Briefly, I am analysing how competitions and games run and what can affect performance in those competitions. Each individual plays in multiple competitions one after each other and receives an overall rating that signals how well they are doing based on how many competitions they have played in so far and won.
I want to analyse the effects of winning and losing streak but don't know how to model them with the following variables I have.
(1) Dummy variable = 1, if the individual is currently on a winning streak, and =0 if the individual is currently on a losing streak. (A streak can be made up of just one competition, so if I play for the first time and win, that is classed as I am on a "winning streak").
(2) Variable that tells you how long you're current streak has lasted. However, it doesn't distinguish between winning and losing streaks. So a value of "5" here could mean a winning streak of 5 or a losing streak of 5, essentially it is how long you're current streak has lasted.
I want to interact these terms to best analyse the impact on performance of such streaks, but I am having trouble interpreting the interaction term and especially the main effects term of (2) if it doesn't distinguish between good or bad streaks. I would like to ideally know how the length of a good streak affects performance and how the length of a bad streak affects performance.
Please, can someone offer any advice and interpretation?