WO2002069079A2 - Systeme permettant de simuler la negociation d'actifs financiers - Google Patents

Systeme permettant de simuler la negociation d'actifs financiers Download PDF

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Publication number
WO2002069079A2
WO2002069079A2 PCT/US2002/001076 US0201076W WO02069079A2 WO 2002069079 A2 WO2002069079 A2 WO 2002069079A2 US 0201076 W US0201076 W US 0201076W WO 02069079 A2 WO02069079 A2 WO 02069079A2
Authority
WO
WIPO (PCT)
Prior art keywords
computer
software executing
trade
time intervals
repeatedly
Prior art date
Application number
PCT/US2002/001076
Other languages
English (en)
Other versions
WO2002069079A3 (fr
Inventor
Fang Ma
Kay Ng
Nan Lu
Bin Li
Original Assignee
Westport Financial Llc
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Westport Financial Llc filed Critical Westport Financial Llc
Priority to AU2002237829A priority Critical patent/AU2002237829A1/en
Publication of WO2002069079A2 publication Critical patent/WO2002069079A2/fr
Publication of WO2002069079A3 publication Critical patent/WO2002069079A3/fr

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Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/04—Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Definitions

  • the invention relates to a system for providing an environment in which to simulate a financial market and, more particularly, to a system for providing a test environment for trading assets.
  • a disadvantage of these systems is that an investor is not -permitted-t ⁇ -ehange-or— vary-his/her— parameters— onee-they— are-speeified- Hence, a user cannot use intuition in making trading decisions that vary from the initially specified parameters.
  • Another disadvantage of the known systems is that an investor can specify, on a trial and error basis, various parameters until he/she achieves a successful performance when compared with historical data of that stock. This defeats the purpose of a testing environment for trading financial assets because an investor is not learning to improve his/her skills but is learning to try endless possibilities until a correct combination of parameters is found.
  • system for simulating trading of financial assets comprising a computer, software executing on the computer for displaying a first of the plurality of time intervals and a corresponding price, software executing on the computer for receiving an indication of a decision to trade, software executing on the computer for simulating a trade of a financial asset, software executing on the computer for repeatedly displaying a next time interval and a next corresponding price of the plurality of time intervals and corresponding prices, software executing on the computer for repeatedly receiving indications of decisions to trade, and software executing on the computer for repeatedly simulating trades.
  • the plurality of time intervals and corresponding prices may further be based upon fictitious and/or historical data.
  • Historical data includes news, stories, events, market performance, and combinations thereof.
  • the plurality of time intervals and corresponding prices may further be displayed graphically or in any manner that simulates a trading environment.
  • the system may provide recommendations related to the user's trading performance.
  • the recommendations may include a comparison with financial benchmarks, historical data, and/or the performances of other users.
  • time intervals and prices, as well as recommendations, may be for a portfolio of assets being traded and for multiple users or investors.
  • the system may further include time intervals and corresponding prices that do not indicate their origin.
  • the test environment will not provide any information that may influence an investor's trading decisions.
  • the time period, news, or analysis related to the displayed time intervals or prices which may be based upon historical data, are not displayed.
  • the historical data used to provide the time intervals and price may be randomly retrieved. This further ensures that the displayed test environment will not be recognizable or predictable.
  • the system further includes software executing on the computer for receiving a user request for specified information and software executing on the computer for displaying the specified information.
  • software executing on the computer for displaying the specified information.
  • certain historical data such as news surrounding the performance of the displayed time interval and corresponding price, may be requested and displayed as part of the test environment.
  • the specified information will influence the user's decision making techniques, the information will typically decrease the frustration generally associated with being novice investors. However, for a realistically simulated trading environment, no specified information should be requested.
  • a method for a simulated trading environment for trading financial assets comprises displaying a first of a plurality of time intervals of a financial asset, displaying a first corresponding price of the first time interval, receiving an indication of a decision to trade the financial asset, simulating the trade, repeatedly displaying a next time interval of the plurality of time intervals, repeatedly displaying a next corresponding price of the time interval, repeatedly receiving an indication of a decision to trade the financial asset, and repeatedly simulating the trades.
  • the method may further comprise the step of receiving user specified information for help in making trading decisions. Further, the method may include the step of displaying the requested specified information.
  • FIG. 1 depicts a system for simulating trading of financial assets in accordance with the invention.
  • FIG. 2 depicts a method for simulating trading of financial assets in accordance with the invention.
  • FIG. 3 depicts an example of the recommendations provided by the system.
  • FIG. 4 depicts an example of the test environment provided by the system.
  • FIG. 1 depicts the system for simulating trading of financial assets in accordance with the invention.
  • System 10 comprises computer 14, software 22 executing on computer 14 for displaying a first of a plurality of time intervals and a corresponding price, software 24 executing on computer 14 for receiving an indication of a decision to trade, software 26 executing on computer 14 for simulating a trade of a financial asset, software 28 executing on computer 14 for repeatedly displaying a next time interval and a next corresponding price of the plurality of time intervals and corresponding prices, software 42 executing on computer 14 for repeatedly receiving indications of decisions to trade, and software 20 executing on computer 14 for repeatedly simulating trades.
