New ELO system score calculation on DotaPod.
ELO is a chess masters standard of scoring. Everyone starts with 1000 and based on your wins, losses, the opponents you faced, your rank increases or decreases accordingly.
The Elo rating system is a method for calculating the relative skill levels of players in two-player games such as chess and Go. It is named after its creator Arpad Elo (1903–1992, born Élő Árpád), a Hungarian-born American physics professor.
The Elo system was invented as an improved chess rating system, but today it is also used in many other games. It is also used as a rating system for multiplayer competition in a number of computer games, and has been adapted to team sports including association football, American college football and basketball, and Major League Baseball.
In general the Elo system has increased the competitive climate for chess and inspired players for further study and improvement of their game. However, in some cases ratings can discourage game activity for players who wish to "protect their rating".
Examples:
1. They may choose their events or opponents more carefully where possible.
2. If a player is in a Swiss tournament, and loses a couple of games in a row, they may feel the need to abandon the tournament in order to avoid any further rating "damage".
3. Junior players, who may have high provisional ratings, and who should really be practicing as much as possible, might play less than they would, because of rating concerns.
Selective pairing
A more subtle issue is related to pairing. When players can choose their own opponents, they can choose opponents with minimal risk of losing, and maximum reward for winning. Such a luxury of being able to hand-pick your opponents is not present in Over-the-Board Elo type calculations, and therefore this may account strongly for the ratings on the ICC using Elo which are well over 2800.
Particular examples of 2800+ rated players choosing opponents with minimal risk and maximum possibility of rating gain include: choosing computers that they know they can beat with a certain strategy; choosing opponents that they think are over-rated; or avoiding playing strong players who are rated several hundred points below them, but may hold chess titles such as IM or GM. In the category of choosing over-rated opponents, new-entrants to the rating system who have played less than 50 games are in theory a convenient target as they may be overrated in their provisional rating. The ICC compensates for this issue by assigning a lower K-factor to the established player if they do win against a new rating entrant. The K-factor is actually a function of the number of rated games played by the new entrant.
Elo therefore must be treated as a bit of fun when applied in the context of online server ratings. Indeed the ability to choose one's own opponents can have great fun value also for spectators watching the very highest rated players. For example they can watch very strong GM's challenge other very strong GMs who are also rated over 3100. Such opposition, which the highest level players online would play in order to maintain their rating, would often be much stronger opponents than if they did play in an Open tournament which is run by Swiss pairings. Additionally it does help ensure that the game histories of those with very high ratings will often be with opponents of similarly high level ratings.
Therefore, Elo ratings online still provide a useful mechanism for providing a rating based on the opponent's rating. Its overall credibility, however, needs to be seen in the context of at least the above two major issues described — engine abuse, and selective pairing of opponents.
Source:
http://en.wikipedia.org/wiki/Elo_rating_system
http://www.dotapod.com/viewthread.php?tid=5413&page=1&fromuid=2#pid68151