fintech-algorithms

Reconstitution Algorithm

Install and import

bash
npm install fintech-algorithms
ts
import { calculate } from "fintech-algorithms/index-and-benchmark-engineering/governance-and-maintenance/reconstitution-algorithm";

Signature

calculate(data)

Worked example

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input

data
{
  "candidates": [
    {
      "id": "A",
      "score": 98,
      "incumbent": true
    },
    {
      "id": "B",
      "score": 94,
      "incumbent": true
    },
    {
      "id": "C",
      "score": 90,
      "incumbent": false
    }
  ],
  "targetCount": 5,
  "incumbentBuffer": 1
}

Call

calculate(data)

Returns

object with 4 fields: selectedIds, additions, deletions, targetCount

{
  "selectedIds": ["A", "B", "C", "D", "F"],
  "additions": ["C"],
  "deletions": [],
  "targetCount": 5
}

Diagrams

Reconstitution Algorithm — article hero
Reconstitution Algorithm — failure guard
Reconstitution Algorithm — worked example

Calculation flow

Reconstitution Algorithm calculation flow 
flowchart LR
    A["Point-in-time inputs"] --> B["Validate units and timing"]
    B --> C{"Contract feasible?"}
    C -->|No| D["Reject with reason"]
    C -->|Yes| E["Calculate Reconstitution Algorithm"]
    E --> F["Recompute invariants"]
    F --> G{"Checks pass?"}
    G -->|No| D
    G -->|Yes| H["Publish audited output"]
Reconstitution Algorithm methodology state 
stateDiagram-v2
    [*] --> FrozenInputs
    FrozenInputs --> Validated: contract passes
    FrozenInputs --> Rejected: missing or infeasible
    Validated --> Calculated: apply named rule
    Calculated --> Audited: invariants pass
    Calculated --> Rejected: invariant fails
    Audited --> Published: version and timestamp recorded
    Published --> Revised: approved correction
    Revised --> FrozenInputs: rebuild from retained source state

How it works

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References