Tuesday, November 1, 2016

Configuring Trading Pit for a standard stock market

What is it?

import tradingpit as Pit
Pit.boss = IIDStocks
while true run_the_queue()

That means the pit boss is going to  sort the ask and bids as identically distributed symbol set, keying on stock name. More frequently traded stocks have the shortest path.

Contrast this with the WalMart pit boss.  The Walmart pit boss works just like the one in the store, customers sorted by the number of items in the basket so the checkout counters are balanced by goods transacted.

import tradinpit as Pit
Pit.boss = FixedPrice
while true run_the_queue()
See, it is all a contract affirmed by the pit boss.  For example, the CEO of Walmart wants the Walmart coin:

import tradingpit as Pit
Pit.boss = StandardS&L
Pit.coin = WalmatCoin
while true run_the_queue()

Then the CEO taps the side of his PC with his smart card.  At that moment, be assured, 6 billion smarty card owners will hold the appropriate number of Walmart coins.

What about Walmart back end inventory control? Simple, every purchasing and selling department head has as smart card, with the standard Walmart Red/Green setting.  Department head competitively buy and sell inventory, as their function requires..  Walmart corporate buys 20-30 Trading Pits boxes, from me, for an exorbitant price.  Put them into a closet, connect them to the fiber.

How well will online and store sales mix?

Once Walmart customers have smart cards, and Walmat has my Trading boxes, then the two are optimally mixed, as if they are indistinguishable.  The maximum entropy trading system simply minimizes then number of hops necessary to move some good around.  It assumes the cost of the UPS guy, the housewife, the grocery store box boy, the Walmart stocking clerk; all of these hops are locally optimum selection.  That means, any  queue jumping would cause the smart card to glow redder than it already is.

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