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Code for positive expected value decisions Aidan Wilson · Follow Published in Analytics Vidhya · 5 min read · Apr 🌧️ 3, 2024 -- Share
Introduction to Pot Odds and Equity
Pot Odds
Pot odds, simply put, are the relationships between the total pot 🌧️ size and the bet that you must call to see the next card. Pot odds explain the amount of money 🌧️ you will win for every dollar you put into it yourself.
To calculate pot odds, simply divide the amount of money 🌧️ you must call by the total pot size if you were to call. For example, if the pot size isR$100 🌧️ and you must put inR$50 to call, you would do:R$50/($100 +R$50). Which would give you pot odds of 1/3, or 🌧️ about 33%.