- #1

The Investor

- 34

- 0

- TL;DR Summary
- Adjust your strategy as you receive more information as to what the bias of the coin might be.

You are given the opportunity to play a game where a coin will be tossed 10,000 times consecutively.

You have a starting bankroll of $1,000,000.

The coin may be biased (you are not given any information as to what the probability or the degree of bias might be). A bet on either heads or tails is for even money.

Your goal is to formulate a staking strategy to maximize the geometric growth rate of wealth. On each coin toss you may use the information from the previous results of the tosses to adjust your stake size as a proportion of bankroll, but you must decide on a set of rules (algorithm), before the coin toss procedure starts, and may not change this for the rest of the game. Not betting at all on any particular coin toss is allowed, and if you do choose to bet, you must do so in amounts in round pennies.

You have a starting bankroll of $1,000,000.

The coin may be biased (you are not given any information as to what the probability or the degree of bias might be). A bet on either heads or tails is for even money.

Your goal is to formulate a staking strategy to maximize the geometric growth rate of wealth. On each coin toss you may use the information from the previous results of the tosses to adjust your stake size as a proportion of bankroll, but you must decide on a set of rules (algorithm), before the coin toss procedure starts, and may not change this for the rest of the game. Not betting at all on any particular coin toss is allowed, and if you do choose to bet, you must do so in amounts in round pennies.