Automatic trading system with computer aided decision-methods of when to buy and sell on stock exchanges

• US 8,600,859 B2
• Filed: 06/18/2008
• Issued: 12/03/2013
• Est. Priority Date: 06/24/2007
• Status: Active Grant

• Current Assignee: Soren Lanng
• Original Assignee: Soren Lanng
• Inventors: Lanng, Soren
• Primary Examiner(s): Bartley, Kenneth
• Application Number:
  US12/665,087
• Publication Number:
  US 20100174665A1
• Time in Patent Office: 1,994 Days
• Field of Search: 705/35, 705/36.R, 705/37
• US Class Current: 705/36.R
• 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 computerized trading system for trading a tradable product at stock exchanges where a user can define a number of criteria to be met in order for the system to allow/indicate a trade order of a selected Symbol or allow/indicate a pair trade of two selected Symbols. A method to format a data stream providing a novel result used for the calculation of technical indicators and the derived criteria and/or used for visual presentation of price movements of the tradable product in the computerized trading system by determining the time to close a bar. Product data having product prices is received at different times by the computer system, and the computer system for each closed bar has corresponding bar data buffers with data representing time of close of bar and last received product price at close of bar.

Claims

1. A computer-implemented method for defining and back testing at least one personal indicator based on at least one user selectable timeframe and user selectable criteria, the method comprising:

creating, by a computer, a multidimensional set of timeframes and criteria, wherein one dimension comprises timeframes and one dimension comprises criteria, and wherein at least one timeframe in the timeframes dimension relates to at least one criterion in the criteria dimension;

displaying, by the computer, the multi-dimensional set of timeframes and criteria;

selecting, by a user via the computer, at least one timeframe of a plurality of user selectable timeframes and at least one criterion of a plurality of user selectable criteria for a financial instrument, defining a personal indicator;

receiving, by the computer for at least one selected timeframe at least one set of data for the financial instrument of the timeframe, wherein the set of data includes price data;

receiving or calculating, by the computer, at least one value of a technical indicator;

back testing, by the computer, the personal indicator defined by the multidimensional set of the at least one selected timeframe and the at least one selected criterion, wherein the back testing is based on determining at least one value of at least one selected criterion and selected timeframe, said determining using at least one value from the technical indicator;

storing, by the computer at least one determined value from said back tested personal indicator.

2. The method of claim 1, wherein displaying the multi-dimensional set further comprises displaying a plurality of rows and a plurality of columns.

3. The method of claim 1, wherein displaying the multi-dimensional set further comprises a plurality of selectors for selecting criteria and where a selector may be a CheckBox, a SpinEdit, a ListBox, a ComboBox, or an AddBox/Window where a user adds a criterion to a box or window.

4. The method of claim 1, wherein displaying the multi-dimensional set further comprises that a user can add or remove a criterion or timeframe.

5. The method of claim 1, further receiving notification when a user has added or changed a timeframe or criteria in the displayed multi-dimensional set of timeframes and criteria.

6. The method of claim 1 wherein the criteria are further ordered based on criteria into groups or subpages.

7. The method of claim 1 wherein displaying the multi-dimensional set comprises a minimum of two timeframes from different financial instruments.

8. The method of claim 1 wherein the multi-dimensional set is based on criterion in the form of at least one programming line.

9. The method of claim 1, wherein displaying the multi-dimensional set comprises a criterion derived from a trade suggestion received from a mentor-trader.

10. The method of claim 1 in the step of back testing, wherein the value of a criterion at each time value has the value of true or false.

11. The method of claim 1, wherein the criteria in the dimension of criteria comprise both a buy-side and a sell-side version of the criteria, wherein the step of back testing uses the buy-side version of the criterion for determining the value of said criterion for buy-indications, and wherein the method uses the sell-side version of the criterion for determining the value of said criterion for sell-indications.

12. The method of claim 10, wherein a trade-indication is generated at a time value when all selected criteria are true at the time value.

13. The method of claim 12, wherein the trade-indications are used for automated order execution trading a financial instrument, wherein the trade-indication is either a sell-indication or a buy-indication.

14. The method of claim 1, wherein displaying the multi-dimensional set only displays a buy-side or a sell-side of the criteria in the dimension of criteria.

15. The method of claim 1, further comprising a plurality of criteria pages, wherein each criteria page comprises a multi-dimensional set of timeframes of financial instruments and criteria related to technical indicators.

16. The method of claim 15, wherein at least one of the plurality of criteria pages is defined to:

a) use sell trade-indications;

b) use buy trade-indications;

c) use both sell and buy trade-indications;

d) defines new trade-indications;

or e) defines exit trade-indications.

17. The method of claim 15, wherein the back testing comprises back testing of the plurality of criteria pages.

18. The method of claim 15, wherein at least one of the plurality of criteria pages is used for optimizing the personal indicator, wherein optimizing includes back testing all the combinations of the selected criteria in the at least one of the plurality of criteria pages.

19. The method of claim 1, wherein the creation of the multidimensional set of timeframes and criteria comprise a pre-selected criterion related to a pre-selected timeframe, defining the personal indicator.

20. The method of claim 1, wherein the receiving or calculating of a value from at least one technical indictor is performed during back testing.