The Neural Strategy
The Neural Strategy
Silverthorne
The
Neural Strategy
SILVERTHORNE
PUBLICATIONS
The reader should be advised that games of chance and sports betting are illegal in certain
jurisdictions. The author and the publisher advise the reader before engaging in any
gambling activity to determine the legality of such activity in his or her state or other
jurisdiction.
COPYRIGHT © 2008
Silverthorne Publications, Inc.
848 N. Rainbow Blvd., Suite 601
Las Vegas, Nevada 89107
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World rights reserved. No part of this publication may be stored in a retrieval system,
transmitted, or reproduced in any way, including but not limited to photocopy, photograph,
magnetic or other record, without the prior agreement and written permission of the
publisher.
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TABLE OF CONTENTS
CHAPTER PAGE
Introduction 4
Roulette 45
Baccarat 59
Craps 71
Winning at Gambling 86
Playing to Win 98
3
INTRODUCTION
Casino games are probably one of the least studied and most written about money
making strategies in the modern world.
There have been a number of books written on casino games, but with the possible
exception of blackjack, most of the authors apply little, if any of the scientific approach to
the games.
The authors will invariably take one of two approaches to discussing such casino
table games as craps, roulette and baccarat. For approach one, they will discuss the rules of
how to play the game, and then dismiss the possibility of winning because of the casino
edge over the player. For approach two, they will present a recommended playing strategy
without any evidence whatsoever that it works.
Most of the so-called respectable books, such as are found in book stores, follow the
first approach. This is a noncontroversial way to handle the subject of casino gaming: since
most experts agree that the games can't be beaten, they dismiss the possibility of winning
out of hand.
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For approach two, which many of the fly-by-night operators delight in selling, a
"winning" system is presented which the author claims he has used to beat the game. No
evidence is presented that the system works, or explanation offered as to why it should
work. Considering the almost universal worthlessness of this second category, I fully
expect to see a pamphlet out any day promoting the bio-rhythm approach to winning at
roulette.
For several years, I have devoted considerable time and resources to analyzing
casino games and to devising systems and strategies which do allow the player to win.
Hopefully, I have helped pioneer a third approach to casino gaming, one which recognizes
the validity and risk of the house edge, but which uses analysis, testing and actual time
playing to test and develop strategies to overcome the house edge.
When I first began studying and analyzing casino games nearly all my research was
done by playing and recording my experiences at casino games. Some of you may recall
that for my first book on craps I used a craps table set up in my home for testing thousands
of craps decisions. This research resulted in The Silverthorne System - A Casino Craps
Winning System.
This system is just as valid today as it was when it was developed almost four years
ago, and on a recent trip to Las Vegas, my partner and I used it with great success to relieve
the casinos of some of their cash.
As I continued to develop and test gambling systems, I discovered the use of the
computer. Actually, I have used computers since the late 1960s, but I did not begin
applying computer technology to testing gambling systems until fairly recently. And I have
never abandoned what computer people call "real time" testing, which in the case of casino
games, means actually using the system in casinos.
5
The Neural Strategy is the product of a combination of computer testing and using
the strategy in the casinos. I believe that it meets my self imposed test of recognizing the
risk of the house edge, but using a disciplined and understandable approach to overcome it.
In many ways, commodity futures markets and the options markets are very much
like the casino games of chance of roulette, craps and baccarat (I have excluded blackjack in
this comparison as blackjack is more properly characterized as a game of skill, although this
difference in character does not mean that it is less risky than the games of chance, even if
played skillfully).
Statisticians consider the futures and options markets as well as the casino games of
chance to be zero-sum games. In a zero-sum game the amount won by one player is lost by
another, so that the sum of all wins and losses is zero.
Study of this concept concerns a branch of mathematics called the Theory of Games
and is not limited to parlor games or gambling games; it has been applied to economic
planning, business management, studies of social behavior and even war.
In a two person zero-sum game, you can not have two winners. There is only one
winner and one loser. This is analogous to the futures markets in that each seller of a
contract must be matched by a buyer. If the seller makes money on the contract, the buyer
will lose money.
With casino gaming, a player matches his skills and bankroll against the house. If
the player wins a game, the house must lose.
6
The rules of this game are complicated by transaction costs, charged to all the
participants as a fee for being allowed to play the game. With the futures and option
markets, the largest transaction cost consists of the brokerage fees. With casino gaming, the
"fee" is the house edge the casino has over the player.
In either case, these costs can considerably raise the risk of the game. I recall
analyzing a three month trading period in which I had broken even, using a complex
commodity futures trading system, which entailed a considerable amount of trading. I was
virtually even after three months of trades, yet looking at the gross amounts I had received
from my trades, the indications were that I should be up about $5,000. Analyzing all of the
trades showed that the transaction costs were about $5,000 for this three month period. In
other words, the broker had made $5,000 for doing very little work, while I had spent many
hours analyzing and tracking my positions, only to break even. In this case I had won the
zero-sum game (I had won more than my opponents) but still managed not to come out
ahead because of these transaction costs.
With casinos, the transaction costs come from the mathematical advantage the
casino has over each bet. Like the brokerage houses, this advantage occurs as the casinos
do not pay off bets at full correct odds. By withholding a little of the payoff, they extract a
commission on each winning wager.
The effect of these transaction costs is considerable. Numerous studies have shown
that about ninety percent of the commodity and options markets speculators lose money. I
don't have any reliable statistics for casino gamblers, but I suspect the percentage is about
the same. And the primary reason for these losses is the transaction costs.
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Participation in casino gaming also is growing, but in general there has been very
little valid research to help the casino gamblers. And this is really sad, because in many
ways the casino gamblers have a decided advantage over the futures market speculators. I
have been a successful speculator and a successful gambler, and without a doubt, winning at
casino gaming is easier, and as for me, at least as pleasant as participating in the futures
markets.
Let's look at some of the advantages that casino gaming offers over futures
speculating.
Risks are more manageable with gaming than with speculating. If I bet the pass line
at craps, I know that the house will pay me even money on a winning wager, or remove my
chips if the bets loses. This bet has a definable risk for a fairly short duration. If I have
studied craps, I know that the casino has a built-in transaction cost for this wager of 1.4%.
And I know that in no case will the casino require me to put up more money just to maintain
my position. I can not be locked into this wager, nor into a pattern of having to wager the
pass line, and I can leave any time I please. Some of these advantages are not shared by our
brethren in the futures markets.
For one thing, we can't even be sure how much we are risking when we take a
position. Let's say that we call Joe, our broker, and tell him to buy ten Standard and Poors
500 Index contracts at market. We won't know what our cost of this position is until Joe
calls us back with a confirmation that we bought the contracts at such and such price. In
many cases, we experience slippage where our cost is slightly higher than we anticipated, or
if we are selling, our sales price is lower than we expected. We can try to correct this by
entering limit orders where we tell Joe to only buy at a price of 430 or better, but then we
may miss a rally and not buy at all. Most traders will tell you that slippage is not that great a
factor in determining your success or failure, but the plot thickens.
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Assume we bought our positions at more or less the amount we expected, and now
we are ready to sell. If the trading market for our particular option is thin (too few buyers),
we may not be able to sell at the price we want, or even sell when we want because there
may not be any buyers available.
If we have a major market disruption, such as Black Monday on October 19, 1987,
when the Dow index fell 508 points, we may not be able to sell at all.
And we are constantly at the mercy of the brokers, regulators and commodity
exchanges. After Black Monday, the margin requirements for trading options were raised
by most brokerage houses from an average of about 5% to about 30%. If you were trading
with $10,000 used to meet the margin requirements, you would have found your entrance
fee, in the form of margin, increased six times to $60,000. Many speculators, faced with
such a sudden and unanticipated demand for an increase in the capital employed, would
have been forced to liquidate their positions win or lose. This was not the same game as
when you started.
In extreme cases, a regulatory agency may restrict the rights you thought you had
with a particular security. The Options Clearing Corporation, for example, may, under its
authority, prohibit the exercise of options before the expiration date. Such an action could
lock you into a loss position.
There is no question of a legal American casino ever changing the rules in the
middle of the game. You can determine your bet amount before wagering. The payoff of
the wager is certain if the wager wins. You can't be locked into a situation where your bet is
frozen for an indefinite time period and you may be forced to put up more money to even
keep your wager. And you will always be allowed to collect a winning wager at a known
transaction cost.
In many ways, the casino wager is a safer wager than a wager made in the futures
markets.
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Yet the methods of analyzing the futures, options, stock and bond markets continues
to proliferate as speculating or investing in these markets is considered sophisticated and
"smart" while casino gaming, with the possible exception of blackjack, are considered
"sucker" games and by inference, the participants not serious about their speculating.
Some of the technical indicators being used to analyze securities and futures markets
are: Andrews' Pitchfork, Black-Scholes Index, Bollinger Bands, Commodity Channel Index,
Correlation Analysis, Cycle Analysis, Delta Factors, the Demand Index, Fibonacci and
Time Series Forecasts, Gann Angles and Grids, Japanese Candlesticks, Linear Regression
Analysis, Multiple Regression Analysis, Momentum Tracking, Moving Averages, Open
Interest Measures, Point and Figure Graphing, Price Oscillators, Price Rate of Change
Measures, Price and Volume Trends, Quadrant Lines, Relative Strength Comparisons and
Indexes, Speed Resistance Lines, Standard Deviation Analysis, Stochastic Oscillators, the
Swing Index, Time Series Forecasts, Tirone Levels, Trendlines, Volatility Indicators,
Volume Oscillators and Zig-Zag Analysis.
And what do we have for analyzing casino games? Many experts refuse to analyze
the casino games, as they believe that they are unbeatable. And charlatans make amazing
claims for untested and in many cases, darn-right dangerous systems and unproven money
making schemes.
The approach I have used to develop the Neural Strategy is just as thorough as the
researchers of securities and futures markets and will apply some of the same techniques to
analyzing the casino games of chance.
In approaching this assignment, I assumed that I knew nothing except the rules for
roulette, craps and baccarat. I did not start out with any preconceived notion of what it takes
to beat these games.
10
My hypothesis was that a technique or series of techniques could be developed to
win, betting on the even money bets offered by these games.
With such a massive and open-ended problem facing me, I turned to our electronic
friend, the computer, to assist me with the analysis. I anticipated that this project would
probably require "playing" millions and millions of casino decisions, and only with a
computer could a problem of this scale be managed in a reasonable time framework.
To handle this analysis, I used a powerful new method of dealing with data called
Neural Networking.
