Sunday, December 4, 2016

The big picture

What is it all about?
Simply using a trusted network to track prices by probability, in a nested fashion that minimizes the cycle count to obtain variables like mean or deviation.  In other words, an optimum quantizer so most bid/ask values are produced about some typical price 'structure  or vector'.

Simple to do when counting actions is mostly cost free and redundancy get squashed wherever it is found.  All the human traders are still there, they huddle with python geeks and write trading bots and pit boss codes. They even go put to dairy farms and check on  internet devices. Jobs are not lost, they just become more fun.

The essential ingredient is that every human loves his secure smart card which never ever reveals anything or does anything without  a biometric kiss from the owner. Once kissed, the card is as intelligent as any other card, perfectly secretive, and a maximum entropy better. The smart cards mostly interact in the trading pits, and there is no single view which can describe any current price.

 No human can do better, except by going out to dairy farms and getting the jump on new internet devices; then using his Graham Value investing.  You see, only innovations; the discovery of new things coming and old things going, as observed in the slightly red zone.

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