To overcome this problem, this study introduces a new idea of application research in the practical teaching of decision tree algorithm optimization, and accurately controls the influencing parameters by simulating the decision process theory, and uses it as the road map for index allocation, and then uses the decision tree algorithm to innovate and construct a system scheme. The test results clearly point out that in the context of the evaluation criteria, the new scheme has been significantly optimized in terms of accuracy and processing speed for a variety of challenges, showing stronger performance superiority. Therefore, in the application research of public physical education practice teaching in colleges and universities, the simulation scheme based on decision tree algorithm successfully overcomes the shortcomings of the traditional simulated annealing algorithm, and significantly improves the accuracy and operation efficiency of the simulation.