Neural networks are an advanced type of artificial intelligence in which the system
teaches itself to solve problems. The internal methods by which a network performs its
self-teaching had their origins in the ongoing studies of animal and human intelligence. The
process entails furnishing the program with a series of input data that leads to an output
event, which in turn can be used to form a prediction. The neural network then takes the
series of inputs, computes it own outputs and compares them to actual results. In the
process of trying to improve its ability to predict, the neural network makes changes in its
approach as it "learns" from its own mistakes. This operation is repeated as many times as
is necessary for the network to train itself and reach an optimal level in its ability to predict.
One of the advantages of using a neural network over other methods of analysis is
that neural networks start out as essentially blank slates. Everything they learn has to be
taught from scratch. This seemed to be the perfect approach for analyzing casino games
from scratch as no prejudices would come with the software, and the analysis would really
be from scratch.
11
Every variable occurring in the casino games of roulette, craps and baccarat was
examined by the network. The patterns of decisions, whether to bet or skip a particular
decision, the amount of bankroll to be risked, the stop losses for each session, target wins
for a session, the size of bets, the sequence and pattern of wagers were all considered from
ground one.
And the results surprised even me. This extensive testing showed that these casino
games can be beaten, using a fairly simple system. This did not surprise me. What did take
me aback was what the network decided were the most important variables for winning: the
patterns of decisions and how to bet each pattern of decisions.
As we shall see, the strategy which was developed, using first the computer to
simulate the results of playing each game, and then actual playing of the games in casinos,
is most impressive. We achieved a session win rate of 84% playing craps, roulette and
baccarat. And, with this high level of winning sessions, casino gaming can become a most
profitable endeavor!
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PROBABILITIES AND PATTERNS
The Neural Strategy was developed using even money wagers at craps, roulette and
baccarat. For craps, these wagers were the pass line and the don't pass line, for roulette, red
and black, and for baccarat, banker and player.
Many gambling systems are based on observing the outcome of casino wagers and
then either betting with the trend or betting for the trend to end.
Assume that we are sitting at a roulette table and we observe that the wheel has
landed on a red number for the last three spins. If we are of the school of thought that this
signals that another red number is due, we will probably bet for red to repeat.
However, we may believe that any event occurring in a casino game is of limited
duration and decide to wager that a black number shows, ending the streak of red numbers.
Neither of these systems has any statistical validity as the occurrences of red or
black numbers on a roulette wheel are what statisticians call independent events.
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In general, two or more events are said to be independent of each other if the
occurrence of one in no way affects the probability of the occurrence of any of the others.
To give another illustration, let us determine the probability of drawing two kings in
succession from a deck of 52 ordinary playing cards, without the first card being replaced
before the second is drawn. Since there are four kings, the probability of getting a king on
the first draw is 4/52. Given that the first card drawn is a king, the probability of getting a
king on the second draw is 3/51, reflecting that we only have three kings left out of 51
cards. In this case, the probability of drawing the second king is dependent on the outcome
of the first draw. We could calculate the probability of getting two kings in a row as:
4/52 x 3/51 = 1/221.
If we had replaced the first card before the second was drawn, the probability of
getting a king on the second draw would have been 4/52 (the same as getting a king on the
first draw), and we could compute the probability of getting two king in a row under these
circumstances as:
4/52 x 4/52 = 1/169.
Since the probability of getting a king on the second draw is now 4/52 regardless of
what happened on the first draw, these draws are independent. Generally speaking, two or
more events are independent if the occurrence of one in no way affects the probability of the
occurrence of any of the others.
If two events are independent, the probability that they will both occur is the product
of their respective probabilities. With a balanced coin, the probability of getting heads is
1/2 and the probability of getting two heads in two flips is 1/2 x 1/2 = 1/4. The probability
of getting four heads in a row is 1/2 x 1/2 x 1/2 x 1/2 = 1/16.
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Returning to our example of three red numbers in a row, if we assume that the
probability of spinning a red or black number is 1/2, then the probability of the next spin
being another red is 1/2. Likewise, the probability of the next spin being a black number is
also 1/2. Because the result of each spin is independent of each other spin, we find that the
previous spins have no affect on the outcome of the next spin.
If we examine this problem from a difference angle, and ask what the probability is
of getting four red numbers in a row, we find that it is 1/16, the same probability of flipping
four heads in a row with a coin. If we ask what the probability is of spinning at least one
black number in four spins, we find that probability is 15/16.
This is the reason that blackjack is considered a game of skill while the other casino
games are considered games of chance. With skill, we can alter our strategy as the
probabilities change in a blackjack deal, while with the games of chance, we should
probably keep the same strategy throughout a game. (Technically, baccarat is also a game
of skill as the probabilities change as cards are dealt, but because of the mechanics used for
playing the game, it can for all practical purposes be treated as a game of chance, which we
have done).
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In each of the games of chance we will examine, the long-term probability of
winning with continuous play is zero. Mathematically we can prove this, and for this
reason, most experts pronounce these games as unbeatable.
The reason these games have been considered unbeatable is because the casino has
an unvarying edge over the player in each game.
The house advantages for these games are shown on the next page. If we play any
of these games on a continuous non-stop basis, it is a foregone conclusion that we will
eventually lose the game because of these unrelenting house advantages.
Many persons underestimate the effect of the house advantage. Take the game of
craps for instance. If the player knows that the house edge over the pass line wager is only
1.4%, he may assume that if he played with a $100 bankroll, he should lose only 1.4% of a
$100, or $1.40. The error of this line of reasoning is that the 1.4% applies to every wager
made at the table. A player with a $100 bankroll, betting $5 on the pass line, will wager
about $300 per hour if he only makes one pass line bet per dice decision. His loss rate will
be over $4 an hour (300 X .014 = 4.20). If he plays for about twenty four hours, making the
same $5 wager on the pass line, with only one bet per decision, he will probably lose his
entire $100 bankroll. This is the insidious power of even a very small house edge.
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CASINO HOUSE ADVANTAGES
With this information in hand, you might wonder why we even bother to analyze
these games, if it is a foregone conclusion that with continuous play we must eventually
lose the game.
The crux of the above statement is continuous play. While a computer might play a
game continuously for thousands or even millions of decisions, we humans don't play that
way. We can control our play by, for example, stopping at advantageous points, or by
pulling down our wagers, to counter a losing streak. A typical statistician will tell you that
these adjustments will have no effect on the long-term outcome and that it is impossible to
overcome the built-in house advantage.
17
In starting this project, I came with my own set of prejudices in that I have regularly
and consistently beaten these games that theoretically can't be beaten; therefore I knew that
a carte blanche acceptance of the unbeatability of the games was a faulty premise. I also
was aware of the similarities between these casino games and the commodity futures
markets, in which I have also had some degree of success. In short, I knew that the games
could be beaten, but I wanted to research the possibilities of doing this without bringing my,
or others preconceived notions into the examination, so that the results would be as
unbiased as possible.
Using a Neural Network approach, where the network knows nothing except what it
learns in the course of examining data, we proceeded to let the computer play at the games
of craps, roulette and baccarat. And play it did.
Fairly early on in this process, the program realized that there was little predictive
value in knowing what the last decision in a game was. If the last roulette decision was a
red number, this had no predictive use for the program. This is exactly what we would
expect, since each decision occurs independently.
However, the program became fascinated with patterns occurring in these games
and began to zero in on identifying and betting patterns of decisions. In examining patterns,
the program looked at and tested the following aspects of patterns:
a) The types of patterns of decisions. We all know that no matter how unlikely
an event may be, there are times when it will occur. The program examined all patterns of
decisions and identified repeating patterns of decisions, alternating patterns of decisions,
and such unusual patterns as paired doublets as the most common patterns that we humans
would recognize as a pattern. If we were recording decisions in a craps game, with a "p"
representing a pass line decision and a "d" representing a don't pass decision, we could
represent these patterns as follows:
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REPEATING PATTERN pppppp
ALTERNATING pdpdpd
PATTERN
PAIRED DOUBLETS pp dd pp dd
Incidentally, these patterns were also identified as the most common types of
patterns occurring which will affect a player's wagering strategy.
c) Frequency of patterns. If patterns occur very infrequently, then they are of little
use in attempting to overcome the house advantage. On the other hand, if the identified
patterns occur fairly frequently, then gearing our betting to a recognized pattern can be an
enormous benefit. In checking for pattern frequency, the neural network concluded the
following:
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2) The Paired Doublet Pattern could be treated the same as a Repeating
Pattern for all of the casino games. In other words, if this the Paired Pattern
is recognized, then we may treat it the same way as the Repeating one.
d) Identifying Patterns. It is one thing for a computer program to tell us that it has
found patterns; it is quite another to translate this information into a practical and useable
form. If, for example, the software is identifying patterns using hindsight, then this
information has little applicability in casinos, as anyone can beat these casinos if "hindsight
betting" was allowing. We asked the system to give us a reliable way of identifying these
patterns so that this information would be of real use in a casino setting. After much
hemming and hawing (our neural net had a mind of its own and didn't want to be limited in
the number of decisions it was allowed to observe before pronouncing that a pattern was in
progress), our system decided that only two decisions need be observed for a pattern to be
identified on a slightly higher than random basis.
e) Betting a Pattern. Our neural network was pleased with itself for having done
so well with finding patterns, then we threw it another curve. We asked it to maximize the
return possible to an investor betting these patterns. In effect we were saying, "Ok, now we
know about these patterns, so what? How do we make money with this information?
We also added some pretty severe constraints to our computer's bankroll. Since our
program had no sense about money, we wanted to make sure that when it started wagering,
it had to work within the confines of a limited bankroll and a limited amount of time
playing each session. We didn't want the computer to be given free rein to the extent that it
might proudly tell us that if we wagered with a million dollars for forty
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days and forty nights without stopping that we would win X amount. Other than giving the
system a time and expense budget, it was allowed to bet as it wanted and to compare the
results of each attempt so it could learn to improve its performance.
Incidentally, all of the pattern as well as the betting tests were conducted on a real
time basis, where the computer was constantly faced with new decisions for each game,
generated by a random number process. Many persons testing gambling systems have used
static tests where one set of data, such as 30,000 recorded craps decisions, is used for testing
the system. We knew that any set of fixed data contains it own biases and that our network
would identify them as the best patterns. While they may be the best way to bet if you could
play against the same decisions over and over, the real world doesn't offer this opportunity,
so we used random numbers. If you are not familiar with this concept, think of it as the
closest thing to a real life situation, where every roll of the dice, every spin of the wheel or
every draw of a card presents a new and not necessarily expected outcome.
The neural network explored numerous possibilities which may be grouped in the
following general categories:
2) Increasing wagers after wins for two, three or even more wagers.
The optimum results were attained when bets were increased moderately after
losses within an identified pattern.
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f) Determining the length of a betting series. After determining that we should
raise our bets moderately after losses, the issue became how many times we should be
willing to increase our wagers, the optimal increase for each wager and the procedures to
follow after winning an increased wager. This became the crux of perfecting a winning
system for each of the games selected. Because pattern recognition was the strongest with
roulette and baccarat, testing showed that the same betting series and betting rules could be
used for both these games, and that this would produce optimal winnings for these games.
