Method and system for intelligent automated security trading via the internet

• US 7,483,854 B2
• Filed: 01/24/2003
• Issued: 01/27/2009
• Est. Priority Date: 01/24/2003
• Status: Expired due to Fees

• Current Assignee: Valgo Incorporated
• Original Assignee: Michael C. Liu
• Inventors: Liu, Michael C.
• Primary Examiner(s): Hamilton; Lalita M
• Application Number:
  US10/351,240
• Publication Number:
  US 20040148242A1
• Time in Patent Office: 2,195 Days
• Field of Search: 705/35, 705/36.R, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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 method and system for intelligent automated security trading via the Internet, which provides an Automated Trading Service Center (ATSC), offering a Home Page Service and managing at least one Virtual Fund Manager (VFM) syst. The ATSC is a wireless e-commerce service center providing automated trading services to investors anytime anywhere. By accessing the HPS, the investor can interact with ATSC to develop a custom investment strategy based personal VFM system to automatically trade electronic trading based securities. The VFM is a real time running program incorporated by four engines: the Quote Processing Engine, the Decision Making Engine, the Order Execution Engine, and the Order Processing Engine. Under commands of ATSC server, the VFM can periodically retrieve quotation from the security exchange, monitor the market fluctuation by performing intensive calculations to detect the desired Buy/Sell timing as predetermined by investor'"'"'s proprietary investment strategy algorithms, and ultimately execute the transaction automatically.

Claims

1. A method of real time intelligent automated security trading via a wireless Internet, including but not limited to stock trading, futures trading, options trading, bonds trading and foreign currencies trading, comprising steps of:

providing an Automated Trading Service Center (ATSC) implemented by a web server offering a Home Page Service (HPS) and built a quote processing engine linking to at least one security exchange, an investor'"'"'s trading unit implemented by a desktop or mobile computing platform and built an order execution engine, and an on-line security broker built an order processing engine, wherein the ATSC, the investor'"'"'s trading unit, the on-line security broker and at least one security exchange communicate with each other via the wireless Internet;

a first part of the method under control of the Automated Trading Service Center (ATSC) having steps of;

engineering at least one decision making engine for each new investor by the HPS, wherein the decision making engine links to the quote processing engine and the engineering step has steps of;

providing a specification development cycle, wherein an investor accesses the HPS via the wireless Internet to set the investor'"'"'s investment strategy specification at the investor'"'"'s own discretion;

providing a coding development cycle for coding the investor'"'"'s investment strategy specification generated to form a decision making engine, which executes the investor'"'"'s proprietary investment strategy;

providing a simulation testing cycle for simulating algorithms of the investor'"'"'s investment strategy by integrating the developed decision making engine and the quote processing engine;

managing daily account activities for each active trader;

promoting automated trading services to prospective customers; and

under control of the ATSC executing at least one custom developed automated security trading system having steps of;

retrieving market information from the at least one security exchange by the quote processing engine periodically, wherein the market information at least has fluctuation quotation and market open/close trading time in real time;

monitoring the market open/close trading times;

making investment decisions by periodically analyzing and calculating the market information to automatically determine each investor'"'"'s desirable buy/sell timing in accordance with each investor'"'"'s own investment strategy algorithms implemented in the corresponding decision making engine; and

notifying the investor'"'"'s trading unit of an investment instruction whenever timing of placing an order is detected based on the investment decisions;

a second part of the method under control of the investor'"'"'s trading unit having a home page service access interface and an order execution engine and performing subsequent functions of the order execution engine having steps of;

receiving investment instructions from the ATSC;

executing an order placing process, wherein an order is automatically sent; and

setting an operation mode to an auto trading mode, which is operated in the order execution engine and comprising steps of;

receiving notification to place orders from the decision making engine;

sending orders automatically to the order processing engine located at the on-line security broker; and

judging whether the market trading time is due to end today'"'"'s operation when time is out, wherein if a judging result is positive the auto trading mode is ended, but if not, go back to the receiving notification step; and

a third part of the method under the control of the on-line security broker performing subsequent functions of the order processing engine having steps of;

receiving the orders from the second part in the investor'"'"'s trading unit; and

finalizing transactions with the at least one security exchange, wherein the on-line security broker completes the transaction by executing the order placing process of the investor'"'"'s trading unit.

2. The method as claimed in claim 1, wherein the HPS provides various electronic commerce services comprising:

a first portion of the electronic commerce services provided to an engineering service and having a personal investment strategy specification development, a personal investment strategy coding development and a personal virtual fund manager simulation;

a second portion of the electronic commerce services providing daily account activities management and having customer account information and personal virtual fund manager activation; and

a third portion of the electronic commerce services provided to the step of promoting automated trading services and has Financial Information, Technical Analysis service, Trend Forecast, Training Simulator and Day Trade Education.

3. The method as claimed in claim 1, wherein

the order processing engine of the on-line security broker further comprises a step of sending notification of completing the transactions after the step of finalizing transactions;

and

the auto trading mode of the investor'"'"'s trading unit further comprises

a step of receiving the notification from the on-line security broker to confirm whether the transactions are completed after step of sending the orders automatically to the order processing engine.

4. The method as claimed in claim 3, wherein features of the order execution engine is implemented as part of the investor'"'"'s investment strategy algorithm in the custom built decision making engine to enable the ATSC to automatically send orders to the order processing engine located at the on-line security broker.