0
$\begingroup$

Poker players start with a fixed bankroll (bankroll) and play with a win-rate winRate (say measured in dollars per hour) and standard deviation of win-rate (sd).

How can I use the Wolfram Language to graph/simulate a poker player starting with bankroll and playing for, say, 100 hours (t = 100)?

If the total winnings ever dip below bankroll, the simulation result should just be $0 since the player has no ability to keep playing anymore!

Improve this question
$\endgroup$
4
  • 1
    $\begingroup$ Look at RandomProcess, using WienerProcess. That should get you started. $\endgroup$
    – ciao
    Commented Nov 7, 2019 at 1:49
  • $\begingroup$ You may want to incorporate the Kelly criterion , which maximizes the expected value of the logarithm of wealth (the expectation value of a function is given by the sum, over all possible outcomes, of the probability of each particular outcome multiplied by the value of the function in the event of that outcome). $\endgroup$
    – Jagra
    Commented Nov 7, 2019 at 12:12
  • $\begingroup$ Applying the Kelly bet sizing methodology (a proportional bet, sized relative to bankroll, risk, and signal noise at each sequence of play) protects a player from their bankroll ever going to 0. $\endgroup$
    – Jagra
    Commented Nov 7, 2019 at 15:00
  • $\begingroup$ what about buyins? $\endgroup$
    – DrMrstheMonarch
    Commented Nov 8, 2019 at 9:52

1 Answer 1

Reset to default
2
$\begingroup$ 
ListPlot[
 NestList[# RandomVariate[NormalDistribution[1.05, .1]] &, 100, 50],
 Joined -> True,
 AxesLabel -> {"Games played", "return (dollars)"}]

enter image description here

Or...

ListPlot[
 Table[
 NestList[# RandomVariate[NormalDistribution[1.05, .1]] &, 100, 50], 
 10],
 Joined -> True, 
 AxesLabel -> {"Games played", "return (dollars)"}]

enter image description here

The bankroll constraint is easily incorporated:

ListPlot[
 NestList[
  If[# > 60, # RandomVariate[NormalDistribution[1.05, .1]], 0] &, 100,
   50],
 Joined -> True,
 AxesLabel -> {"Games played", "return (dollars)"}]

Here the "bankroll constraint" is 60 (even though you start with 100). If your game ends if you ever go beneath your starting money, you will often stop fairly quickly.

Improve this answer
$\endgroup$
1
  • $\begingroup$ What has this to do with the poker, or the bankroll constraint? $\endgroup$
    – wolfies
    Commented Nov 10, 2019 at 4:08

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.