For craps, a number of special rules were devised, in that craps did not respond in
the same way to pattern identification and betting.
__
After much fine tuning, we became increasingly satisfied with the results we were
obtaining. After all of the rules for pattern recognition and betting were identified, our
system was asked to play with these sets of rules for millions of decisions. The results of
this additional testing were rather spectacular, and high winnings rates were achieved in
each of the games. Our winning and losing rates were:
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GAME PERCENT PERCENT OF
OF LOSING
WINNING SESSIONS
SESSIONS
Roulette 86.4% 13.6%
Weighted
Average 84.0% 16.0%
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Suppose that we have ten dice decisions where the Pass Line (p) occurs 50% of
the time, and the Don't Pass (d) also occurs exactly 50% of the time. A purely random
pattern might look like this:
pdppdpddpd
In each of these examples, there are five pass and don't pass decisions. What our
research has shown us is that when a non random pattern, such as the strings of
consecutive passes and don't passes in the second pattern above, occur there is a slightly
greater chance that the series will continue for up to seven decisions than pure
randomness would indicate.
This does not refute the laws of probability. What it does show is that certain
patterns of casino decisions, such as a repeating pattern, have slightly greater durability
than we would expect if such a pattern was purely random. Quite frankly, we really don't
have an explanation for this. But we have confirmed that it can be exploited most
profitably in the casino games of roulette, craps and baccarat.
If this sounds a little strange to you, consider the results of a seasonality study of
the stock market, conducted by The Institute of Econometric Research. Their study
spanned 64 years of market data and showed that the first trading day of the week (except
for holidays, always a Monday) was the loser of the week. In contrast, the last trading day
of the week produced the most dramatic profit.
If you had owned stocks only on the first trading day of the week for a 64 year
period, you would have lost more than 99% of your investment. If you had invested
$10,000 in 1927, by 1990 it would be worth a mere $50.
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In contrast, if you invested only on the last trading day of the week, then your
$10,000 investment made in 1927 would have mushroomed to $2.77 million by 1990.
We offer no explanation for this phenomenon either. For our purposes we really
don't care why there are certain aberrations in patterns of casino decisions, nor why this
pattern of daily seasonality occurred in the stock market. This is not a theoretical
exercise. Our purpose is to find and exploit any phenomena which will give us an
additional edge in making more money. And the Neural Strategy does just that.
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THE NEURAL STRATEGY
There are many ways to bet in casino games, and all betting methods boil down to
three major categories:
c) Keeping the bet the same, regardless of the outcome of previous wagers.
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Each of these approaches was tested, and the most effective approach to betting was
increasing bets moderately after losses.
In general, gambling systems which advocate raising wagers after losses may be
extremely hazardous to the player's bankroll in that the player may be lulled into a sense of
complacency by the numerous small wins the systems produce, and then shocked when the
player's entire bankroll is lost in the course of a few consecutive losing bets.
The most common system calling for increasing wagers after losses is the
Martingale, sometimes called the "double-up" system. This system is easy to use and falls
into the category of systems which are very hazardous to the player's bankroll.
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If the Martingale series could be extended for two to three more wagers, so that the
betting series becomes 5 10 20 40 80 160 320 640 1280, he would improve his odds of
winning each session somewhat, but at a much greater risk, for now he must risk $1,280 on
his final wager in the hopes of recouping the $1,275 lost and thus winning a net $5.
Casinos are well aware of the Martingale system, and they impose house limits on
the size of the largest wager allowed so that a player could not, if he were so inclined,
continue to double each successive wager until he eventually won.
The Martingale system is defective in two ways. First, it risks too much in
comparison to the amount which may be won. A $320 wager to win $5, or worse yet, a
$1,280 wager risked to win only $5, is not a reasonable risk. Secondly, because of the laws
of probability, this system does not have any edge in selecting the decisions for wagering.
In this case, our player wagered red only, which will eventually cause him to lose his entire
series of wagers.
Increasing your wagers after a winning wager has the advantage that you will never
be called upon to wager larger and larger amounts to win a relatively small amount.
However, increasing wagers after winning has a large disadvantage in that when you do
have a losing wager, the amount lost will be large and may cost you all of your previous
winnings.
Many players throw up their hands at either of the above approaches and simply
wager the same amount on each bet. This approach may keep you in the game longer, but
unless some advantage over the casino is gained, this approach will eventually lose.
Recognizing the drawbacks of each approach, the neural net found the following
series of wagers to be the most effective betting series tested: 5 8 13 20 35 50 75 100.
28
With this series of wagers, the bet is raised one level after a loss and lowered one
level after a win. However, if we have two wins in a row, or we win two out of three
wagers, the next wager is decreased by two levels.
The effectiveness of the Neural Pattern of betting, betting the same regardless of
previous wins and losses (called flat betting) and doubling a wager after a win (called a
parlay) are demonstrated in Table 1.
Roulette 1 2 3 4 5 6 7 8
Decision
(r=red, Total Won
b=black) b b r b r b r r
>
Flat -10 -10 +10 -10 +10 -10 +10 +10 -0-
Betting
($10)
Parlay -10 -10 +10 -20 +10 -20 +10 +20 -10
Betting
($10)
29
In this example, all players bet only red, and won four red decisions out of a total of
eight roulette decisions. The Neural Pattern was the only approach to have any winnings,
with a win of $13. Flat betting broke even, while Parlay betting had a loss of $10.
It is instructive to consider the size of the average wager with each approach. The
average size wager for the Neural Pattern was $8.13, for Flat betting, $10 and for the Parlay
approach $13.75. With the Neural Pattern we wagered the least amount of money and had
the highest win.
Controlling the amount wagered while maximizing the winnings is the essence of
the Neural Pattern. Those of you with a mathematics background will notice that the Neural
Pattern resembles a Fibonacci Series, wherein each wager is equal to the sum of the
previous two wagers.
It will be helpful to review each of the wagers made using the Neural Pattern as
shown in Table 1. Table 2 shows each wager made, with amount won or lost summarized
and the betting rule used.
30
TABLE 2. ANALYSIS OF NEURAL PATTERN WAGERS
2 r b 8 -8 -13 2
3 r r 13 +13 -0- 2
4 r b 8 -8 -8 3
5 r r 13 +13 +5 2
6 r b 5 -5 -0- 4
7 r r 8 +8 +8 2
8 r r 5 +5 +13 2
The betting rules used (corresponding to the rules numbers shown in the last column
of the table) for the Neural Pattern are:
1. The starting wager for any series of wagers is $5, the lowest level.
4. If two consecutive wagers are won, or if two out of three wagers are won,
the next wager is two levels lower.
31
The wager for decision 1 was for $5, as this was the first wager in the series (rule 1).
Since the first wager lost, we raised the second wager to $8 (rule 2). The decision 2 wager
also lost, so, relying on rule 2, we raised our wager one more level, to $13 for wager 3.
Winning the third wager, we lowered our wager for decision 4 by one level. We lost the $8
wager on decision 4, so for decision 5, we once again raised our wager, per rule 2. Decision
5 won, so that we lowered our wager for decision 6 by two levels, as we had won two out of
the last three wagers (rule 4). We lost decision 6, so that we had to raise our wager one
level for decision 7. Having won decision 7, we lowered our wager one level to $5 for
decision 8 and won that decision also.
Looking at the Total Won or Lost, we see that our greatest loss in this series was
$13 and our largest win was $13. We also note that winning two out of three decisions
allowed us to drop our wager rapidly, so that with a moderate number of wins, we were able
to reduce the size of our bet rapidly.
The Neural Betting Pattern has built-in safe guards to reduce the size of your
wager as rapidly as possible, while allowing for large enough wagers that you will gain
an advantage from successive wins.
Session Bankrolls
Using the Neural Betting Pattern is not limited to making a $5 minimum wager. It
can be used by $2 bettors as well as $25 bettors. Table 3 shows the betting patterns for $2,
$5, $10 and $25 bettors and the session bankroll required for each level.
You will note that the amount required for a session has been rounded in the last
column for convenience in exchanging your cash for chips. For instance, the total of all the
wagers in the $5 betting pattern is $306, which has been rounded to $300. Likewise, the
total for the $2 betting pattern is rounded to $120.
32
TABLE 3.
SELECTED NEURAL BETTING PATTERNS
$2 2 3 5 8 14 20 30 40 122 120
You may recall a discussion about patterns of decisions in the previous chapter
when we discussed Repeating, Alternating and Paired Doublet patterns of decisions. The
purpose of identifying a pattern is to give us an edge in applying the Neural Betting
Pattern, so that we may win a higher amount of wagers than we are statistically expected to
win. We found after extensive testing that with the Repeating and Alternating Patterns we
could "pick" a betting pattern that would give us a statistically higher probability of
winning. We also found that the Paired Doublet Pattern could be safely treated the same as
a repeating pattern for bet selection.
33
The first step in selecting a wagering plan, is to identify the pattern we are facing in
a given game. To identify a pattern we observe two decisions before beginning to wager.
The pattern formed by the two decisions tells us how we should wager for the next five
levels using the Neural Betting Pattern.
Assume that our game is baccarat, and we represent a player win as a "p" and a
banker win as a "b". Table 4 shows the four patterns we can have in two decisions and how
we will respond to each pattern.
Once we have begun betting our selected pattern we will continue to bet this pattern
until we have lost the fifth level bet of our betting series. For a $5 bettor, this is the $35
bet, for a $2 bettor, the $14 bet, for a $25 bettor, the $175 wager. If we have lost all five
levels, we will then switch our pattern to the opposite of the wager we have been making to
this point.
34
TABLE 4. SELECTION OF BETTING STRATEGY
Pattern Observed (b =
banker, p = player) Betting Strategy
In testing this approach to betting, one of the numerous variations tested was the
procedure to follow after losing the level 5 bet. One approach which was tested extensively
and which was found to reduce the chance of winning was that of skipping wagers on the
next two decisions after losing the level 5 wager and redetermining a betting pattern based
on the skipped decisions. Use of this procedure actually reduced the winnings. We
mention this because there are several gambling systems currently being sold which
recommend skipping. Our testing confirmed that there is absolutely no benefit to skipping
decisions.
35
The optimal way to handle the loss of the level 5 wager is to immediately switch to
betting the opposite decision, starting with the level 6 wager. If you have been betting
player in baccarat, you will switch to banker, red in roulette will switch to black and don't
pass in craps switches to pass line.
There are some additional rules to be followed after switching sides at level 6.
