Real-time adaptive moduluar risk management trading system for professional equity traders

• US 20060080211A1
• Filed: 10/08/2004
• Published: 04/13/2006
• Est. Priority Date: 08/26/2004
• Status: Abandoned Application

• Current Assignee: Mark Mooney, Timothy Anderson
• Original Assignee: Mark Mooney, Timothy Anderson
• Inventors: Anderson, Timothy, Mooney, Mark
• Application Number:
  US10/961,553
• Publication Number:
  US 20060080211A1
• Time in Patent Office: Days
• US Class Current: 705/37
• 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

The present invention provides traders with a real-time fed computer-based system for trading commodities based on a traders risk profile, particularly equities, by providing a careful selection of the data to analyze and selecting the correct manipulation of that data. The invention uses the initially selected data components or factors, by manipulating them with operators, or asset specific mathematical functions, a fuzzy or Baeysian advisors helps to assist in the genetic learning of the system by being rewards and punished based on the correlation to success and failure, and overlay advisors, or meta-advisors as they are implemented in the present invention. The invention provides several control or monitoring layers which can exit and recommend immediate action or adjust the neural-based computational processes, such as iteration, based on criteria in the interpreted “multiplexed” real-time data or a discovered neural relationship.

Claims

1. A computer-implemented method for assisting in an equity trade in which a processor is executing instructions that perform the following acts:

selecting from a group of mathematical operators to transform a set of arrays located in data storage;

performing said mathematical operations of a set of arrays, such that preliminary data is produced;

analyzing said preliminary data with a first set of Baeysian-logic functions, each with a corresponding adjustable weights; and

determining a recommendation for said equity based on said Baesyian logic analysis, and reporting said recommendation to a user as output; and

comparing an actual result for said equity to said recommendation and adjusting at least one of said Bayesian logic function corresponding weights for any future recommendation,

wherein the improvement includes setting an adjustable risk profile prior to said equity trade and providing a real-time data feed to said processor.

2. The method as recited in claim 1, wherein said recommendation is reported to a third-party trading system, said third-party trading system capable of performing rolling-stop losses.

3. The method as recited in claim 2, wherein the content of said output further includes using actual dollar prices.

4. The method as recited in claim 3, wherein said output includes forecasting a specific price movement for each stock.

5. The method as recited in claim 3, wherein said output includes with direction of movement, magnitude of movement, and confidence of movement.

6. The method as recited in claim 5, wherein said equity trade is not recommended unless said confidence level is above a user-specified target.

7. The method as recited in claim 5, wherein said equity trade cannot be placed unless said confidence level is above a target level.

8. The method as recited in claim 5, wherein said confidence data is normalized, such that it is scaled from 1 to 10.

9. The method as recited in claim 1, wherein said real-time data feed is modified prior being presented to said processor.

10. The method as recited in claim 9, wherein said modification involves a data translation step.

11. The method as recited in claim 10, wherein said data translation step changes real-time data into data corresponding to said set of arrays.

12. The method as recited in claim 11, wherein each element of said set of arrays is provided with updated information or a signal indicating that said element will not change.

13. A computer-implemented method for assisting in a commodity transaction in which a processor is executing instructions that perform the following acts:

selecting from a group of mathematical operators to transform a set of arrays located in data storage;

performing said mathematical operations of a set of arrays, such that preliminary data is produced;

analyzing said preliminary data with a first set of Baeysian-logic functions, each with a corresponding adjustable weights; and

determining a recommendation for said equity based on said Baesyian logic analysis, and reporting said recommendation to a user as output; and

comparing an actual result for said equity to said recommendation and adjusting at least one of said Bayesian logic function corresponding weights for any future recommendation, wherein said improvement includes the acts of;

setting a target interval for said analysis step;

providing a real-time data feed to said processor, said real-time data feed providing information for at least one of said set of arrays; and

performing said analysis step at each target interval.

14. The method as recited in claim 13, wherein said target interval is set manually.

15. The method as recited in claim 13, wherein said target interval is set automatically based on a trader-chosen factor.

16. The method as recited in claim 13, wherein said target interval is adjusted by shortening the interval.

17. The method as recited in claim 13, wherein said target interval is adjusted by shortening or lengthening said interval based on computational constraints.

18. The method as recited in claim 17, wherein said computational constraints are monitored.

19. The method as recited in claim 15, wherein said real-time feed is also fed to a commodity trading computer.

20. The method as recited in claim 19, wherein said target interval is shortened based on information flagged from said real-time data feed to said commodity trading computer, said commodity trading computer instructing said processor to shorten said target interval.

21. A computer-implemented method for assisting in an equity trade in which a processor is executing instructions that perform the following acts:

selecting from a group of mathematical operators to transform a set of arrays located in data storage;

performing said mathematical operations of a set of arrays, such that preliminary data is produced;

analyzing said preliminary data with a first set of Baeysian-logic functions, each with a corresponding adjustable weights; and

determining a recommendation for said equity based on said Baesyian logic analysis, and reporting said recommendation to a user as output; and

comparing an actual result for said equity to said recommendation and adjusting at least one of said Bayesian logic function corresponding weights for any future recommendation, wherein the improvement includes setting an adjustable risk profile for at least one equity trader and publishing stop loss and take profit levels generated by executable instructions,

22. The method as recited in claim 21, wherein the improvement further includes using interest rate data for said stored data arrays.

23. The method as recited in claim 21, wherein said computer-implemented method is compatible with a CYBERTRADER platform.