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