Friday, December 2, 2016

A simpler explanation of the bot system

Everything is the same as he current system in terms of finance, with one major changer.  Every number that we normally use, comes as a small dimensional, finite element probability distribution.  So, current stock price is a distribution.  Second, no time; time is derived, and traders make the categories by installing trading pits.  All the normal value added investing continues, except you have the option of staying completely in probability space. Ot, converty tyo mean values over time.

This works because every price goes through the trading pit, and they is why is does, compute finite probability distributions.  The most recent stock price, he exact last trade? You know it about as well as yhe other 40 bots trading the graph, it is a serial arrival, subject to queue uncertainty.

Is the human element gone? No, he is screwing around with his trading snippets, looking to try some new 'value added hold and keep Warren Buffet style investing? But, if the trader wants a 'rate' to bet against, it is easy to derive. Otherwise, drop some large digits into some corporate  bond tree, a precise enough tree, so everyone know you will be around a very long time.

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