WINNING BLACKJACK WITH REINFORCEMENT LEARNING

1. BLACKJACK SHARKS: AabidaMayet, Omar Bacerra, EserKaptan March 15, 2010 WINNING BLACKJACK WITH REINFORCEMENT LEARNING

2. WHAT YOU NEED TO WIN • Playing with mathematical probabilities • Betting with a progression system • Managing your money • Luck.

3. WHAT IS REINFORCEMENT LEARNING • Reinforcement learning is learning from interaction with an environment, from the consequences of action, rather than from explicit teaching. • Reinforcement Learning allows the machine or software agent to learn its behavior based on feedback from the environment.

4. BLACKJACK PLAYING • Possible blackjack hands: • First card is an A, second card is a 10, J, Q, or K • 4/52 for Ace, 16/52 for second part • = (4*16)/(52*52) = 0.0236 (or about 1 in 42) • First card is a 10, J, Q, or K; second card is an A • 16/52 for first part, 4/52 for Ace • = (16*4)/(52*52) = 0.0236 (or about 1 in 42)

5. WHY SINGLE DECK GAME IS BETTER THAN A MULTIPLE DECK GAME • You will be dealt more blackjack hands • The dealer is less likely to also have a blackjack hand and tie you • You are more likely to draw a good card when you double down on 10 or 11. • All single deck games are dealt face down.

6. TERMINOLOGY • Ace: playing card: a playing card that has a single mark on it. • Blackjack : an automatic winning hand containing both an Ace and a 10 value card. • Deck: pack of cards : a pack of playing cards • Ace five count: A simple card counting strategy that only counts aces and fives. • Cold deck: Refers to a deck with a bad ratio of cards for the player. • Push : Refers to the player and the dealer having the same total. Usually the player's bet is returned when there is a push. • Resplit : Splitting a second pair after receiving another pair after the initial deal. (Resplitting is often not allowed.)

7. RULES OF BLACKJACK (Rules of blackjack may vary) • The goal of blackjack is to beat the dealer's hand without going over 21. • Face cards are worth 10. Aces are worth 1 or 11, whichever makes a better hand. • Each player starts with two cards, one of the dealer's cards is hidden until the end. • To 'Hit' is to ask for another card. To 'Stand' is to hold your total and end your turn. • If you go over 21 you bust, and the dealer wins regardless of the dealer's hand. • If you are dealt 21 from the start (Ace & 10), you got a blackjack. • Blackjack usually means you win 1.5 the amount of your bet. Depends on the casino. • Dealer will hit until his/her cards total 17 or higher.

8. OPTIONS WHEN THE PLAYER RECEIVES ADDITIONAL CARDS • When the player receives additional cards, then his/her options are: stand, hit, double-down. • Stand: To decline another card. • Hit: To request another card. • Double Down / Doubling Down: To double the size of one's initial bet before taking one more card. Once a player doubles down, the player may receive only one more card. (http://www.dictionaryofgambling.com/gambling_terms/blackjack/d/)

9. STRATEGY CHART

10. HARD HANDS Hard Hands: Two starting cards that do not contain an ace. If you have eight or less, always hit. If you have Nine: Double if the dealer has 3 thru 6, otherwise hit. If you have Ten : Double if the dealer has 2 thru 9 - otherwise hit. If you have Eleven: Double if the dealer has 2 thru 10, Hit if dealer has Ace. If you have Twelve: Hit if the dealer has 2 or 3, Stand if the dealer has 4 thru 6, otherwise hit. If you have 13- 16: Stand if the dealer has2 thru 6, otherwise hit. If you have 17 - 21: Always Stand.

11. SOFT HANDS Soft Hands: When one of your starting hands contains an ace. If you have Ace 2 or Ace 3: Double if the dealer has 5 or 6, otherwise hit. If you have Ace 4 or Ace 5: Double if the dealer has 4 thru 6, otherwise hit. If you have Ace 6: Double if the dealer has 3 thru 6 - otherwise hit. If you have Ace 7: Stand if the dealer has 2, 7 or 8. Double 3 -thru 6, otherwise hit. If you have Ace 8 or Ace 9: Always Stand.

12. PLAY PAIRS If you have a pair of Aces or Eights: Always split. If you have a pair of twos or threes: Split if the dealer has 2 - 7, otherwise hit. If you have a pair of fours: Split if the dealer has 5 or 6 , otherwise hit. If you have a pair of fives: Double if the dealer has 2 thru 9 , otherwise hit. If you have a pair of sixes: Split if the dealer has 2 thru 6 , otherwise hit. If you have a pair of sevens: Split 2 thru 7 - otherwise hit. If you have a pair of nines: Split 2 thru 6, and 8 or 9. Stand if the dealer has 7, 10 or Ace.

13. CONCLUSION • To play blackjack, low casino advantage will be beneficial for the player. Card Counting is a great advantage for blackjack. In the cases of winning setting a goal also prevents you going broke. • Chances to win are 50-50. • To win play 3:2 instead playing 6:5 of single deck Blackjack because the 6:5 payout increases the house advantage. • Player has opportunity to drawn more cards by not doubling down. • Player most likely decreases losses by Doubling down with hands of 10 or 11 and only against dealer up cards of 3, 4, 5 or 6. Player prefers to double down when the dealer has a 4, 5, or 6 up card. • Player will win more in the long run if he/she doubles down. • The high dealer bust rate plus the cards you draw that improve your hand.If the player has a larger than normal bet out, pass the double down.

14. QUESTIONS??? • THANK YOU.