In previous posts I have mentioned, with few details, a potential way to display the state of the trading network. Over the past few weeks I have been playing with the idea and progress is being made. The site, Particle Markets, will be the center of these new ideas to publicly and freely display the state of trading networks.
Currently the site displays a simple, 2D Ising type model, progressing through time. There are 176,400 total traders, and they all start with Long positions. As time progresses many of the traders sell and become either neutral or short. All traders are long/short 1 share. The summation of their numbers after each time step determines the change in price of the traded security.
This is a simple model. Future models will incorporate more details. I hope to be able to use actual data one day and display daily changes in the actual human network; in the same way a meteorologist shows viewers his Doppler radar to warn of storms, Particle Markets will be able to show investors the “market weather.”
The concept applies mostly to the stock market, since a trader holds a contract which has no “delivery date.” I hope to apply the same ideas to commodity markets.
Future Update Ideas:
