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New Stock Trading and Lottery Game Rooted in Deep Math

I describe here the ultimate number guessing game, played with real money. It is a new trading and gaming system, based on state-of-the-art mathematical engineering, robust architecture, and patent-pending technology. It offers an alternative to the stock market and traditional gaming. This system is also far more transparent than the stock market, and can not be manipulated, as formulas to win the biggest returns (with real money) are made public. Also, it simulates a neutral, efficient stock market. In short, there is nothing random, everything is deterministic and fixed in advance, and known to all users. Yet it behaves in a way that looks perfectly random, and public algorithms offered to win the biggest gains require so much computing power, that for all purposes, they are useless -- except to comply with gaming laws and to establish trustworthiness.

We use private algorithms to determine the winning numbers, and while they produce the exact same results as the public algorithms (we tested this extensively), they are incredibly more efficient, by many orders of magnitude. Also, it can be mathematically proved that the public and private algorithms are equivalent, and we actually proved it. We go through this verification process for any new algorithm introduced in our system. 

In the last section, we offer a competition: can you use the public algorithm to identify the winning numbers computed with the private (secret) algorithm? If yes, the system is breakable, and a more sophisticated approach is needed, to make it work. I don't think anyone can find the winning numbers (you are welcome to prove me wrong), so the award will be offered to the contestant providing the best insights on how to improve the robustness of this system. And if by chance you manage to identify those winning numbers, great, you'll get a bonus! But it is not a requirement to win the award.

Read the full article

Content

1. Description, Main Features and Advantages

2. How it Works: the Secret Sauce

  • Public Algorithm
  • The Winning Numbers
  • Using Seeds to Find the Winning Numbers
  • ROI Tables

3. Business Model and Applications

  • Managing the Money Flow

4. Challenge and Statistical Results

  • Data Science / Math Competition
  • Controlling the Variance of the Portfolio Value
  • Probability of Cracking the System

5. Designing 16-bit and 32-bit Systems

  • Layered ROI Tables
  • Smooth ROI Tables
  • Systems with Winning Numbers in [0, 1]

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