Friday, November 4, 2016

The Insuring pit boss

We need  maximum entropy insurance companies, since they are automatic. They arr automatic because hey are a generic hedge fund. The smart card owner signs up, its a subscription service.  It will, appropriately, measure incoherence from the user selected set of market graphs; and the user profile. It retains use coins, user selectable, in the appropriate S&L pits for that coin.  The retained coins on deposit insuring against incoherence.  It restores the red light back to yellow, or slightly green. let us start with set up:

import tradingpit as Pit
Pit.boss = GenericHedge
Pit.coin = UserSelected

User can select the coin which forms the liquidity buffer, but in the bot collective, every coin has a standard S&L. So, the pit boss, again, has no systematic risk, but carries bit coin error, as per contract. Since it is a fair measure of probability (it includes precision), then the users can select the Aggregate  option, let the pit boss aggregate up the liquidity of all insured of the same coin, just keep one account at the designated S&L.

A generic hedge pit boss would be extraordinarily valuable, making its author a millionare many times over.  But, I am a bit busy. I van explain it from the users point.

The users have bunches of coins, from Walmart to Homerdepot to US tax dollar, even morer.  What proportion of coins should he keerp? Depends on where the user shops, so tell your insurance agent, I shop here, there, and over there, using these coins. Then thumb print your smart card to release an estimate of your current spending needs.  The insurance boss will do the rest, and coin risk at the currency banker for each and every coin?  It will almost immediately be revealed to the currency pit boss.  Huge drop in un-necessary looping in the currency business.

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