Investment management system

• US 20030187771A1
• Filed: 03/30/2002
• Published: 10/02/2003
• Est. Priority Date: 03/30/2002
• Status: Abandoned Application

• Current Assignee: Accutrade LLP
• Original Assignee: Accutrade LLP
• Inventors: Bulan, James
• Application Number:
  US10/112,288
• Publication Number:
  US 20030187771A1
• Time in Patent Office: Days
• US Class Current: 705/36
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An investment management and optimization system which redistributes cash based on buying and selling criteria derived from a statistical confidence levels and recommends timing, quantity and selection of investment buys and sells from a portfolio of investments, such as stocks

Claims

1. A method of managing a portfolio of investments having a market price, comprising the steps of

a) storing ownership quantity data for the investments and overall cash quantity data in a computer memory;

b) assigning a portion of said cash quantity to each of a plurality of said investments in said portfolio

c) obtaining market price data for each of said investments in said portfolio;

d) statistically generating buy and sell ratios and buy and sell ranges for a plurality of said investments in said portfolio;

e) redistributing based on said ratios said cash among said plurality of investments;

f) generating buy or hold or sell advice for each of said plurality of investments; and

g) recalculating, in response to a signal indicative of user acceptance of said advice for any one of said plurality of investments, said ownership quantity, overall cash quantity and portions for the investments based on said market price data in a simulated buy or sell according to said accepted advice, and

h) recording said recalculated data for each of the investments in the portfolio.

2. A method in accordance with claim 1 wherein a lower limit of said buy range for at least one of said investments is a ninety day low value of daily market prices for said investment.

3. A method in accordance with claim 2 wherein a “

buy threshold”

upper limit of said buy range for each of the investments is set according to a formula BT=M−

(SD×

Z), where BT=buy threshold, M=mean of values of the market price of the investment and Z is a confidence level multiplier of the standard deviation and said buy thresholds are stored in an investment analyzer module for use in generating said buy range.

4. A method in accordance with claim 3 wherein said buy range for each of the investments is set as the range between said ninety day low on the bottom and said buy threshold on the top.

5. A method in accordance with claim 1 wherein a “

buy threshold”

upper lit or for each of the investments is set according to a formula BT=M−

(SD×

Z), where BT=buy threshold, M=mean of values of the market price of the investment and Z is a confidence level multiplier of the standard deviation and said buy thresholds are stored in an investment analyzer module for use in generating said buy range.

6. A method in accordance with claim 1 wherein an upper limit of said sell range for at least one of said investments is a ninety day high value of daily market prices for said investment.

7. A method in accordance with claim 6 wherein a “

sell threshold”

lower limit or for said sell range is set according to the formula ST=M+(SD×

Z), where ST=sell threshold, M=mean of value of the market price of the investment and said buy thresholds are stored in an vestment analyzer module for use in generating said sell advice.

8. A method in accordance with claim 7 wherein said sell range for each of the investments is set as the range between said ninety day low on the bottom and the buy threshold on the top

9. A method in accordance with claim 1 wherein a lower limit or “

sell threshold”

for said sell range is set according to the formula ST=M+(SD×

Z), where ST=sell threshold, M=mean of value of the market price of the investment and said buy thresholds are stored in an investment analyzer module for use in generating said sell advice.

10. A method in accordance with claim 9 wherein a lower limit of said buy range for at least one of said investments is a ninety day low value of daily market prices for said investment.

11. A method in accordance with claim 10 wherein an upper limit of said sell range for at least one of said investments is a ninety day high value of daily market prices for said investment.

12. A method in accordance with claim 11 wherein a “

buy threshold”

upper limit of said buy range for each of the investments is set according to a formula BT=M−

(SD×

Z), where BT-buy threshold, M=mean of values of the market price of the investment and Z is a confidence level multiplier of the standard deviation and said buy thresholds are stored in an investment analyzer module for use in generating said buy range.

13. A method in accordance with claim 12 wherein said buy range for each of the investments is set as the range between said ninety day low on the bottom and the buy threshold on the top.

14. A method in accordance with claim 13 wherein said sell range for each of the investments is set as the range between said ninety day low on the bottom and the buy threshold on the top

15. A method in accordance with claim 14 wherein a buy signal is generated for one of the investments if the current price of that investment is within said buy range and is lower than the last buy price of that investment since the last sale of that investment.

