Betting Simulators

There are many variants of these all over the internet. We picked two of them for you to explore. You will be asked to answer some questions about the simulations in a forum post on the next page

Betting Simulator #1

Betting Simulator #2

Understanding the Martingale

In the forum for this week (link on the next page), please answer these Martingale Strategy questions based on the Betting System Simulator #1 above.

Warm-up: Use the default settings, but change the “target profit” to $2000. Press “spin the wheel” a few times, until you see at least one example where you lost all your money and another example where you walked away with a $2000 profit. Explain the process by which the Martingale strategy fails and you walk away with nothing. In other words: in what situation is the Martingale strategy NOT successful?

For each of the following settings that can be adjusted in the simulation, explain briefly (a) what the setting does and (b) how changing this setting affects outcomes of the simulation:

• Target profit
• Table limit
• Bankroll
• Initial bet amount
• Number of runs (1–10000)

For example:

The setting "Type of Game" controls the type of Roulette that is used in the simulation: American roulette, which includes equal numbers of red and black pockets plus two green pockets numbered 0 and 00, respectively, or European roulette which does not have a 00 pocket.

How does a change to this setting affect the simulation? If you change the "Type of Game" to European roulette, you will have a slightly higher chance of winning each individual bet than if you use the American roulette setting.

To answer this question, you should play around with the simulation. Also feel free to reference course readings or Google other resources.