1. Reduce the betting level two units after a win. If you win the level 6
wager, the next wager is the level 4 bet. For a $5 bettor, using the
appropriate betting series, the bet following a win of the $50 wager is $20, a
win of $75 is followed by a $35 wager, and a win of $100 is followed by a
$50 wager.
2. The wager following a win after the reduction described in rule 1 above
is dropped one more level. If this wager also wins, the next wager is
reduced by two levels. If the wager following a win loses, the next wager is
raised one level.
36
TABLE 5. NEURAL WAGERS AFTER LOSING LEVEL 5 WAGER
Bet Made Outcome Amount Bet Won or Lost Total Won or Lost
1 r b 35 -35 -35
2 b r 50 -50 -85
3 b b 75 +75 -10
4 b b 35 +35 +25
5 b b 20 +20 +45
6 b b 8 +8 +53
In constructing Table 5 we have ignored all bets and decisions occurring prior to the
loss of the $35 wager. All of these wagers would have been bet on red so that the loss of
the $35 wager on red represents our final wager on red at this time. On decision 1, we lost a
$35 wager betting on red as the outcome was black. For decision 2, we immediately began
betting on black and continued to wager on black throughout this series.
The outcome of decision 2 was red so that we lost this wager. We continued to bet
black for decision 3 and raised our wager to $75. This wager won, so that the wager
following this win was reduced by two levels to $35.
We also won the decision 4 wager for $35; therefore decision 5 we dropped our
wager one more level. The $20 decision also won so that our final wager was reduced two
more levels to $8.
37
Notice that even though we will drop our wager two levels following a win on a
level 6, 7 or 8 wager, two consecutive wins still provide us with adequate winnings. As
shown in the table, we won the $75 wager for decision 3 and also won the $35 decision 4
wager. The win of these two wagers more than offset our losses of the decision 1 and 2
wagers and helped prepare us to recoup any prior losses.
If we had lost the $8 decision 6 wager, we would have resumed raising our wager by
one level and the next wager would have been $13. If this bet was also lost, our next wager
would have been $20, and if it lost also, it would be followed by a $35 wager. All of these
wagers would have been on black, as this was the pattern established when we originally
lost our level 5 $35 wager. At this point, we are in the same situation as when we switched
from betting red to betting black. We have lost a level 5 wager betting black, so we will
now switch back to red. Our next wager will be $50 on red.
This betting strategy may seem somewhat complicated at first, but it is very easy to
use as we will demonstrate shortly.
Determining the time to quit a game is easy, as the game is over when the target
profit for the game has been reached. Target profits are always equal to one-third of the
session bankroll. As shown in Table 3, the session bankroll for the $5 bettor is $300, so that
the target win is $100. A $25 bettor, playing with a session bankroll of $1,500 would plan
on terminating a game when his winnings had reached $500. A $2 bettor, playing with a
$120 session bankroll would look for a $40 win as a target stopping point.
38
Whenever a session is lost is also an immediate signal to terminate. Additional cash
will never be added to a losing session so that it can be continued. Instead, the session will
be terminated and if the player is wise, he will take a break from playing before resuming.
Table 6 summarizes the average number of decisions per game and also shows the
shortest number of decisions to complete a game as well as the longest number of decisions
required to complete a game. The average number of decisions per hour is also shown, as
well as the average time it takes to complete each game.
39
The length of the average game in minutes is dependent upon where the game is
played and the conditions under which the game is played. For craps, 60 decisions per hour
is about average for an uncrowded table. If the table is very full and covered with bets, the
number of decisions may only be 40 or so an hour.
With roulette, the game length is based on the rapid play of American roulette
wheels. The European games are much more leisurely, averaging about 30 spins per hour
while the American wheels will average 100 spins an hour.
If minimizing your playing time is your major concern, American roulette is your
best bet. If you want to win with the lowest average number of decisions, you will play
baccarat.
40
Summary of the Neural Strategy
Putting together all of the components of the Neural Strategy is surprisingly easy.
There is a separate chapter devoted to each of the casino games where the strategy is used,
so if you are slightly overwhelmed at this point, we shall rectify this.
The general Neural Strategy flows very easily in actual use, as our goal was not to
develop a theoretical strategy to play on computers, but a realistic money making system.
1. The Betting Series. Use of a betting series is basic for employing the
strategy. The series for a $5 bettor is: 5 8 13 20 35 50 75 100. In starting a
game, always begin with the lowest wager in the series. Table 3 shows the
series used for $2, $10 and $25 bettors. Other than varying the size of the
wagers, all other aspects of the strategy remain unchanged.
a. If the observed decisions repeat such as pp or dd, we will bet that they
will continue to repeat.
b. If the decisions alternate, we will bet that they will continue to alternate
until we lose a wager. After we lose a wager, we will wager that the
dominant pattern will continue, which will be the opposite decision of our
losing one. If we bet p d p and our third wager on p loses, we will switch to
betting d and continue to bet d within the rules of the system.
41
3. General Wagering Rules. The wagering rules will always be followed
using the Neural Strategy. These rules are:
a. Always begin every game with the lowest level wager in the betting
series.
b. If a wager loses, the following wager will be raised by one level. If in the
basic series we lose an $8 wager, the next wager will be $13.
c. If a wager wins, the next wager will be one level lower, except when we
have won two wagers in a row or won two out of three wagers.
d. If two consecutive wagers are won, or if two out of three wagers are won,
the next wager is two levels lower.
e. These rules always apply when we are wagering less than the Level 5
wager and have not changed our wager because of a loss of a Level 5
wager. If we have changed wagers, then special rules shown below are
used.
42
a. Upon losing a Level 5 wager, we will immediately began betting the
opposite of the wager previously made, that is, we will switch our betting
pattern. If we have been betting d in craps, we switch to p, r in roulette, we
switch to b, b in baccarat, requires a change to p.
b. We will reduce our betting level by two levels after a win. If we wager a
Level 6 bet of $50 and win, our next wager is a Level 4 wager of $20. If we
lose a wager, we will raise our bet one wager, the same as is specified by the
general betting rules.
c. Following two wins, we will reduce the next wager only one level. If we
bet $50 and win, our next wager will be $20 (reduced two levels). If the $20
wager also wins, our next wager is $13, one level less than $20.
e. Anytime we have had five or more decisions after switching and then lose
a Level 5 wager, we should switch back to the previous betting pattern, even
if we have not had the three wins called for above.
43
b. We will keep track of our chips (more on this later) and quit when we
have won one third of the session bankroll. It will take us, on the average,
from about 35 minutes to an hour of play to accomplish a win. There are
special circumstances, which we will discuss shortly, under which we may
decide to ride a winning streak a bit longer and win more than one third of
our session bankroll in a single game.
If we are betting the don't pass in craps and see three come out passes in a row, we
may be tempted to switch sides or at least to skip the next decision. All of these strategies
have been thoroughly tested, and Neural Strategy, as presented, is the best approach. You
will not be correctly playing the strategy with these, or any other variations.
As we shall see when we explore each of the casino games where the Neural
Strategy is used, the strategy is very effective as is and requires no modifications or
improvements.
44
ROULETTE
There is a pocket on the wheel corresponding with each of the numbers. The
background for each of the numbers 1 to 36 is colored alternately either red or black. The
zero and double zero backgrounds are colored green.
The wheel turns on a center axis and is designed so that a ball can be spun on the
inside of a wall constructed within the wheel, so that after a number of rotations the ball will
eventually come to rest in one of the pockets.
Roulette wheels will have either one or two betting areas. Most of the wheels in the
United States have one betting area on one side of the wheel with one dealer, while most of
the foreign wheels have two betting areas, with one on each side of the wheel, and use three
dealers.
45
A spin begins when a dealer pushes the
wheel in one direction and spins the ball
in the opposite direction. The pocket the
ball drops in determines the outcome of
the spin.
First, the usual casino chips such as are used at craps and baccarat may be used at
roulette. When using the Neural Strategy, you will normally use casino chips.
In addition, special roulette chips are offered in the United States version of roulette.
These chips have no denominations on them but have different colors. When you buy into
a table, say for example, buying twenty $1 chips, the dealer will hand you twenty chips of
the same color, say red. You will be the only player using red chips at this table, and for
you each red chip is worth a dollar. When you buy in, the dealer places a disc indicating a
value of a dollar in the red chip rack, so that the value of your chips is recorded.
If you were to hand the dealer another twenty requesting $0.25 chips, he would give
you chips of a different color.
46
The roulette chips have no value anywhere but at the roulette table where you are
playing. When you have finished playing roulette you should exchange your roulette chips
for casino chips before leaving the table. The casino cashier will not cash in roulette chips
as the cashier has no way of determining the value of the chips, since it can vary from
player to player.
In the European version of roulette, everyone plays with casino chips which can lead
to some confusion when several players have wagered on the same bet and all of their chips
look alike.
Bets may be divided into two groups, inside bets and outside bets. Inside bets are
made on the numbers or combinations of individual numbers. There are thirty seven or
thirty eight different numbers in the betting area (depending of whether we are playing the
single or double zero version of the game), and wagers can be made on individual numbers
or combinations of numbers.
A single number wager is paid off at 35 to 1. A two number wager pays 17 to 1 for
a win. A three number wager pays 11 to 1, a four number bet, 8 to 1, a five number wager,
6 to 1, and a six number wager pays 5 to 1.
47
We are not concerned with inside bets using the Neural Strategy. Outside bets, as
their name implies, are made in areas on the outside of the betting area. Wagers can be
made on sections of numbers (dozens) such as numbers 1 to 12, 13 to 24 and 25 to 36. A
win on a section wager pays 2 to 1.
Column bets are made by placing a chip in one of the three boxes corresponding to a
column of numbers printed on the betting area. If the number spun is in the column
wagered, the bet pays off at 2 to 1.
Our concern is with the even-money bets. There are three types of even money
wagers.
Bets on red or black win if the outcome of a spin is a number with the same colored
background.
Bets on even or odd win if the ball lands on a number which has the same
characteristic as the wager made.
The house advantage in roulette changes dependent upon the version of the game
offered. In this country, two zero roulette is the most common version, in Europe and South
America, the single zero version is prevalent.
48
In double zero roulette in Nevada, the house advantage is 5.26% of all wagers,
except for the five number wager encompassing the zero and double zero where the house
edge is about 7.9%. In the Nevada double zero game, every wager on the table including all
even-money wagers, loses when a zero or double zero shows. In the Atlantic City version
of the double zero game, you will lose only one-half of an even-money wager when a zero
or double zero shows, reducing the house edge for even-money wagers to 2.63%.
In the International single zero version of roulette, the house edge against the even-
money wagers is only 1.39% when the en prison rule is used. With the en prison rule, the
house only takes one-half of your even-money wager when the zero shows, or you may
chose to have your wager "in prison" for the next wager, which means that you must make
the same wager for the next spin. This is obviously a very good deal for the even-money
bettor as the house edge is reduced by 74%, as compared with the Nevada double zero
game.
