Equity

Question 1

What is Equity?

Answer 1

• Our share of the pot expressed as a %
• Reflects frequency our hand/range wins at showdown
• If no future action, Pot x Equity = EV
• If all-in with $400 pot and 56%, EV = $224
• Could be a win, break-even, or loss, depending on context: how much we’ve put in pot

Question 2

Where does Equity come from?

Answer 2

• If GTO, equity distributed by position
• BB loses a lot, SB a little, BTN profits
• If we capture more than our equity we have an edge
• Denying our opponents their equity share is how we win at poker
• Making them fold is not the only way to do this
• We deny them profitable opportunities

Question 3

What is a Range Advantage?

Answer 3

• One player’s range (or likely range) has more equity than another
• Used to categorize flop scenarios
• Tighter range usually stronger (therefore has the Range Advantage)

Question 4

How Range Advantage Affects Play

Answer 4

• Affects flop primarily
• Player with advantage incentivized toward aggression - high equity encourages bigger pot
• Disadvantaged player incentivized to passivity (low equity, therefore smaller pot)
• Preflop range combined with board texture locates range advantage and informs strategy

Question 5

Static Flop

Answer 5

• Hand/range equities unlikely to change on future cards
• Few draws, usually A/K/Q high
• Some hands will have >90% equity vs range
• Favours PFR

Question 6

Neutral Flops

Answer 6

• Equities change a little but not substantially
• Some draws, usually Q/J/T high
• Hands >80% to <20% equity but rarely >90% or <10%
• Even the nuts (top set) vulnerable

Question 7

Dynamic Flops

Answer 7

• Volatile equities, likely to change dramatically on turn/river
• Many draws/overcards, usually 9-high or lower
• Few hands >70% or <30% equity
• Flopped nuts are vulnerable
• May give range advanrtage to PF caller

Question 8

Turns and Rivers

Answer 8

• Equities likely shift more heavily one way or other on turns
• Turn continuing ranges narrower, more precise
• Blank turn on dynamic board cuts draw equity in half
• Blank turn on static: strong flop hand stronger
• Draw hits neutral board: flop draws become nuts
• Also true on river; some hands now 0% equity

Question 9

Equity Realization

Answer 9

• Desire to continue hand, see more cards
• Check/call vs bet/raise
• We have a chance of winning showdown
• Important where raise may force us to fold
• PFR with AdTd and BB defends
• Flop 8d4h2s and BB checks
• Checking allows free turn with good equity but weak hand when we think CR is likely
• (Not necessarily saying ATs should check here)

Question 10

Equity Capitalization

Answer 10

• Desire to end hand and prevent more streets
• Bet/raise
• Major advantage: win dead money
• Relevant when equity low or vulnerable
• EG PFR with K6s and BB defends
• Flop 842r, BB checks
• Poor equity, few backdoors, so don’t mind folding to a CR
• Villain likely folds often to a bet, so capitalize
• Also applies to vulnerable nuts on flop

Question 11

Equity Retention

Answer 11

• How well equity is preserved if a hand gets called
• EG PFR and BB defends wide; flop K62
• Consider 44 vs 87s
• 44 > 87s going to flop (55% vs 30%)
• If we bet flop and get called, we’d rather have 87s: more turn cards let it pick up equity to barrel again vs CC
• Better equity retention makes realization easier
• Good equity but poor retention benefit by denying equity to villain - bet now

Question 12

Equity Denial

Answer 12

• Prevent opponent from realizing free equity
• If villain folds 25% Eq hand, we benefit
• Betting marginal hands vulnerable vs villain’s CF range
• Not necessarily forcing a fold, just preventing freeroll
• EG bet 55 on 7d4d2h to deny free card to: Ah6d, 9h8h, QdTs, Ac9c, KsTs

Question 13

Fold Equity

Answer 13

• The EV we gain through forcing folds
• Many villains overfold, particularly on T/R in big pots
• High pot + high fold eq = very profitable
• High pot + low fold eq = very profitable
• Low pot + high fold eq = profitable
• Low pot + Low fold eq = chip burning
• Need to understand likelihood of inducing folds

Question 14

Poled vs Merged Equity Distribution

Answer 14

• Top half of green range >80%
• Remainder has <25%
• All hands in blue are 45-50%
• Extremely common dynamic in poker

Question 15

Near-symmetrical equity distribution

Answer 15

• Both ranges contain hands with >90% and <30%
• Green’s range slightly stronger (as PFR)
• Frequent occurrence on dynamic flops

Question 16

Questions for reflection

Answer 16

• Where does my edge come from: making villain fold, or winning when they don’t?
• Am I frequently forced to fold hands with good equity postflop? Why?
• Do I hesitate to bet marginal hands on dynamic boards?
• Do I get tilted when I check and let villain catch up?