Friday, April 27, 2018

Doing quarks with generators

W3e want to exend the simple two color shared trade space to three colors and observe the gluon effect. Even though this is a data sampling model, under sampling and over sampling have equivalent effects as space-time distortion.  We can show the generator models have three color confinement because the 'pit boss' inherits extra sample space

In this case,we have three semi-random encoders' generating liquidity  events which must fit the finite sample space.  Each of the three trading queues observes the bandwidth remaining for two other generators as a force, SNR means bandwidth share.  But, notice that each generator, in its construction, must allow space for the matching error.

Two things happen, SNR goes way down and channel allocation drops for all three.  The amount of uncertainty allocated to the 'gluon; is a third higher than the two color case.  In trading terms, the pit boss has a lot more market space to work with, it is over allocated. 

The pit boss is over sampling the queues, and the queues are slightly undersampled.  If you work through the space time Wilson loop analogy we will see a three generator model emerge in sample data form

The speed of light warping in time/space becomes an aliasing problem in sampled data.

No comments: