Wednesday, November 29, 2017

The Redneck trading pit, structurally

To help move the discussion.

We have one or more queues of  'bets' organized as generator graphs. One process has partial access to the tree to reorganizes the bins and maintain structure.  Tere is an arrayof otherorocesws, called trading bots. These bots share time in scanning the tree and placing bets.

The reorganizer process, the pit boss, will match one, two, or N sets of generators by measuring distance between generator and bounding that distance. Bets pay off as needed to maintain bounds.

The generators may change shape but maintain rank, we get adiabatic exhange, then we get requants. There is quantization error, market making risk carried by the pit boss, it is an implicit better,

What this does is enforce a valid pricing algebra, within bounds. Businesses with real goods get an accounting tool that matches their trucks, bins and bags. The rest is semantics.

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