Quote:
Originally Posted by 5th Suit
I have no point to make.
here's an example: OTR, we cover villain
OTR pot is 400, villain checks, hero bets 250, villain jams 750 ai.
500 to win 1400.
risk / risk + reward says break even equity is 26%. In other words, we need to call and win 26% of the time or more for the call to be profitable (yes?).
I am confused as to why in this spot do you add your call to the 1400 in the denominator.
thanks,
If you decide to call you gonna put in your 500$ and the pot will become 1900$. The question now becomes, how frequently do you need to win to get back your 500$. If you multiply 0.263 by 1900$ you gonna get 500$, in other words, if you win exactly 26.3% of the time you are getting your 500$ back. If you win more frequently than 26.3% you make some profit
And you already know the formula how to calculate 26%.
Now let's imagine we don't add our call to the 1400$, we'll end up with 500/1400, which is 35.7%. But if you win 35.7% of the time you are winning on average 0.357 * 1900$ (because the whole pot is 1900$) = 678$ which is a lot bigger than your 500$ call. This calculation doesn't make much sense.