Every roulette table has maximum and minimum wagers. These limits will change
from casino to casino and will even change on the same table, as casinos typically raise the
minimum wagers during high demand times, such as weekends and in the evening. Typical
limits in Nevada and Atlantic City range from a minimum of $1 to $5 to a maximum of
from $500 to $2,000. Usually the lowest value chips which may be purchased are the $0.25
chips although some casinos offer ten cent chips.
49
At a $1 minimum table, the smallest amount a player can place on an even-money
wager is $1.
When you first come up to a roulette table you should ascertain the table limits
before you sit down. More than one player has been embarrassed by sitting down at a $5
minimum table and attempting to make a $1 wager. If the table minimum is too high, do
not change your betting strategy and wager higher amounts to accommodate the table. You
should find a table which has a low enough minimum wager that you can play according to
your plan, and not the casino's.
50
At one point, we were almost reconciled to giving up on finding a way to beat this
game and confining our testing to the Atlantic City version of the game (with a house edge
half that of the Nevada game).
The reason that the Neural Strategy works so well with all versions of roulette is that
roulette is a very streaky game, and therefore it is particularly susceptible to the Neural
Strategy. By streaky, we mean that strings of decisions where either red or black dominate
are more common in roulette than streaks in either baccarat or craps. If we ranked the three
games, we would find that roulette has the most streaks, with baccarat next and craps last.
With this characteristic, the Neural Strategy can be used with devastating
effectiveness against roulette.
51
TABLE 7. SUMMARY OF TWENTY 5.26% ROULETTE SESSIONS
52
Reviewing Table 7, we notice that the average length of a session was a little over
thirty minutes with an average win of about $52.00. The average hourly win for these
twenty sessions was $93.
We won 17 games and lost 3 games, for a session win rate of 85%, slightly less than
our overall average win rate of 86.3%.
If we look only at the 17 winning sessions, we find that the amount won per winning
game was $100.82, very close to our target cutoff of $100 per game.
The total amount of playing time for these twenty sessions is a little over eleven
hours. If we played roulette for somewhat less than four hours per day, these sessions
would represent three days of play.
Every one of the sessions shown in the table were played in a mechanical fashion
exactly in accordance with the Neural Strategy. In using the strategy it is not uncommon to
have games where the decisions are very choppy, and it is difficult to find a stable pattern.
The games with a greater number of decisions generally have been choppier. Sessions 8,
11, 12, 13, 15, 17 and 20 were longer than normal and were games where the pattern betting
system ran into rougher sailing. A higher number of loss games occurred with these choppy
games, as we lost 2 out of 7 of these games, for a win rate of only 71%. In contrast, the
remaining 13 smoother games had only one loss, for a win rate of 92%.
53
had called the game off after about 60 decisions. At this point in the game we were down
just a few dollars, and we could have saved ourselves some time and money by doing this.
Other than calling a difficult session over even if you have not reached the target
win, there is no reason to depart from the standard playing strategy.
54
TABLE 8. ANALYSIS OF ROULETTE GAME
Outcome Amount Bet Win-Loss Bankroll Amount Won
1 b - - 300 NA
2 b - - 300 NA
3 b b-5 W-5 305 +5
4 b b-5 W-5 310 +10
5 b b-5 W-5 315 +15
6 0 b-5 L-5 310 +10
7 b b-8 W-8 318 +18
8 00 b-5 L-5 313 +13
9 r b-8 L-8 305 +5
10 0 b-13 L-13 292 -8
11 r b-20 L-20 272 -28
12 r b-35 L-35 237 -63
13 r r-50 W-50 287 -13
14 b r-20 L-20 267 -33
15 b r-35 L-35 232 -68
16 b r-50 L-50 182 -118
17 r r-75 W-75 257 -43
18 b r-35 L-35 222 -78
19 r b-50 L-50 172 -128
55
Outcome Amount Bet Win-Loss Bankroll Amount Won
20 b b-75 W-75 247 -53
21 b b-35 W-35 282 -18
22 r b-20 L-20 262 -38
23 b b-35 W-35 297 -3
24 b b-20 W-20 317 +17
25 b b-13 W-13 330 +30
26 b b-5 W-5 335 +35
27 b b-5 W-5 340 +40
28 b b-5 W-5 345 +45
29 b b-5 W-5 350 +50
30 b b-5 W-5 355 +55
31 r b-5 L-5 350 +50
32 00 b-8 L-8 342 +42
33 b b-13 W-13 355 +55
34 b b-8 W-8 363 +63
35 r b-5 L-5 358 +58
36 b b-8 W-8 366 +66
37 b b-5 W-5 371 +71
38 b b-5 W-5 376 +76
39 b b-5 W-5 381 +81
40 r b-5 L-5 376 +76
56
Outcome Amount Bet Win-Loss Bankroll Amount Won
41 b b-8 W-8 384 +84
42 b b-5 W-5 389 +89
43 b b-5 W-5 394 +94
44 r b-5 L-5 389 +89
45 b b-8 W-8 397 +97
46 b b-5 W-5 402 +102
The left hand column in the table shows the decision number, with each number
representing one spin of the wheel. This game took about 28 minutes.
The next column shows the Outcome of each spin. The third column represents our
wager and the amount bet. For instance, decision 13 shows that we wagered $50 on red.
The fourth column Win-Loss shows the outcome of each spin, where W equals a win and
L equals a loss. The symbol W-8 shows an $8 win.
The fifth column, Bankroll shows our bankroll at all times during this game. And
the right hand column shows our cumulative win or loss after each decision.
We began the game by observing decisions 1 and 2. Since the outcome of both
decisions were black, we began betting the black pattern. We continued betting black until
decision 12 when we lost our Level 5 wager for $35. We switched to betting red with
decision 13 and continued to wager red through decision 18.
57
Through decision 18 we had made six red wagers and accomplished little as we lost
a Level 5 $35 wager on decision 18. Even though we had not won three red wagers (Neural
Strategy general rule) we switched sides again and began wagering black with decision 19.
Anytime that we have had five or more decisions after switching and then lose a Level 5
wager, we should switch back to the original betting pattern, even if we have not had the
three wins called for by the general strategy.
An important feature of the Neural Strategy is that it has a high success ratio in
finding the dominant side of even-money wagers and keeping us on the dominant side most
of time.
This game was ended when, on decision 46, we reached our target profit of $100.
The Neural Strategy is a very successful betting and winning strategy for roulette.
We have confined our testing and playing to the Nevada double zero game, which has the
poorest odds for the player out of all the versions of roulette. If you have a chance to play
the Atlantic City versions of the game or the international versions, you should do at least
as well and probably better.
If you play roulette with the en prison rule, your wager will be frozen when a zero
shows. The easiest way to handle the betting series is to ignore the zero. In other words, if
your wager is for $13 and a zero shows and the next spin loses, raise your wager one level
in accordance with normal betting procedures even though you have wagered $13 for two
consecutive decisions.
58
BACCARAT
Description of the Game
Baccarat is a card game which was originally a European game invented in Italy.
There are different versions of the game currently played in Europe such as chemin de fer
and baccarat en banque. We are only interested in the American version of baccarat.
There are two varieties of baccarat offered in the United States, baccarat and mini-
baccarat. The games are the same, the only difference being the size of the tables, number
of casino employees used and the rituals followed in playing the game.
Regular baccarat is played at a large table seating up to twelve players with three
dealers. To attract high rollers, the casinos have imbued this game with an aura of glamour.
The dealers do not wear standard casino uniforms but are dressed in tuxedos. A bevy of
beautiful and sharply dressed women sit around the table, smiling at customers and looking
altogether winsome. These women are known as shills and are there to attract players.
59
The baccarat playing area is usually in a
special roped off section of the casino,
adding to its allure. This may have put off
certain players who feel that the game is too
sophisticated for them. But baccarat is
really a very simple game.
The formal version of baccarat also has higher betting limits, with the usual
wagering limits ranging from a $20 minimum to a $2,000 maximum.
Mini-baccarat is located on the main floor of the casino and is played at a table
resembling a blackjack table, staffed by only one dealer. The minimum wagers at mini-
baccarat are usually $2 to $5, and therefore this version is better suited for the Neural
Strategy.
In baccarat, tens and face cards are valued as zero, Aces are counted as 1, and all
other cards are counted at their face values. There are two or three cards in each baccarat
hand, and the highest value of a hand is 9. To determine the value of a hand where the total
value of the cards exceeds ten, you will subtract ten from the hand total. For example, a 7
and a 5 total 12, which is valued as a 2.
60
Here are some other examples of baccarat hands and their values:
2 and King 2
7 and 5 2
9 and Ace 0
7 and 8 5
6 and 5 and 8 9
The rules of the game are printed clearly and are available to all players at the table.
It is not necessary for a player to learn these rules because the dealer acts in accordance
with rules without consulting the players. All a player really needs to know is how to place
a wager on either player or banker, which are the two wagers allowed.
PLAYER RULES
6-7 Stands
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BANKER RULES
3 1-2-3-4-5-6-7-9- 8
10
4 2-3-4-5-6-7 1-8-9-10
5 4-5-6-7 1-2-3-8-9-10
6 6-7 1-2-3-4-5-8-9-10
7 STANDS
Hands dealt a total of 8 or 9 on the first hand are called naturals and are automatic
winners if there is no hand equal to or higher than the hand. If the player hand's first two
cards total 8 and the banker's total 7, player wins without any additional draws.
If both two-card hands total the same natural, it is a tie and there are no additional
draws.
With other totals, the rules have to be consulted to determine whether a third card
will be drawn. The player hand must always act first which gives an advantage to the
banker hand.
When the player hand holds a 1-2-3-4-5-10 it will always draw a card, except when
the banker hand is a natural, which causes an immediate loss for the player hand.
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The banker hand will always draw to a low hand of 0-1-2 unless the player's hand is
a natural. The rules in the chart show the other rules for banker's drawings.
An interesting situation occurs when the player draws to a low total versus a
banker's total of 3, 4 or 5. The banker hand may have the player hand beaten without
drawing, but if the rules call for it, the banker hand must draw. As an example, if the
player's hand is 3-10-Ace, for a value of 4 and the banker's hand is 2-3 for a value of 5,
banker still must draw the third card, even though he has player beaten by standing pat.
In either the baccarat or mini-baccarat version of the game, the dealer handles all of
the rules of play, and it is not necessary for a player to learn these rules. There are a number
of rituals followed in regular baccarat which are easy to learn should you decide to play this
version of the game.
Because the player must act first and because the banker rules are more favorable to
it, the banker hand has an advantage over the player hand. To compensate for this, the
casino will charge a commission of 5% on all banker hand winnings.
