Each game is weighted equally regardless of the day it was played.
The weight of the game for the home/away/(or both if it's a neutral site) team is multiplied by the home/away/neutral weighting. If you think performance in home/away/neutral games is more indicative of a teams performance, make this weight larger.
This setting limits the impact of a lopsided win. For example, if you think that there is no difference between a 20 point win and 50 point win, consider entering 20.