Code for positive expected value decisions Aidan Wilson · Follow Published in Analytics Vidhya · 5 min read · Apr 6️⃣ 3, 2024 -- Share

Introduction to Pot Odds and Equity

Pot Odds

Pot odds, simply put, are the relationships between the total pot 6️⃣ size and the bet that you must call to see the next card. Pot odds explain the amount of money 6️⃣ you will win for every dollar you put into it yourself.

To calculate pot odds, simply divide the amount of money 6️⃣ you must call by the total pot size if you were to call. For example, if the pot size isR$100 6️⃣ 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 6️⃣ about 33%.