We have been extremely busy here at Viracocha adding two new features to the application. These have to do with sharing the intentions of users and with prestige points.

This post gives the details behind how points are calculated. The idea, in general, is to have a bit of fun and also learn from our dealings with the share markets (and in this case also without hurting our pocket). So we devised this points game, and as any other game it has its rules. I grant that they could have been different, but these are the ones we came up with.

Rules on how to calculate VIRA Prestige Points:

If users share an intention to sell or buy, then VIRA will make a note of the price (P0) and date of the intention. It then calculates the delta at days P+1,P+2, P+3, P+5, P+8, P+13, P+21. Yes, this is the Fibonacci sequence, or part of it anyway.

Then VIRA calculates prestige accordingly. For example lets say that shares in GOOGLE are 100 dlls per share today (to keep it simple)

So at Day 1 (today) I post on Tweeter that ‘I am thinking on buying shares of GOOGLE’ at today’s price (Price A)

Then Vira Finance starts running prestige calculations

Day 1+1 = If price of day 2 is greater than Price A then assign 1 point

Day 1+2 = if price of day 3 is greater than Price A then assign 2 points

Day 1+5 = if price of day 6 is greater than Price A then assign 5 points

Day 1+8 = if price of day 9 is greater than Price A then assign 8 points

Day 1+13 = if price of day 14 is greater than Price A then assign 13 points

Day 1+21 = if price of day 22 is greater than Price A then assign 21 points

Same thing, but in reverse if it is ‘I am thinking on selling shares of GOOGLE’ at today’s price (Price A)

Day 1+1 = If price of day 2 is less than Price A then assign 1 point

Day 1+2 = if price of day 3 is less than Price A then assign 2 points

Day 1+5 = if price of day 6 is less than Price A then assign 5 points

Day 1+8 = if price of day 9 is less than Price A then assign 8 points

Day 1+13 = if price of day 14 is less than Price A then assign 13 points

Day 1+21 = if price of day 22 is less than Price A then assign 21 points

As you can see, these prestige points are more a hint of what the market could do than an actual calculation of portfolio value (for that we already have tons of apps!). The points are just indicative and it is just a simple higher-than/lower-than decision. VIRA will place more emphasis on how much into the future an intention lasts. And the points have to do with how well users are at predicting the market. So the more points a user has, the better she is at crystal-ball gazing -so to speak-

I will do another post with some of the idiosyncrasies of this new feature. But for now – Game on!