Calculating predictive technical indicators

• US 20110137821A1
• Filed: 12/07/2009
• Published: 06/09/2011
• Est. Priority Date: 12/07/2009
• Status: Active Grant

• Current Assignee: Predictive Technologies
• Original Assignee: Predictive Technologies
• Inventors: Mendelsohn, Louis B.
• Granted Patent: US 8,560,420 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 10/067 Enterprise or organisation modelling
• 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

A suite of predictions is defined to model the financial data commonly used to calculate technical indicators one or more periods in the future. Neural networks are trained to make these predictions. The predictions are then integrated with the standard technical indicator calculations to produce predictive technical indicators which are superior because they lead more and lag less.

Claims

1. A computer-implemented method of calculating a technical indicator of a market, the method comprising the steps of:

obtaining historical data relating to the market from a server comprising a database of historical time series data for the market;

obtaining predicted future data relating to the market;

using both the historical data and the predicted future data to calculate the technical indicator; and

outputting the calculated technical indicator.

2. The method of claim 1, wherein the step of obtaining predicted future data relating to the market is performed using a predictive server that uses intermarket analysis data to train a neural network to predict financial time series data for the market.

3. The method of claim 2, wherein the predictive server comprises at least four selected from the group consisting of:

a market manager component, an historical data manager, a neural network trainer, a trading application builder, an intermarket analysis component, a technical analysis component, a predictive technical analysis component, and a predictive server database.

4. The method of claim 3, wherein the predictive server comprises a market manager component, an historical data manager, a neural network trainer, a trading application builder, an intermarket analysis component, a technical analysis component, a predictive technical analysis component, and a predictive server database.

5. The method of claim 1, wherein the calculated technical indicator is communicated to a trading application via a communications network.

6. The method of claim 3, wherein the trading application comprises a watch lists component, a charts component, a grids component, a reports component, an intermarket analysis component, a technical analysis component, a predictive technical analysis component, and a predicative trader database.

7. The method of claim 1, wherein the market is a stock or other financial instrument.

8. The method of claim 1, wherein the market is a commodity or futures market.

9. The method of claim 1, wherein the market is a currency.

10. A system for calculating a technical indicator of a market, the system comprising:

a first server comprising a database of historical time series data for the market;

a second server that uses intermarket analysis data to train a neural network to generate predicted financial time series data for the market; and

a computer in communication with the first and second servers, and comprising computer-usable program code that uses both historical time series data for the market and the predicted financial time series data for the market to calculate the technical indicator.

11. The system of claim 10, wherein the second server comprises a market manager component, an historical data manager, a neural network trainer, a trading application builder, an intermarket analysis component, a technical analysis component, a predictive technical analysis component, and a predictive server database.

12. The system of claim 10, wherein the system further comprises a trading application, and the calculated technical indicator is communicated to the trading application via a communications network.

13. The system of claim 12, wherein the trading application comprises a watch lists component, a charts component, a grids component, a reports component, an intermarket analysis component, a technical analysis component, a predictive technical analysis component, and a predicative trader database.

14. The system of claim 10, wherein the market is a stock or other security.

15. The system of claim 10, wherein the market is a commodity or futures market.

16. The system of claim 10, wherein the market is a currency.

17. A computer program product comprising a computer-usable medium comprising computer-usable program code that, when executed by a computer, calculates a technical indicator for a market, the computer-usable medium comprising:

computer-usable program code that uses both historical time series data for the market and predicted financial time series data for the market obtained using a neural network that is trained using intermarket analysis data to calculate the predictive technical indicator.

18. The computer program product of claim 17, wherein the market is a stock or other security.

19. The computer program product of claim 17, wherein the market is a commodity or futures market.

20. The computer program product of claim 17, wherein the market is a currency.