Apparatus, method and system for adaptively managing investments

• US 6,188,992 B1
• Filed: 08/18/1998
• Issued: 02/13/2001
• Est. Priority Date: 08/18/1997
• Status: Expired due to Fees

• Current Assignee: Monitor Financial Corporation
• Original Assignee: Monitor Financial Corporation
• Inventors: French, Fredric J.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Tesfamariam, Mussie
• Application Number:
  US09/136,189
• Time in Patent Office: 910 Days
• Field of Search: 705/14, 705/37, 705/35, 705/36
• US Class Current: 705/36.00R
• 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 an apparatus, method and system for managing investments having one or more characteristics. The present invention creates three or more investment agents, each investment agent having one or more characteristics, and selects an investment for each investment agent by comparing the investment agent'"'"'s one or more characteristics to the investment'"'"'s one or more characteristics. The selected investment for each investment agent is then acquired if the selected investment is not currently owned by the investment agent. After a period of time has elapsed, the selected investments are managed by: evaluating the performance of each investment agents; eliminating each investment agent whose performance is less than a specified performance level; and creating one or more new investment agents, each new investment agent having one or more characteristics derived from two or more of the investment agents whose performance is equal to or greater than the specified performance level.

Claims

1. A method for managing three or more investments, each investment having one or more characteristics, the method comprising the steps of:

(a) creating three or more investment agents, each investment agent having one or more characteristics;

(b) selecting an investment for each investment agent by comparing the investment agent'"'"'s one or more characteristics to the investment'"'"'s one or more characteristics;

(c) acquiring the selected investment for each investment agent if the selected investment is not currently owned by the investment agent;

(d) after a period of time has elapsed, managing the selected investments by;

(d1) evaluating the performance of each investment agent,

(d2) eliminating each investment agent whose performance is less than a specified performance level and scheduling the selected investment for each eliminated investment agent for sale, and

(d3) creating one or more new investment agents, each new investment agent having one or more characteristics derived from two or more of the investment agents whose performance is equal to or greater than the specified performance level; and

(e) repeating steps (b) and (c).

2. The method for managing three or more investments, as recited in claim 1 wherein step (e) comprises repeating steps (b), (c) and (d) until management of the three or more investments is not required.

3. The method for managing three or more investments, as recited in claim 1 wherein the selected investment is acquired by transferring the selected investment from one of the investment agents to another of the investment agents.

4. The method for managing three or more investments, as recited in claim 1 wherein the selected investment is acquired by purchasing the selected investment.

5. The method for managing three or more investments, as recited in claim 1 wherein step (c) comprises acquiring the selected investment for each investment agent if the selected investment is not currently owned by the investment agent and the acquisition will not exceed an investment turnover rate limit.

6. The method for managing three or more investments, as recited in claim 1 wherein step (c) comprises acquiring the selected investment for each investment agent if the selected investment is not currently owned by the investment agent and the acquisition will not exceed a percentage investment limit.

7. The method for managing three or more investments, as recited in claim 1 wherein the performance of each investment agent is evaluated by calculating the overall return for the investment currently owned by the investment agent.

8. The method for managing three or more investments, as recited in claim 1 wherein the one or more characteristics of the investments and investment agents are represented by one or more alphanumeric characters, each alphanumeric character indicating either the absence of a condition, the presence of the condition, or that the condition is irrelevant.

9. The method for managing three or more investments, as recited in claim 1 wherein the specified performance level is based on a performance ranking of the three or more investment agents.

10. The method for managing three or more investments, as recited in claim 1 wherein the specified performance level is a specific rate of return.

11. The method for managing three or more investments, as recited in claim 1 wherein a small percentage of the new investment agents are mutated by randomly modifying one or more of the new investment agent'"'"'s characteristics.

12. The method for managing three or more investments, as recited in claim 1 wherein step (d3) comprises creating one or more new investment agents, each new investment agent having one or more characteristics derived by determining a cross over point based on the characteristics of a first and second investment agent whose performances are equal to or greater than the specified performance level, copying the characteristics occurring before the cross over point of the first investment agent to the new investment agent, and copying the characteristics occurring after the cross over point of the second investment agent to the new investment agent.

13. The method for managing three or more investments, as recited in claim 1 further comprising the step of:

(d4) dividing the investment currently owned by the investment agent between the investment agent and a new investment agent if the value of the investment exceeds a value limit.

14. A computer program embodied on a computer-readable medium for managing three or more investments, each investment having one or more characteristics, the computer program comprising:

a code segment for creating three or more investment agents, each investment agent having one or more characteristics;

a code segment for selecting an investment for each investment agent by comparing the investment agent'"'"'s one or more characteristics to the investment'"'"'s one or more characteristics;

a code segment for acquiring the selected investment for each investment agent if the selected investment is not currently owned by the investment agent; and

a code segment for managing the selected investments by evaluating the performance of each investment agent, eliminating each investment agent whose performance is less than a specified performance level, scheduling the selected investment for each eliminated investment agent for sale, and creating one or more new investment agents, each new investment agent having one or more characteristics derived from two or more of the investment agents whose performance is equal to or greater than the specified performance level.

15. The computer program for managing three or more investments, as recited in claim 14 wherein the selected investment is acquired by transferring the selected investment from one of the investment agents to another of the investment agents.

16. The computer program for managing three or more investments, as recited in claim 14 wherein the selected investment is acquired by purchasing the selected investment.

17. The computer program for managing three or more investments, as recited in claim 14 wherein the performance of each investment agent is evaluated by calculating the overall return for the investment currently owned by the investment agent.

18. The computer program for managing three or more investments, as recited in claim 14 wherein the one or more characteristics of the investments and investment agents are represented by one or more alphanumeric characters, each alphanumeric character indicating either the absence of a condition, the presence of the condition, or that the condition is irrelevant.

19. The computer program for managing three or more investments, as recited in claim 14 wherein the specified performance level is based on a performance ranking of the three or more investment agents.

20. A system for managing three or more investments, each investment having one or more characteristics, the system comprising:

a computer;

means for purchasing and selling the three or more investments;

a communications link connecting the computer to the investment purchasing and selling means;

a database communicably linked to the computer for storing three or more investment agents, each agent having one or more characteristics; and

a computer program resident on the computer for creating the three or more investment agents, selecting an investment for each investment agent by comparing the investment agent'"'"'s one or more characteristics to the investment'"'"'s one or more characteristics, acquiring the selected investment for each investment agent if the selected investment is not currently owned by the investment agent, and managing the selected investments by evaluating the performance of each investment agent, eliminating each investment agent whose performance is less than a specified performance level, scheduling the selected investment for each eliminated investment agent for sale, and creating one or more new investment agents, each new investment agent having one or more characteristics derived from two or more of the investment agents whose performance is equal to or greater than the specified performance level.