16. A method in accordance with claim 15 wherein a buy signal is also generated for an investment if the current price of the investment is within said buy range and there has either been no buy of the investment or no buy of the investment since the last sale of the investment.

17. A method in accordance with claim 16 wherein a sell signal is generated for one of the investments if the current price of the investment is within said sell range and is higher than the last sell price of the investment since the last buy of the investment.

18. A method in accordance with claim 17 wherein a buy signal is also generated for one of the invests if the current price of the investment is within said buy range and there has either been no prior purchase of the investment or no purchase since the last sale of the investment.

19. A method in accordance with claim 1 wherein a recommended number of shares are set for any one of the investments for which a buy signal or sell signal respectively exists, by multiplying an amount of cash assigned to the investment times a buy ratio or sell ratio, respectively, for the investment.

20. A method in accordance with claim 19 wherein said buy ratio for one of the investment increases for a subsequent consecutive day, if any, during which a buy signal exists for said one investment and said sell ration increases for one of the investments for a successive consecutive day, if any, during which a sell signal exists for said one of the investments, respectively.

21. A method in accordance with claim 20 wherein said ratio increases in equal increments.

22. A method in accordance with claim 20 wherein said ratio increases in non-equal increments.

23. A method in accordance with claim 20 wherein said ratio increases only to a maximum value.

24. A method in accordance with claim 23 wherein said maximum value is about 0.90.

25. A method in accordance with claim 19 wherein said cash redistribution is at least partially in proportion to the magnitude of said requested shares of each investment.

26. A method in accordance with claim 15 wherein a sell signal is generated for one of the investments if the current price of that investment is within said buy range and is lower than the last price at which that investment was purchased

27. A method in accordance with claim 15 wherein a sell signal is also generated for said one of said investments if the current price of that investment is within said sell range and there has either been no prior sale of said investment or no sale since the last buy of said investment.

28. A method in accordance with claim 1 wherein a buy signal is generated for any one of the investments if the current price of said one investment is within said buy range and is lower than the last price at which said one investment was purchased and wherein a sell signal is generated for any one of the investments if the current price of said one investment is within said sell range and is higher than the last price at which said one investment was sold.

29. A method in accordance with claim 28 wherein a recommended number of shares are set for any one of said investments for which a buy signal or sell signal exists, by multiplying an amount of cash assigned to said one investment times a buy ratio or sell ratio, respectively.

30. A method in accordance with claim 29 wherein said cash redistribution is at least partially in proportion to the magnitude of said requested shares of each investment.

31. A method in accordance with claim 1 wherein a capital gain record is calculated and recorded during said recalculation on step in response to any said simulated buy for each of the investments sold.

32. A method in accordance with claim 31 wherein a total of said capital gains is stored in said computer memory for each of said investments.

33. A method of managing a portfolio of investments having a market price, comprising the steps of

a) selecting a plurality of variable price investments to be managed;

b) obtaining historical price data for each of said plurality of investments in the portfolio over a certain number of days;

c) statistically evaluating said historical price data to generate standard deviation of said price data for each of said investments;

d) calculating buy and sell threshold prices for each of said plurality of said investments in said portfolio by applying a confidence level to determine a desired probability that said threshold prices are lower and higher, respectively, than some desired percentage of prices in said historical data for each of said plurality of investments;

e) establishing as an upper and lower limit a historical high and historical low over a selected period

f) generating a buy signal for any of said plurality of investments that is below said buy threshold, above said lower limit and, if there has been any prior buy of said investment since a last sell of said investment, below the price of said prior buy;

g) generating a sell signal for any of said plurality of investments that is above said sell threshold, below said upper limit and, if there has been any prior sale of said investment since a last buy of said investment, above the price of said prior sale;

h) redistributing a portion of said available cash to each stock having a buy signal in accordance with a preset ration;

j) recalculating, in response to a signal indicative of user acceptance of said buy and sell signals for any one of said plurality of investments, said ownership quantity, overall cash quantity and portions for the investments based on said market price data in a simulated buy or sell according to said accepted advice; and

k) recording said recalculated data for each of the investments in the portfolio.

34. A method in accordance with claim 33, wherein said price data is obtained via a global information network and said buy and sell signals are calculated virtually immediately and said recalculations are performed in real-time.

35. A method in accordance with claim 33 further comprising a computerized evaluation mode where the program can be automatically and interactively simulated in seconds for simulated investments over a selected period of days to evaluate historical performance of said investments in said method.