Alpha is the culmination of a natural material's journey through a chain of complex interactions that have instilled a high energy density into a piece of driftwood (measured as cash/cultural/computational power). By becoming an artwork, this dead wood’s socioeconomic-negentropy rate continues to grow long past its death.
In information theory, negentropy is defined as a measure of distance to total noise. Negentropic phenomena are characterized by the tendency towards the concentration of energy, differentiation, order and the ability to keep the system away from heat death— Negentropy is the seemingly miraculous transmutation from stardust into human brain matter into a microchip or a masterpiece.
This idea is roughly analogous to the financial term Alpha: the percentage that returns exceed predicted returns, compared against a benchmark, and the comparative risk— A financial strategy with greater alpha is more profitable. A work of art’s Alpha could be written as: [(sale price - investment) + ('conceptual risk'/ art market)] - index = Alpha.
The flow and growth of capital is equivalent to a natural systems ability to import, store and grow negentropy. By endowing our sculpture Alpha with the abilit yto “grow” energy we create a truly dynamically connected art object, in tune with the natural oscillations of the markets and the universe.
The piece as we're selling it works like this, there is a small computer in the base running a program called collective 2 which subscribes to algorithmic trading strategies and executes trades automatically with a stock account from interactive brokers. The LED's are connected to an Arduino microcontroller connected to the mini pic by USB which makes the LED's pulse blue to indicate that the system is operational and awaiting a signal to close a trade. When a trade is closed and it is profitable the leds will blink green for 20 seconds and likewise when it loses money on a trade it will blink red.
Because it is an American account, in order to comply with SEC rules for pattern day traders, the collector must keep more than US$25,000 invested in the piece or the account will be frozen for 90 days. There will be a stop-loss set at US$25,000 which means the piece will automatically liquidate its assets in order to maintain the US$25,000 level. The collector can choose how much he or she would like to invest on top of this 25,000, the profits of which can be transferred in and out of the piece at will. While the piece is in storage, the account will be frozen and no trading will occur. If the collector liquidates the US$25,000 the piece and its certificate becomes void.