Quote:
Originally Posted by RustyBrooks
Defining a poker players advantage as an edge is kind of a weird concept. I've seen it done before and it seems forced.
The first question is, edge as a percentage of *what*? The total amount bet/risked by the player?
This is from a comprehensive poker learning glossary I'm working on
"Edge (Ej) – the advantage you have over another player. One quantitative definition is Edge = EV / (Risk Money or Bet amount). This is equivalent to the % of a dollar you win per dollar wagered. For a bet decision, the edge can be written as Edge = Pot Odds *eq - (1- eq). Tournament edge might relate to your ROI compared to the average ROI of the opponent field. It is sometimes advised to hold off an all-in bet early in the tournament in a marginal situation if you have a tournament edge so you can take better advantage of it later on."
"Example: In roulette, if you bet on red, say, with a wheel having 0 and 00, your chance of winning is 18/38 and the total return for a $10 bet is $20 or you win $10. Therefore, the house EV is EV = 20/38 * 10 – 18/38 * 10 = 20/38. Therefore, house edge = EV/Risk = (20/38) / 10 = 5.26%."
"For a poker example, Assume that villain makes an all-in bet of 50 into a 100 pot making the pot 150 giving you pot odds of 3 to 1. If you call you have a 30% chance of winning. Your edge is 0.30*3 – 0.70 = 20%. The positive edge occurs because the 30% equity is greater than the required minimum equity of Bet/(Pot+Bet)=50/(150+50) = 25%. "