 42:51
Full video: 01:01:23SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.