Bank wins 50.68% of all bets and loses 49.32% of the time. The player hand wins
49.32 of its bets and loses 50.68 of its wagers. The house advantage over a bet on banker is
1.17%, after deducting the five percent commission. The house edge over player hands is
1.36%. The advantages are quite small, even less than the pass line and don't pass wagers
disadvantage of 1.4% in craps.
In baccarat and mini-baccarat ties result in standoffs with neither hand losing. There
is nothing in baccarat comparable to the zero and double zero of roulette, where all hands
lose.
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Commissions on banker bets are collected when all cards have been dealt from a
shoe or when a player decides to leave a table. In the mini-baccarat game, with a $2 or $5
minimum wager, smaller chips are used so that commissions may be paid on winning
banker bets. With a $2 minimum wager, ten cent chips will be used (5% of $2 is ten cents)
and with a $5 minimum, twenty-five cent chips are used.
2 57 +101 57
3 48 -246 48
4 51 +102 51
5 39 +100 39
6 41 +100 41
7 40 +101 40
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Session Decisions Won or Lost Length (in minutes)
8 53 +101 53
9 17 -297 17
10 49 +105 49
11 52 +101 52
12 38 -236 38
13 19 -286 19
14 62 +101 62
15 48 +104 48
16 62 +103 62
17 70 +105 70
18 55 +104 55
19 41 +103 41
20 57 +102 57
Table 9 shows that the average length of a session was about 47 minutes and that we
won an average of $28.40 per session. The average win rate was about $36 an hour.
We won 16 games and lost 4, for an average win rate of only 80%, less than our
overall average win rate of 82.9%.
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If we consider only the 16 winning sessions, we compute the average amount won
for these sessions as $102.06, just slightly over our target win of $100.
Our average loss for the four losing games was $266.25 per game. The amount
spent playing these twenty games was just under sixteen hours. If we played baccarat for
four hours a day, this would represent four days of play.
This series of sessions does not show baccarat in its best light as our average amount
won per game was only a little over $28, whereas our overall average for all baccarat
sessions was $47.16 per game. In other words, if this series had equaled our average, we
would have won $943, instead of only $568. I mention this in case you compare these
twenty games with the twenty games shown for roulette in Table 7 and decide that you
never want to try the Neural Strategy at baccarat. The typical results for baccarat are much
better than the series presented here, but in a series of only twenty games you may be
significantly above or below the averages.
Because we did not attempt to handpick the games shown in Table 9, you have seen
the games just as they happened, which is a more honest approach to presenting this
information than selectively presenting games played.
Each of these games were played in a mechanical fashion without varying from the
Neural Strategy. In each of the games where the Neural Strategy is used, it is very
important that you not vary significantly from the strategy and certainly not start trying to
guess the next bet. Use the strategy as it has been presented, and you will find that your
wins will come in a satisfactory manner.
To assist you in learning exactly how to apply the Neural Strategy in baccarat, we
have presented the results of a game played in Las Vegas in tabular form in Table 10.
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The left hand column in the table shows the decision number, with each number
representing a hand of baccarat. This game lasted for 50 minutes.
1 p - - 300 -
2 p - - 300 -
5 t p-5 - 303 +3
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Outcome Amount Bet Win-Loss Bankroll Amount Won
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Outcome Amount Bet Win-Loss Bankroll Amount Won
The second column from the left shows the Outcome of each hand. The third
column Bet-Amount shows how we wagered and the amount bet. For example, decision
13 shows that we wagered $13 on player. The fourth column Win-Loss displays the results
of each hand, with W indicating a win and L equaling a loss. The symbol W-8 shows an $8
win.
The fifth column Bankroll tracks our bankroll throughout the game. And the right
hand column Amount Won tracks our cumulative winnings (or loss) after each hand.
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We began the game by observing two hands. We made no wagers for decision 1
and 2, but instead observed a p p pattern. On decision 3 we began wagering for p to repeat.
We continued wagering on the player hand throughout this game as we never lost a Level 5
wager ($35 in this case) and therefore did not switch sides. This is not uncommon and
happens about one-third of the time.
If we had lost a $35 (Level 5) wager, we would have switched to betting banker and
continued betting banker in accordance with the Neural Strategy rules. We would have
used the same approach as was discussed for roulette on page 46 with respect to the switch
to banker. We would have continued betting banker until we had won at least three banker
hands and then lost a Level 5 banker wager or until we had played at least 5 banker hands
and then lost a Level 5 wager.
There were five ties in this game (indicated by a "t" symbol), and of course, we
neither won nor lost on these decisions.
Out of 44 hands, a total of 24 resulted in player wins. Excluding the 5 ties, player
won 62% of the hands with a win or loss decision.
The Neural Strategy has a high success ratio in finding the dominant side of even-
money wagers and keeping us on the dominant side most of the time.
We ended this game after decision 44 when our target win of $100 was exceeded.
We encourage you to try baccarat using the Neural Strategy. You will find it a
pleasurable and hopefully profitable experience.
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CRAPS
Description of the Game
Craps is a game played with a pair of dice on a large table with a high board around
its perimeter. The layout printed on the table shows the possible craps wagers. We are only
interested in the Pass Line and the Don't Pass wagers with the Neural Strategy.
Craps bets are made with casino chips, and before entering a game, it is necessary to
change your cash into chips. To buy into a table, place your cash on the table in front of one
of the dealers at the ends of the table. The dealer will hand your cash to the boxman who
will count it and drop it into a slot in front of him. The cash falls into a dropbox under the
table, sometimes called the coffin. The dealer will place an equivalent
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amount of chips in front of you on the table. You should promptly pick up the chips and
place them directly in front of you in the rails built into the sideboards of the table. Chips
should not be left on the table unless they are a wager.
Before the shooter has thrown the dice for the first time, no point has been
established. It is at this time that wagers may be made on the pass line and don't pass
wager. A roll when no point is established is called a Come Out Roll. After a point has
been established, a dice roll is called a Point Roll. It is important to distinguish which type
of roll is occurring as pass line and don't pass bets, also called line bets, are normally made
only before a come out roll. Also these line bets win and lose differently on come out rolls
and point rolls.
It is easy to determine the type of roll. A large disc (usually white) is positioned on
each end of the table. If the disc nearest you is outside the area where the point numbers are
printed on the table, it is a come out roll. If the disc is placed on a point
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number box, it is a point roll. If, when you begin play at a craps table, and a point roll is in
progress, you should wait until a point has been made or lost and it is a new come out roll
before making a line bet.
A pass line bet is made by placing chips in the pass line area. The pass line betting
location is the area surrounding the betting layout and closest to the player standing at the
table. A pass line wager should be made before the dice are rolled on a come out roll.
If the outcome of the come out roll is a 7 or 11, the pass line wager wins even-
money.
In any of these cases, when a 7, 11, 2, 3 or 12 is rolled, no point has been established
and the next roll is still a come out roll.
If the outcome of the roll is a point number of 4, 5, 6, 8, 9 or 10, then this number
becomes the point. The white marker disc is moved to the box for the point number. The
pass line wager is not affected by this roll. The dice will continue to be rolled until either a
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7 is rolled or the point number is rolled. If the 7 is rolled first, the shooter is said to have
sevened out, and the pass line wager loses. If the point number is rolled before a 7, the
shooter has made his point, and the pass line wager wins even-money.
After the point has been made, or the shooter has sevened out, the process begins
again with a new come out roll at which time new pass line wagers may be made.
The pass line wager has its greatest advantage on come out rolls. Out of the 36
possible combinations of a pair of dice, 7 and 11 can be rolled is eight ways, while a craps
number of 2, 3 or 12 can only be rolled four ways. On come out rolls, a pass line wager
would win, on the average, eight times out of 36 rolls, while only losing four times out of
36. On the come out roll, the pass line wager has an advantage over the house. However,
once a point has been established, the house has an advantage over the pass line wager, as a
seven can be rolled six ways out of 36, which is more than any of the point numbers. The
house edge after come out rolls is so substantial that it cancels the player's advantage on
come out rolls, and gives the house an overall edge over the pass line wager of 1.4%.
Incidentally, the casino will allow a player to make a pass line wager after a come
out roll, when a point has already been established. You can see that this is a foolish wager,
as without the advantage of the come out roll, the pass line has very poor prospects of
winning.
A don't pass bet is made by placing chips in the don't pass area, directly behind the
pass line betting area. Don't pass wagers can only be made before a come out roll.
If the outcome of a come out roll is a 7 or 11, the don't pass wager loses.
If the outcome of the come out roll is a 2 or 3, the don't pass wager wins even-
money.
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If a the outcome is a 12 (a 2 in Northern Nevada), the don't pass wager neither wins
nor loses.
If the outcome is a point number of 4, 5, 6, 8, 9 or 10, then this number becomes the
point and the marker disc is moved to the appropriate point box. The dice will continue to
be rolled until either the point is made or the shooter sevens out. If the point is rolled first,
the don't pass wager loses. If a 7 is rolled before the point number, the don't pass wager
wins and is paid even-money.
On the come out roll, the don't pass wager is at its greatest disadvantage. The don't
pass wager can lose if a 7 or 11 is rolled, but can win only if a 2 or 3 (3 or 12 in Northern
Nevada) is rolled. It has eight ways to lose with a 7 or 11 and only 3 ways to win with a 2
or 3. However, after a point has been established, the advantage swings overwhelmingly in
favor of the don't pass wager as a seven can be rolled more ways than any point number,
and seven is the winning number for don't pass wagers after the come out roll. If the 12 was
not barred by the house, the don't pass wager would have an advantage over the house. By
barring the 12 (2 in Northern Nevada, which has the same effect), the house advantage over
the don't pass wager becomes about 1.4%.
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Before beginning play on a table, it is a good idea to check the plaque next to the
dealers at the end of the tables for maximum and minimum wagers accepted. Table limits
change from one casino to the next and even change within the same casino. In fact, your
favorite table's limits may go up in the higher demand times of evenings and weekends. It
pays to check the limits before beginning play. If you do make a mistake and start to play at
a $25 minimum table, and you are a $5 better, do not change your betting strategy to fit the
table. Just leave. There are plenty of craps tables around to accommodate the size of your
bankroll.
In testing the general strategy at craps, we could not achieve the winning rates that
we reached with roulette and baccarat because craps is choppier than either of these games.
By choppier we mean that it is less likely to establish a clear trend and continue with this
trend for at least a limited number of decisions. Extensive testing of the craps game showed
that trends of don't pass decisions are more common and more reliable than trends of pass
line decisions. A number of techniques were used, but the easiest to use and the most
consistent strategy was to bet only don't pass for the first five levels of wagers and then to
switch to pass line with a Level 5 wager loss. We also found that when a string of decisions
with don't pass dominating was broken, that is, pass line had become dominant, pass line
wins were more likely to continue to dominate for at least a few more decisions.
