Systems and methods for price evaluation of articles of commerce

• US 8,612,334 B2
• Filed: 05/31/2012
• Issued: 12/17/2013
• Est. Priority Date: 03/24/2000
• Status: Expired due to Term

• Current Assignee: Microquant LLC
• Original Assignee: Microquant LLC
• Inventors: Helweg, Mark W.
• Primary Examiner(s): Hamilton, Lalita M
• Application Number:
  US13/485,376
• Publication Number:
  US 20130030976A1
• Time in Patent Office: 565 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

The invention is directed to systems and methods for indicating volatility adjusted price information for at least one article of commerce or market therefore, and various tools for providing valuation indicators for both current and historical price activity in terms of valuation rather than absolute price. The invention provides users indicators which quantify the degree in which a market is currently trading at fair value, overvalued or undervalued conditions using enhanced tools.

Claims

1. A system for facilitating the making of a trading decision relative to an article of commerce, said system comprising:

a programmable computer having a central processing unit (CPU);

a communication device linked to said computer for receiving a collection of price data relating to an investment from a data source;

a software program for providing a set of instructions to said computer to receive and process said collection of price data related to the article of commerce to generate volatility-adjusted relative price data related to the article of commerce and to generate an indication of a valuation state of a market for the article of commerce as being currently priced at a fair value, as overvalued or as undervalued;

the software program providing information for display in the form selected from the group consisting of a known price chart relating to the article of commerce, a volatility adjusted price chart related to the article of commerce, a profile related to the article of commerce showing the historical behavior of the volatility adjusted price information, the current valuation state of the article of commerce and combinations thereof.

2. The system according to claim 1, wherein the information is displayed on a display with a known price chart on the display and a volatility adjusted price chart on the display and positioned adjacent the known price chart.

3. The system according to claim 1, wherein the information is displayed on a display and includes a known price chart on the display, a volatility adjusted price chart on the display and a profile showing the historical behavior of the volatility adjusted price information on the display.

4. The system according to claim 1, wherein the information for display further comprising a percentage indicator of trading activity.

5. The system according to claim 1, wherein the information for display further comprising an indicator indicating the current valuation state of the article of commerce.

6. The system according to claim 1, wherein the indicator indicating the current valuation state is a color, with at least one color for each of the valuation states of fair value, overvalued or as undervalued.

7. The system according to claim 1, wherein a user may place an order relative to the article of commerce when a particular event relating to the current valuation state of the article of commerce arises.

8. A system for facilitating the making of a trading decision relative to an article of commerce, said system comprising:

a programmable computer having a central processing unit (CPU);

a communication device linked to said computer for receiving a collection of price data relating to an investment from a data source;

a software program for providing a set of instructions to said computer to receive and process said collection of price data related to the article of commerce to generate volatility-adjusted relative price data related to the article of commerce and to generate an indication of a state of a market for the article of commerce as being currently priced at a fair value, as overvalued or as undervalued;

the software program providing information relating to the volatility adjusted price information relating to the article of commerce, enabling a user to specify buying or selling the article of commerce using the designated valuation of fair value, moderately overvalued or undervalued, or significantly overvalued or undervalued or combinations thereof.

9. The system according to claim 8, wherein the user can specify buying or selling the article of commerce via communication device.

10. The system according to claim 8, wherein the user can specify buying or selling the article of commerce which occurs automatically upon the designated valuation occurring.

11. A system for facilitating the making of a trading decision relative to an article of commerce, said system comprising:

a programmable computer having a central processing unit (CPU);

a communication device linked to said computer for receiving a collection of price data relating to an investment from a data source;

a software program for providing a set of instructions to said computer to receive and process said collection of price data related to the article of commerce to generate volatility-adjusted relative price data related to the article of commerce and to generate an indication of a state of a market for the article of commerce as being currently priced at a fair value, as overvalued or as undervalued;

the software program providing information for communicating volatility adjusted price information related to the article of commerce and indicating the occurrence of a defined condition or event.

12. The system according to claim 11, wherein the user can specify buying or selling the article of commerce via communication device upon the occurrence of the defined condition or event.

13. The system according to claim 11, wherein the user can specify buying or selling the article of commerce which occurs automatically upon the occurrence of the defined condition or event;

the software program providing information for communicating volatility adjusted price information related to the article of commerce and indicating the volume of trading activity for the article of commerce at each price level within a predetermined range of volatility adjusted price information.

14. A system for facilitating the making of a trading decision relative to an article of commerce, said system comprising:

a programmable computer having a central processing unit (CPU);

a communication device linked to said computer for receiving a collection of price data relating to an investment from a data source;

a software program for providing a set of instructions to said computer to receive and process said collection of price data related to the article of commerce to generate volatility-adjusted relative price data related to the article of commerce and to generate an indication of a state of a market for the article of commerce as being currently priced at a fair value, as overvalued or as undervalued;

the software program providing information for communicating volatility adjusted price information related to the article of commerce and indicating the volume of trading activity for the article of commerce at each price level within a predetermined range of volatility adjusted price information.

15. The system according to claim 14, wherein the information for communicating volatility adjusted price information related to the article of commerce is via price bars and the volume of trading activity takes into consideration the volume of trading activity at each tick price level within a given price bar.

16. The system according to claim 14, further comprising an indication of a profile related to the article of commerce showing the historical behavior of the volatility adjusted price information, with the profile including information on volume of trading activity for the article of commerce.

17. A system for facilitating the making of a trading decision relative to an article of commerce, said system comprising:

a programmable computer having a central processing unit (CPU);

a communication device linked to said computer for receiving a collection of price data relating to an investment from a data source;

a software program for providing a set of instructions to said computer to receive and process said collection of price data related to the article of commerce to generate volatility-adjusted relative price data related to the article of commerce and to generate an indication of a state of a market for the article of commerce as being currently priced at a fair value, as overvalued or as undervalued;

the software program providing information for indicating a profile related to the article of commerce showing the historical behavior of the volatility adjusted price information related to the article of commerce and created using composite information relating to a plurality of contributing profiles.

18. The system according to claim 17, wherein the information for indicating a profile includes an average of several subordinate profiles.

19. The system according to claim 18, wherein the subordinate profiles are generated from data selected from multiple time frames, a single or several different markets or combinations thereof.

20. The system according to claim 18, further comprising an indicator showing the average valuation level from the subordinate profiles.