Bayesian vs trade space

Bloomberg

This chart is my current example of Bayesian space.  It is the complete sequence of corporate bond yields.  These are the combinations the corporate bond market can create, their share of combinatorials, Bayesian space.

This sequence will be traded, in trade space. All traders can observe this sequence, and trade it to risk equalization until there is no residual pattern.  In trade space, this set becomes a binomial distribution.  In trade space, it is a self sampled system, quantum mechanical, it is under sampled.  If we know the under sampling we can find the hidden Markov points, create the appropriate trading pits and let the bots manage trade somewhat autonomously, adjusted to traders risk level.

But, I digress.  This is what I mean about the space transition. The result is that all elements of a portfolio follow a pattern about a hyperbolic surface with sampling rate adjusted by hyperbolic angle.  And this surface flattens to your standard economic identities.  This is what bean counters do, implicitly, when constructing real and nominal growth.

Think of the trading pits as finding the geodesic integer spots in the cloud of uncertain N.