We will not observe any craps decisions to select a betting pattern. We will
begin wagering don't pass and continue to bet only don't pass until we
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lose a Level 5 wager ($35 wager for a $5 bettor). After losing the Level 5
wager we will immediately switch, without skipping any decisions, to
wagering on the pass line. We will continue to wager pass line in
accordance with the general rules for the Neural Strategy (rules are listed on
pages 34-36).
With this change to the strategy rules, craps sessions can be beaten with an 84% win
rate.
Reviewing Table 11, we can see that the average length of a playing session was
about 51 minutes with an average win of $52.25. This works out to about a dollar a minute,
playing with a $300 bankroll.
We won seventeen games and lost three, for a session win rate of 85%, which is
slightly higher than our average win rate of 84%.
If we look only at the 17 winning sessions, we find that the average amount won per
winning game was $110.18 which is slightly higher than our target of $100 per session.
The total amount of playing time was slightly over seventeen hours. If we played
craps for somewhat more than four hours a day, these sessions would represent four days of
play.
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All of these sessions were played using the modified rules for craps; that is, we
started every session wagering only on the don't pass side and switched to pass line only if
we had lost a Level 5 wager.
1 60 +102 60
2 63 +106 63
3 45 +105 47
4 61 +100 61
5 59 -243 59
6 38 +102 38
7 19 -285 19
8 56 +96 56
10 70 +115 70
11 35 +106 35
12 48 +108 48
13 47 +109 49
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Session Decisions Won or Lost Length (in minutes)
14 30 -300 30
15 46 +122 46
16 44 +112 44
17 42 +129 42
18 51 +149 51
19 48 +105 48
20 41 +109 41
to complete for a $98 win. This was one of those games where we could not find a stable
pattern. In these cases, we feel that many times it is better to quit at some point prior to
winning the target $100, even though this is a deviation from the strategy. The Neural
Strategy works well most of the time, but on those occasions where no pattern seems to
become established, or at least not the one we are wagering, sometimes it is better to
terminate a session than to continue to fight for every win.
On the other side of the coin, we seem to have gotten a little carried away with game
18. Our notes reflect that we had a continued winning streak on don't pass and decided to
prolong the game, within certain parameters for prolonging winning games, which we will
discuss shortly.
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TABLE 12. ANALYSIS OF CRAPS GAME
Outcome Bet-Amount Win-Loss Bankroll Amount Won
1 p d-5 L-5 295 -5
2 p d-8 L-8 287 -13
3 p d-13 L-13 274 -26
4 d d-20 W-20 294 -6
5 d d-13 W-13 307 +7
6 p d-5 L-5 302 +2
7 d d-8 W-8 310 +10
8 p d-5 L-5 305 +5
9 p d-8 L-8 297 -3
10 p d-13 L-13 284 -16
11 p d-20 L-20 264 -36
12 d d-35 W-35 299 -1
13 d d-20 W-20 319 +19
14 d d-8 W-8 327 +27
15 d d-8* W-8 335 +35
16 d d-8* W-8 343 +43
17 d d-8* W-8 351 +51
18 d d-8* W-8 359 +59
19 d d-8* W-8 367 +67
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Outcome Bet-Amount Win-Loss Bankroll Amount Won
20 p d-13** L-13 354 +54
21 d d-8* W-8 362 +62
22 p d-5 L-5 357 +57
23 p d-8 L-8 349 +49
24 d d-13 W-13 362 +62
25 p d-8 L-8 354 +54
26 p d-13 L-13 341 +41
27 p d-20 L-20 321 +21
28 p d-35 L-35 286 -14
29 d p-50 L-50 236 -64
30 p p-75 W-75 311 +11
31 d p-35 L-35 276 -24
32 d p-50 L-50 226 -74
33 p p-75 W-75 301 +1
34 p p-35 W-35 336 +36
35 d p-20 L-20 316 +16
36 p p-35 W-35 351 +51
37 p p-20 W-20 371 +71
38 p p-13 W-13 384 +84
39 d p-8 L-8 376 +76
40 d d-13 W-13 389 +89
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Outcome Bet-Amount Win-Loss Bankroll Amount Won
41 p d-8 L-8 381 +81
42 p d-13 L-13 368 +68
43 d d-20 W-20 388 +88
44 d d-13 W-13 401 +101
Other than calling a difficult session over even if you have not reached the target
win or prolonging a winning session using our specified parameters, there is no reason to
depart from the modified craps playing strategy.
A detailed account of a craps game played in Las Vegas is shown in Table 12.
The left hand column shows the decision number, with each number representing
one decision entailing a win or loss of a line bet. The second column Outcome shows the
results of each craps decision. A d means that a don't pass wager would have won, a p
indicates that a pass line wager would have been a winner.
The third column Bet-Amt shows how we wagered and the amount wager. For
example, on decision 4 we bet $20 on don't pass. The fourth column Win-Loss shows the
effect of each outcome on our wager. For decision 4, we won our $20 wager (W-20).
The second to right column Bankroll tracks our bankroll throughout the session.
And the right hand column shows our cumulative win or loss after each decision.
We did not observe any decisions before starting to wager and we immediately
began betting don't pass. By decision 15, we noticed that we were enjoying a string (three at
this point) of uninterrupted don't pass decisions. We altered our betting pattern at this
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point and began wagering $8 instead of the lowest $5 wager normally called for. We
continued wagering $8 instead of $5 through decision 19. For decision 20, we decided to
raise our bet one more level and bet $13 instead of $8. Of course, the Neural Strategy
would have called for only a $5 wager at this point. We lost decision 20 and promptly
reverted back to the normal strategy for decision 21. Since we would have been wagering
(and consequently lost) only $5 on decision 20, for decision 21 we assumed that we had
only lost $5 on decision 20, so that our next wager of $8 was the normal wager called for
by the Neural Betting Pattern.
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To accelerate wagers use the following rules:
1. Only raise the wager one level from the lowest wager at first. For a $5
bettor this would be an increase from $5 to $8.
2. Only raise the wager after you have won two or more consecutive wagers
with no losses, and have just won the lowest level wager. As an example, if
you won a $8 wager and a $5 wager in two decisions, you could accelerate
the next wager to $8, instead of $5.
3. If an accelerated wager has a loss, ignore the actual amount wagered and
proceed as if the loss was of a Level 1 wager. If you lose an $8 accelerated
wager, the following wager will also be for $8 as an $8 wager follows a loss
of a $5 wager.
4. If, after accelerating your wager one level, you have won three or more
wagers with no losses, you may accelerate one more level. This is what we
did on decision 20 in the game shown in Table 12. Notice that we lost this
wager, and that the following wager made for decision 21 was for $8, the
same amount we would wager after losing a $5 wager. Any time that you
accelerate two levels, in the event of a loss, you must ignore the actual
amount wagered and pretend that the lost wager was a Level 1 wager.
This bet acceleration technique can be quite effective and is used primarily for
extending a game where we have already won our target profit, or close to it, and we are
interested in riding out a winning streak to generate even more profits. More about this
later.
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After winning decision 21, we did not accelerate our wagers anymore during this
game. By decision 28, don't pass had worn out its welcome, and having lost our Level 5
wager of $35, we switched to betting pass line. We continued betting pass line through
decision 39.
After switching to betting pass line on decision 29, we continued to wager pass line
as long as our wagers were high (above $35) and as long as we continued to win. By
decision 36 we hit a streak of three pass line wins. We continued to reduce our wagers
while still wagering pass line until decision 39 when we lost an $8 pass line wager. For the
next decision we immediately switched back to don't pass. With craps, after switching to
the pass line, you should continue wagering pass until suffering a loss on a wager below
$35. With a loss below a Level 5 wager, you will switch back to don't pass.
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WINNING AT GAMBLING
Why gamble? The purpose of this book is not to encourage people to gamble. Yet
the odds are that you have gambled and will continue to gamble. Nearly everyone gambles.
I believe that people gamble because gambling is nothing more than an extension of
the risks that living itself entails. Gambling compresses these risks into a short-term
microcosm of the general human experience.
What is obvious is that gambling fulfills some basic human need that is more
comprehensive than the need to win. It is an urge that defies logic even though many
persons will try to attach logical reasoning to why they gamble.
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It is beyond the purpose of this book to discuss the psychological and emotional
aspects of gambling. However, we will try to direct the purpose of gambling. Our focus is
to pursue gambling strictly as a means of winning money using the techniques described in
this book.
I have experienced both types of gambling, gambling for the hell of it (although I
wouldn't have called it that at the time) and directed, purposeful gambling with the object of
winning.
Trust me on this: winning is more fun than losing. Winning requires a much more
controlled, directed approach than losing. It is easier to lose than it is to win. But the
satisfaction of winning (not to mention the extra cash in your pocket) more than offsets the
discipline required to become a winner.
Statistically, I can tell you that you are most likely a loser at gambling. You may be
the most conservative banker or accountant who would drive across town to save ten bucks
on a purchase, yet drop two hundred bucks in an hour in a casino. On the average, over
ninety percent of casino gamblers are losers.
This chapter is the most important one in this book. In it we will cover the essential
aspects to becoming and remaining a winner at casino gambling.
To win at gambling requires knowledge of the game and the system to be used
while playing, the ability to correctly manage your money, the self control to handle the
pressure generated by the casino atmosphere, recognition of the importance of trends in
gambling and the discipline to keep careful records of gambling wins and losses.
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Knowledge
If you are going to gamble, you had better know what you are doing. You can't
expect to win if you don't know how to play the game.
Craps has been a favorite game of high rollers for a long time. The typical high
roller will bet the pass line, take odds and cover the numbers with place bets. This is a
system which can win large amounts if the dice are passing. If the dice are not passing with
greater than normal regularity, this method of play can be a disaster and it usually is.
In a craps game I was involved in at the Desert Inn on the Las Vegas strip a few
years ago, a celebrity joined us at the table (I won't embarrass him by naming him). This
guy cashed in for $10,000 and proceeded to lose it in ten minutes. He obviously had played
the game before, as he knew exactly how to make $500 pass line wagers with full odds and
how to cover all of the place numbers with $500 or $600 wagers. He even knew how to
throw $100 chips to the stickman and take all of the hardways. What he didn't know was
how to properly play the game of craps – with a reasonable prospect of winning.
His "system" would only work if the dice cooperated and produced long strings of
numbers between sevens. On this particular table at this particular time this was not
happening, and he didn't have a prayer of winning.
Did this celeb player have the knowledge to beat the game? Obviously not. His
approach was a common one used by high rollers who nearly always end up losers. While
his wagering might have impressed a novice, he had less chance of winning than any
beginner sticking with one or two basic wagers.
