Entanglement Risk Index, Projected Quantum Feature Maps, and Shannon Entropy Gating for Algorithmic Trading

Quantum Market Infrastructure: Entanglement Risk Index, Projected Quantum Feature Maps, and Shannon Entropy Gating for Algorithmic Trading. This paper presents three novel quantum-inspired systems for real-time market risk assessment and trade signal filtering: (1) an Entanglement Risk Index (ERI) computed from the market density matrix (ERI = 1 - Tr(rho^2)) with a Quantum Early Warning Signal (QEWS = dERI/dt) for detecting structural tightening before price moves; (2) a Projected Quantum Feature Map implementing the HSBC-IBM 4-qubit parameterized circuit approach for transforming technical indicators into quantum-enhanced feature space; and (3) a Shannon entropy gate measuring per-symbol order flow noise to distinguish informed flow from random walk conditions. All three systems operate as real-time Python bridges writing atomic JSON signal files consumed by MQL5 Expert Advisors. Based on arXiv:2511.21515 and the HSBC-IBM collaboration (September 2025). Author: James Jardine | ORCID: 0009-0004-9073-7192 | License: GPL-3.0