Method and system for intelligent automated security trading via the Internet

• US 20040148242A1
• Filed: 01/24/2003
• Published: 07/29/2004
• Est. Priority Date: 01/24/2003
• Status: Active Grant

• Current Assignee: Valgo Incorporated
• Original Assignee: Michael C. Liu
• Inventors: Liu, Michael C.
• Granted Patent: US 7,483,854 B2
• Time in Patent Office: Days
• 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) system. 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 the wireless Internet, including but not limited to stock trading, futures trading, options trading, bonds trading, and foreign currencies trading, comprising steps of:

under control of an Automated Trading Service Center (ATSC) web server system offering Home Page Service (HPS) has steps of;

engineering custom automated security trading system for each new investor;

managing daily account activities for each active trader;

promoting automated trading services to prospective customers; and

under control of the Automated Trading Service Center (ATSC) web server system executing at least one automated security trading system known as the personal Virtual Fund Manager (VFM) has further steps of;

retrieving market fluctuation quotation from at least one security exchange;

monitoring market open/close trading time;

making investment decision in accordance with each investor'"'"'s own investment strategy; and

notifying the Investor'"'"'s Trading Unit an investment instruction whenever timing of placing an order is detected based on the investment decision.

under control of a desktop/mobile client system located at the Investor'"'"'s Trading Unit performing subsequent functions of the personal Virtual Fund Manger has steps of;

receiving the investment instruction from ATSC web server system;

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

setting operation mode at auto trading mode or semi-auto trading mode; and

under the control of an On-Line Security Broker performing subsequent functions of the personal Virtual Fund Manger has steps of;

finalizing transaction with at least one electronic security exchange wherein the On-Line Security Broker completes the transaction by executing an order placing process of the Investor'"'"'s Trading Unit.

2. The method as claimed in claim 1, wherein the step of engineering custom automated security trading system for each new investor further comprises the sub-steps of:

developing a personal investment strategy specification at investor'"'"'s discretion;

programming a Decision Making Engine in accordance with the investment strategy specification; and

testing the functionality of the program by running a personal Virtual Fund Manager simulator.

3. The method as claimed in claim 2, wherein the step of programming the Decision Making Engine further comprises the steps of:

coding the investment strategy specification for forming the Decision Making Engine;

integrating the Decision Making Engine with a Quote Processing Engine to form partial of investor'"'"'s personal Virtual Fund Manager system jointly running in ATSC web server; and

creating a personal Virtual Fund Manager simulator.

4. The method as claimed in claim 1, wherein the step of managing daily account activities for each investor further comprises the steps of:

activating investors'"'"' personal Virtual Fund Manager systems for daily transaction; and

updating account information of investors'"'"' daily trading activities.

5. The method as claimed in claim 1, wherein the step of promoting automated trading services to prospective customers further comprises the step of:

providing a financial information service, a technical analysis service, a trend forecast service, a training simulator service and a day trade education service.

6. The method as claimed in claim 1, wherein the step of auto trading mode operated in an Order Execution Engine located at Investor'"'"'s Trading Unit further comprises the steps of:

receiving the notification for placing order from the Decision Making Engine in the web server;

sending an order automatically to an Order Processing Engine located at On-Line Security Broker;

receiving the notification from the on-line security broker to confirm the result of the transaction; and

judging whether the market trading time is due to end today'"'"'s operation when time out.

7. The method as claimed in claim 1, wherein the step of semi-auto trading mode operated in an Order Execution Engine located at Investor'"'"'s Trading Unit further comprises the steps of:

receiving the notification from the Decision Making Engine in the ATSC web server for an immediate investment opportunity to place an order; and

determining whether to proceed the transaction at investor'"'"'s discretion.

8. A web server system for intelligent automated security trading via the wireless Internet based communications network comprises an Automated Trading Service Center (ATSC) to provide electronic commerce services to investors.

9. The system as claimed in claim 8, wherein the Automated Trading Service Center (ATSC) interacting with at least one Investor'"'"'s Trading Unit further comprises:

a Home Page Service (HPS) operative to develop custom investment strategy based personal Virtual Fund Manager (VFM) system;

a Home Page Service further operative to manage investor'"'"'s daily investment account activities; and

a Home Page Service further operative to promote automated security trading to prospective customers.

10. The system as claimed in claim 9, wherein at least one Virtual Fund Manager system running in ATSC web server further comprises:

a Quote Processing Engine (also known as VFM-1) interacted with at least one Security Exchange to retrieve real time market information; and

a Decision Making Engine (also known as VFM-2) running in real time to analyze, calculate, and determine the buy/sell timing according to the predetermined investment strategy algorithms.

11. The system as claimed in claim 10, wherein a Virtual Fund Manager system running in Investor'"'"'s Trading Unit further comprises:

an Order Execution Engine (also known as VFM-3) with functionalities to receive order instructions from the Decision Making Engine and to place order with the On-Line Security Broker.

12. The system as claimed in claim 11, wherein a Virtual Fund Manager system running in On-Line Security Broker further comprises:

an Order Processing Engine (also known as VFM-4) with functionalities to receive order instructions from the Order Execution Engine and to place order with the Security Exchange.

13. The system as claimed in claim 8, wherein the Decision Marking Engine, the Order Execution Engine and the Order Processing Engine communicate with each other to provide an auto trading mode and a semi-auto trading mode, wherein

the auto trading mode authorizes that the Order Execution Engine automatically places the orders to the Order Processing Engine when the ATSC sends a buy/sell instruction to the Order Execution Engine;

and

the semi-auto trading mode authorizes that the ATSC sends a buy/sell instruction to the Order Execution Engine to alert the investor to handle the subsequent investment activities by himself/herself.