1st June 2025

Optimal Betting Strategy 1

Coin Flip betting using Reinforcement Learning

Have you ever staked money on coin flips or otherwise? Well, I actually have in a previous quant internship! Maybe you didn't, but you're just curious. For you, I have the optimal strategy to stake your money! Even though it refers to coin flips, you can use this for anything that has a known win probability where you get double your money back. Here's a document explaining the math behind it.

I hope you enjoyed reading the article, but here's the fun widget! Set in your values and see the graph!

Any feedback is greatly appreciated!

Note that there are some slight numerical issues for stakes with really small values of p.

Final Policy (Stake per Capital)

Value Iteration Snapshots

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