I recall one craps game at the Las Vegas Hilton where I was approached by two little
elderly women. They were slot machine players who thought that craps looked
"interesting" and decided to risk twenty bucks to experiment with the game. They started
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asking me for advice and not wishing to see them lose all of their slots winnings, I advised
them on how to wager. They made one wager at a time on the pass line, with no odds
taken. If the shooter made a pass, I let them raise their $5 base wager by $2. If the shooter
sevened out, they were back to the $5 wager.
As they tottered off, and I turned my attention back to the table and to some of the
snickers of the high rollers at the table, the thought occurred to me of how superior the
ladies' play had been to my fellow players wagering with $25 and $100 chips. With their
limited knowledge of the game (and my assistance) they had the good sense to quit winners.
Most of the high rollers at the table would continue to play and sign additional markers
until the game had totally wiped them out.
Many stock market investors are just like the casino gamblers. They want to make
money by buying and selling stocks with zero investment in learning the game. A typical
stock investor hears about a "hot stock" from his broker, his drinking buddy or even his
barber. Without knowing anything more than the name of the stock, he buys a hundred or
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so shares. And six months or a year later he sells the stock at a substantial loss. Amazingly,
he will probably buy another stock relying on another hot tip and repeat the process all over.
He just can't seem to figure out that if he wants to play this game and win, he needs to have
some knowledge of how the game is played.
You can't hope to win something you don't understand. The rules for using The
Neural Strategy are straight forward, but it will take an investment of time to learn how to
use them. There is no substitute for practice in learning to apply these rules. If you read
this book quickly, skimming or skipping certain chapters, and then rush off to Las Vegas or
Atlantic City, don't blame me if you end up losing.
An essential element of practice is to not only learn how to use this strategy, but to
gain a level of confidence that the strategy works. I have this confidence because I have
used the strategy. I know what it feels like to occasionally lose a game, and I have a feel for
how each game usually goes. I have tried to share these things with you, but there is no
substitute for experiencing it yourself. In other words, don't take my word or anybody elses
for it. Practice the strategy at home until you can use it flawlessly and until you have
confidence in both the strategy and yourself.
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The number one rule for gambling is never to play with money you can't afford to
lose. No matter how skillful a player you are, or how lucky you feel, if you gamble with
money you can't afford to lose, you are asking for trouble.
The amount of money you have for gambling determines the size of bettor you will
be. The Neural Strategy works by chipping away at the casino's cash, and you must have
enough cash to allow this strategy of "chipping away" to work.
As a general rule of thumb, the amount of money you take for a gambling excursion
(called your Trip Bankroll) should be five times the amount of money required for a
session at the table (called your Session Bankroll).
This amount will become your Session Bankroll, which is the amount you will take
for a game or session. The amount needed for a trip will be five times the Session Bankroll,
or in the case of a $5 bettor, $1,500 (5 X $300).
If you are a $2 bettor, your trip bankroll will be $600. A $25 bettor will need a
$7,500 trip bankroll, and a $100 bettor will require $30,000 for a gambling trip.
These amounts are not arbitrary; I did not dream them up. These are the minimum
amounts needed to correctly play the Neural Strategy. If you take less, you will be playing
over your head and will not have enough money to play the strategy correctly. And if you
don't play correctly, your chances of winning are severely diminished.
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Whenever you play a session, you will have a Loss Limit equal to your Session
Bankroll. If you lose the Session Bankroll, that session is over, finished. You will never
continue to play after losing a session. Take a break. Take a walk. Take a nap. But never
continue playing.
Likewise, winning a session (one third of the session bankroll, as called for in the
Neural Strategy) constitutes reaching your Target Profit for that session. You should take
a break after winning a session. However, you may wish to continue wagering, even after
achieving the target profit, on a controlled basis by accelerating your wagers so long as you
continue to win. Whenever your accelerated wagers lose, your session will be over.
You will notice that this approach is very controlled. You will use a set amount of
money, limit your losses, and aim for target wins. This discipline will help you in
developing the overall confidence to emerge a winner in your contest with the casino.
Self Control
A former business associate of mine was the worst gambler I have ever seen. His
track record was perfect: He never left Las Vegas a winner.
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He had no self control when he was gambling. There is nothing more important
than exercising self control when gambling. If you can't do this, then you are doomed
to remain a loser.
If you really want to lose, here is a set of rules guaranteed to fulfil this wish:
– Always take small profits and accept large losses when they occur.
– Increase the size of your wagers whenever you feel the time is right.
– If you lose a session or two, just pull out more money and keep playing.
Your luck might change.
– Drink as much as you want while gambling after all, the drinks are on the
house.
– Never listen to those nagging doubts that tell you it is time to quit.
– If you lose, blame the dealers, your rotten luck, the cocktail waitress,
anyone but yourself.
The cornerstone to winning is patience. With The Neural Strategy you will not win
the keys to the casino in one session. The whole approach to the strategy is to gain a small
advantage over the casino and to continue to whittle away at it. For this strategy to work,
you must be patient and control your impulses so that the strategy has a chance to work.
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When you enter a casino, the enemy is not the casino or the dealer; it is you. If you
can control yourself, you will become a winner. If you can't, then it is unlikely that any
strategy will make you a winner.
Trends
In casino games, the trend is your friend. No matter how improbable a trend may
be, it usually makes sense to follow the trend rather than buck it.
. I had considerable justification for making this decision, in that I had studied the
supply and demand for silver, I had reviewed historical prices of silver, I knew that silver
prices had been much higher just a short time earlier. I had, I thought, a very good case for
silver prices to rise. So I purchased several silver futures contracts to take advantage of
silver's temporary slump in price.
And silver prices continued to drop. By the time they were down to $5.75 an ounce,
I had had enough and I threw in the towel and sold at a loss. (As I write this, silver has
recently been trading in the $3.50 to $3.60 an ounce range.) In my eagerness to take
advantage of silver's "temporary price slump" I had forgotten one thing. Don't fight the
trend. The trend in silver prices at that time was clearly down. And no matter how
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illogical it seemed, they continued downward. Silver prices did not care that my analysis
showed that they were due to turn up; they continued on their merry way in a downward
trend. The moral of this story is simple: Don't fight the trend, no matter what you may
think of its direction.
The Neural Strategy is designed to follow trends. When one trend peters out, it is
ready to try another direction. If that direction fails, it is perfectly willing to reverse and try
the original trend once more. Because it is mechanical it will zig when you sometimes
think it should zag. Don't try to out think it. If has been proven to work and has a
tremendous advantage over you trying to guess trends. It relieves the pressure we all feel
when we are trying to figure out how to play a game. Follow the trend that the strategy will
lead you on. You will lose a game occasionally, but your average will be much superior to
other trend following techniques or to trying to outguess the game.
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Record Keeping
Keeping a record of each game is essential. A sample record keeping sheet is
shown on the next page. Don't carry around a notebook for this. It's a tipoff that you are
more than a casual player and you may be hassled by the casino personnel. I usually use a
sheet of paper or even the back of a deposit slip which I keep in my pocket. Later, after
leaving the casino, I will transfer this information to my permanent notebook.
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Session Won Cumulative Won
Date Casino Bankroll (Loss) (Loss)
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PLAYING TO WIN
Before you begin to put the techniques of The Neural Strategy to work, you must
have confidence and believe that you are going to win. By confidence, I don't mean a blind
faith in luck, for that's how most losers approach the gaming tables. Confidence is the
feeling that you have it all together. You understand the games well enough to play
correctly, your betting and playing strategy is down pat, you have brought the correct
bankroll with you, you are prepared to record each of your sessions, and you are in control
of your emotions.
Most gamblers don't want to spend much time, if any, in learning how to become a
winner. They believe that there is some magic formula out there, which if mastered, will
turn them into perpetual winners, with almost no effort on their parts. Unfortunately,
winning at gambling, like attaining success in almost any endeavor, requires some time and
commitment.
I can't make you a winning gambler. The Neural Strategy is a highly effective
technique for winning. But it won't work for you unless you put the time and commitment
into its application.
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You can become a consistent winner if you will:
1. Learn the strategy so thoroughly that you can apply it without any hesitation.
The first step in learning it is to pick a game, say baccarat. If you have a deck of cards you
can play baccarat in your home. Write down the Neural Strategy rules for baccarat on a
sheet of paper and start dealing some baccarat hands. As you play each hand, write down
your bet selection and amount wagered, such as p-5, indicating a $5 wager on player. As
you progress, you will find that you can track your wagers without using a pencil and paper.
2. Continue to practice at home with as many distractions as you can find. Play in
front of the television. Play when other people are in the room talking to you. Play as often
as you can, for about thirty minutes at a time. By learning to play for short periods with
many distractions, you will be acclimating yourself to the casino environment. Before
trying out the strategy in a casino, you will want to know it so well that you can apply it
without thinking about it. When you have reached this stage, with one of the games, you
can start the process over with a different game. Learning a second or third game is purely
optional. I like to move from one game to another as it provides more variety and is more
stimulating. But you may prefer to play only one game. It's your choice.
3. Plan your bankroll before scheduling a trip. Your bankroll should come from
money that is extra and will not be needed for living expenses. If you take the rent money
for gambling, the psychological pressure will probably be too much for you, and besides,
this is just not good policy.
4. Get your record keeping system ready for the trip. A small notebook is all you
need.
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5. Set up a daily playing schedule for your trip. You don't have to have every
minute scheduled, but I have found that my mental attitude is improved if I have set aside a
definite time for gambling as well as times for other activities. This approach will also help
you treat the gaming like a small business, i.e., there is a time for business and a time for
pleasure.
6. Follow our guidelines for quitting a session. They are very simple. Anytime you
lose a session, take a break. If you win a session, you should consider taking a break. If you
don't take a break after a winning session, set aside all of your winning chips and start over
as if it is a brand new session.
8. Keep your wagering limits within your bankroll size. In other words, don't
overbet your bankroll. It is often very tempting after several consecutive winning sessions
to decide to increase the size of your wagers. If you have been a $2 bettor, you decide to
jump to the $5 betting series. Don't do this unless you have a large enough bankroll to
support the size of wagers. As a $2 bettor, you brought a $600 trip bankroll, divided into
five $120 session bankrolls. You won't be ready to increase your betting series to the $5
level until your bankroll has grown to $1,500, the level necessary for $5 bettors. As your
winnings increase, you will find that your bankroll has increased enough to do this. Just be
patient.
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TABLE 13. SESSION AND TRIP BANKROLLS
$2 $120 $600
$5 300 1,500
Come to the table confident about yourself and your game. Play to win, not for any
other reason, and certainly not just for the thrills of the casino.
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The Neural Strategy © 2008 Silverthorne Publications All Rights Reserved
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