System for winning investment selection using collective input and weighted trading and investing

• US 20020032630A1
• Filed: 05/07/2001
• Published: 03/14/2002
• Est. Priority Date: 05/08/2000
• Status: Active Grant

• Current Assignee: Jian Peng, Karl Peng
• Original Assignee: Jian Peng, Karl Peng
• Inventors: Peng, Karl, Peng, Jian
• Granted Patent: US 7,299,204 B2
• Time in Patent Office: Days
• US Class Current: 705/36
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Members vote on which investments within an agreed upon list of investments they believe should be bought and sold. Members can be general members or experts. Records of each member'"'"'s voting history are retained and compared against market data showing actual gains and losses associated with each investment. Members whose votes are consistent with actual performance (they made good selections) are given higher weights; members whose votes are inconsistent with actual performance (they made bad selections) are given lower weight. Investment assets are bought and sold based on the collective vote of the members. Members are rewarded for a good voting record by receiving an additional share of the incremental profit of the collective investment.

Claims

1. A decision making system for selecting investment assets, comprising:

vote data for representing desired selections related to the investment assets;

a voting record assessment module for providing investor voting assessments based on vote history; and

a buy-sell decision engine for selecting investment assets based on the vote data and the investor voting assessments.

2. The system of claim 1 wherein the vote data is weighted for each one of the investment assets.

3. The system of claim 1 wherein the investment assets are pre-selected.

4. The system of claim 1 wherein the investor voting assessments include weighting coefficients for adjusting the vote data.

5. The system of claim 1 further including a transaction engine for buying and selling investment assets.

6. The system of claim 1 wherein the investment assets are associated with a mutual fund.

7. A method for selecting investments related to mutual fund transactions, comprising:

receiving investment data which is representative of mutual fund transactions;

receiving vote history data which is representative of prior votes;

transforming the vote history data into a voting record assessment expression; and

adjusting the voting record assessment expression based on the investment data;

whereby the investment data is selected based on the adjusted voting record assessment expression.

8. The method of claim 7 wherein the voting record assessment expression is:

WWSS_i=f_i(0)*WWSS_i(0)+f_i(1)*WWSS_i(1)+ . . . +f_i(n)*WWSS_i(n)

wherein WWSS_i(0), . . . , and WWSS_i(n) are trading period specific voting record assessments which each are associated with a trading period and f_i(0), . . . , and f_i(n) are previous participation functions which are associated with the trading period and where 0 . . . n represents each of the trading periods.

9. A method for collective financial decision making of an item among a group of users, comprising:

receiving decision points values which are representative of selecting an item by each of the users, each of the decision points values are determined by the each of the users;

transforming the decision points values into a voting expression which is representative of the users'"'"' prior abilities in selecting the item and current desires to select the item; and

adjusting the voting expression based upon winning weighted point functions and the decision points values;

whereby the item is selected based on the adjusted voting expression.

10. The method of claim 9 wherein each of the winning weighted point functions are based on individual weighted coefficients related to winning percentages.

11. The method of claim 10 wherein the each of the winning weighted point functions are further based on weighted coefficients for individual net gain from the trading of the item and weighted coefficients for group'"'"'s voting performance.

12. The method of claim 11 wherein the prior compensation values and prior compensation amounts are representative from the same group of prior decisions

13. The method of claim 11 wherein the time weighting coefficients are greater for adjusting winning percentages and compensation amounts which occurred more recently in time.

14. The method of claim 9 wherein the winning weighted point functions are based on:

WWSS_i=f_i(0)*WWSS_i(0)+f_i(1)*WWSS_i(1)+ . . . +f_i(n)*WWSS_i(n)

where WWSS_i(0), . . . , and WWSS_i(n) are trading period specific weighted winning point functions which each are associated with a trading period, f_i(0), . . . , and f_i(n) are previous participation functions which are associated with the trading period and where 0 . . . n represents each of the trading periods.

15. The method of claim 14 wherein the trading period specific weighted winning point functions is based on:

WWSS_i(n)=e₁*WWSS_i1+e₂*WWSS_i2+e₃*WWSS_i3

wherein WWSS_i1 is the individual weighted coefficient for winning percentages, WWSS_i2 is the weighted coefficient representative of individual net gain from the trading of the stocks;

WWSS_i3 is the weighted coefficient representative of group'"'"'s voting performance, and e₁, e₂, and e₃ are weighted constants.

16. The method of claim 14 wherein the coefficient from the group'"'"'s voting performance from the trading of the stocks is based on:

WWSS_i3=f_i3(0)*WWSS_i3(0)+f_i3(1)*WWSS_i3(1)+ . . . +f_i3(n)*WWSS_i3(n),

where f_i3 (0), . . . , f_i3 (n) are previous participation functions.

17. The coefficient of claim 9 wherein the selected item is sold.

18. The coefficient of claim 9 wherein the selected item is bought.

19. The coefficient of claim 9 wherein the item is selected from the group consisting of stocks, commodities and combinations thereof.

20. A method for allocating a predetermined financial distribution related to an item among a group of users, comprising:

receiving a predetermined compensation item for allocation, the predetermined item representative of financial value;

transforming the predetermined compensation item into a distribution expression which is representative of the users'"'"' prior selection abilities and current investment in the item; and

adjusting the distribution expression based upon a weighted winning point function and the predetermined compensation item;

whereby the predetermined financial distribution is allocated based on the adjusted distribution expression.

21. The method of claim 20 wherein each of the winning weighted point functions are based on individual weighted coefficients related to winning percentages.

22. The method of claim 21 wherein the each of the winning weighted point functions are further based on weighted coefficients for individual net gain from the trading of the item and weighted coefficients for group'"'"'s voting performance.

23. The method of claim 22 wherein the prior compensation values and prior compensation amounts are representative from a group of prior decisions.

24. The method of claim 22 wherein the weighted coefficients for individual net gain from the trading of the item and the weighted coefficients for group'"'"'s voting performance which occurred more recently in time receive a greater weight.

25. The method of claim 20 wherein the winning weighted point functions are based on:

WWSS_i=f_i(0)*WWSS_i(0)+f_i(1)*WWSS_i(1)+ . . . +f_i(n)*WWSS_i(n)

where WWSS_i(0), . . . , and WWSS_i(n) are trading period specific weighted winning point functions which each are associated with a trading period and f_i(0), . . . , and f_i(n) are previous participation functions which are associated with the trading period and where 0 . . . n represents each of the trading periods.

26. The method of claim 20 wherein the item allocation is an economic gain.

27. The method of claim 20 wherein the item compensation allocation is an economic loss.

28. The coefficient of claim 20 wherein the item is selected from the group consisting of stocks, commodities and combinations thereof.