Computer-Implemented System for Dynamic Equilibrium Detection in Algorithmic Markets

A Ljungqvist-Sargent Recursive Framework

Abstract

Disclosed are methods and systems for identifying, quantifying, and stabilizing recursive equilibrium states within algorithmically mediated financial markets, such as cryptocurrencies or equities. The framework implements Ljungqvist-Sargent recursive equilibrium (LSRE) logic in conjunction with volatility damping routines and high- frequency liquidity diagnostics to dynamically detect self-reinforcing price thresholds. Applications include stock exchange systems for real-time order entry, equilibrium detection, and hedge adjustment, as well as cryptocurrency exchanges requiring equilibrium detection systems compatible with recursive macroeconomic theories.