Saturday, March 11, 2017

The deal with quantum computers

My latest on line class material:

AN INTRODUCTION TO QUANTUM COMPUTING
by
NOSON S. YANOFSKY

The trading pits I talk about are serialized versions of quantum computing, and are about 1,000 slower.  If they were quantum computers, the pit boss would have little or no work, as soon as a trading bot scanned the trees, the trees would adjust, immediately, to the most likely set segmentation in he economy.  Trading goes on, each trade altering the two queues, which then need re-organization.  But, there is something in quantum computing that makes the queue reorg almost immediate.

I am a novice, just started reading. So far sounds great, up and running we will have singularity 3.0. But we can do 2.0 with he serial binary system, drop in he quantum hardware later. Let us call the hardware the Fast Huffman Transform, a very significant reduction in op count to find the basket boundaries.

We can do something equivalent with cycle pricing. Pay for a precision look, trading bots tdo not get guaranteed pit boss time. they pay for it in the price copression.  The didea is that observation and solution are tied together, each observation leaves the baskets more precisely defines, but losing stability as fewer observations are made.  The pit bposs, thus, is silent, in default.  Nothing is done to compress prices until a trading bot needs the precision.  Intermediate data remainsambiguous until a bot cares.

This gets us the fast Huffman encoder because compression is only marginally complete as it is needed.  In the case where you are moving gold in the back ground, for example, the shipping system is very tight, almost a guarantee against a slip up. W would expet the bid/ask sequences to be very stable against each other, and the pit boss could re-org the tree by collecting in block of trades, very easily pre-guessing where these trades go in the tree.  And, in the extreme,the ourchase of a house is very predictable, and slow mostly.  Hardly need a trading pit at all, a regular exchange woks, each trader scanning the entire unorganized list.

ASo, take th TRednek Pythn trading architecture, it has the interfaces and hardware security.  Depending upon the application, you have a variety of short hands methods to use in organizing and matching the bids, including a thumbprint per match, no autotrading.  Price compression is a technology  market unto itself, the very concept of a pricing engine is a multi-billion dollar market.


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