Tuesday, February 20, 2018

Consider an economic model made of trading pits

An approximate model of some economy that has flow in and out.  The researcher says, I can track an economy with  5 high speed structured queues driven by random arrivals, typical for 5 markets.

So, the research builds amachin, one Intel processor for IO and security, and 5 processors running buy and sell queues o a DMA bus.  Each queue is structured, balanced, then assigned trading space on the DMA bus according to aggregate ratio. 

We are treating the DMA bus as index space, a countable sequence of trade opportunities. If traders always find and exploit arbitrage, then their DMA bus will look like random noise, there should be  no discernable cycling.  Each of the processors running pre-qualified trading bots against the common queue.  

All the traders sending buys and sells from thumbprints need to do pentuple accounting, be quasars. The queues are making layers of  an onion, making Pi. The solution includes sending the encoding map as traders obtain information about all five queues. But acquiring the map  across queues is priced, optimal congestion. 

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