  • System 10 provides a testing environment for trading financial assets that realistically simulates the financial market.
  • a financial asset's performance resulting from trades made may be shown in any manner for representing a financial asset's performance.
  • One manner is a graphical representation of market price versus time, as shown in FIG. 4.
  • a user, or investor, using user terminal 36 instructs system 10 to trade the financial asset.
  • the instructions to trade are gathered by software 38 for gathering data and recorded in database 60.
  • the user's trades 36 are subsequently carried out and shown on the testing environment by software 26 executing on computer 14 for simulating the trade.
  • This cycle of depicting a financial asset's performance and simulating a trade based upon a user's instructions is continuous for a user determined time period, at the conclusion of which software 32 executing on computer 14 for evaluating a user's performance provides recommendations 34 to the user.
  • Recommendations 34 include a comparison between the user's performance of trading the financial asset and performance based on historical data of the financial asset. Recommendations 34 also include comparisons with financial benchmarks, such as the Dow Jones, S & P 500, NASDAQ, and/or Russell 2000. Recommendations 34 also include commentary, analysis, and other information related to the user's instructions to trade and historical data. Where the user has made a plurality of instructions to trade a portfolio of assets, recommendations 34 further include a comparison of all the assets with one another as well as the overall performance as compared with historical data. Where multiple users have made multiple instructions to trade, recommendations 34 include a comparison among the multiple users. In all of the above cases, statistical analysis may be used for providing percentages of accuracy and standards of deviation from historical data. An example of recommendations 34 is shown in FIG. 3.
  • user terminal 36 is a computer terminal in communication with computer 14.
  • the communication may be an Internet connection or any connection for linking user terminal 36 with computer 14 so that a testing environment may be depicted on user terminal 36 from computer 14 and instructions 40 to trade may be received on computer 14 from user terminal 36.
  • Software 24 executing on computer 14 for receiving an indication of a decision to trade receives the user's instructions and thereafter software 26 executing on computer 14 for simulating the trade of a financial asset carries out and displays the trade for the user to see on the test environment.
  • Software 28 displays the next time interval and the next corresponding price and software 42 receives the next instructions for trading.
  • the cycle repeats continuously until a predetermined time period expires.
  • the predetermined time period is the length of time of the test and is arbitrarily determined by the user prior to beginning the test.
  • the predetermined time period may be in terms of minutes, hours, days, weeks, months, or years.
  • the time intervals, price, and test environment provided by system 10 are based upon historical data stored and retrieved from database 60.
  • the historical data includes foreign assets, domestic assets, bonds, money markets, and stock.
  • system 10 does not indicate the identity of the historical data or the origin of the information used to provide the test environment. This is so that any prior knowledge the user may have about past market conditions will not influence his/her trading decisions. This ensures a realistic trading environment because investors, in actuality, are unaware of events and their future effect on an asset's performance.
  • the time interval and corresponding price displayed by software 22 and software 28 are based upon an actual asset performance.
  • Historical data surrounding the financial asset such as the date of occurrence, news, or events, are not displayed. For example, media coverage, news, and critiques related to "Black Monday", a day when stocks precipitously declined, occurred on October 19, 1987.
  • System 10 may provide a test environment based upon an asset's performance during the Black Monday period to test an investor's trading decisions in these elements. But during the test, the user will have no idea he/she is being subjected to the Black Monday conditions.
  • software 38 for gathering data from database 60 randomly gathers 66 the data upon which the time interval and price are based. This further ensures that the time interval and price displayed are not predictable or recognizable to the user.
  • database 60 is updated on a real time basis with real time data 62.
  • Software 64 executing on computer 14 for automatically updating the database updates database 60 with current information.
  • fictitious data is stored on database 60 in addition to, or instead of, historical data.
  • Fictitious data is used by software 22 for displaying a time interval and corresponding price.
  • This embodiment has all the limitations of the embodiment depicted in FIG. 1 but simply uses fictitious data in addition to, or instead of, historical data.
  • the user may make a request 44 for specified information related to the financial market.
  • Request 44 may be for certain news, events, historical data, or other data related to the displayed time interval and price to be known so that an investor may have assistance in making trading decisions. This may be advantageous if the user is a novice investor and desires certain data to be known to aid him/her.
  • the amount or types of specified information vary depending on request 44 submitted by the user. Although the specified information may influence an investor's decision making techniques, it generally decreases frustration often associated with being a novice investor. This embodiment does not provide the realistic test environment as shown in FIG. 1 , which does not provide any specified information to influence an investor's decisions.
  • FIG. 2 depicts the method for simulating trading of financial assets in accordance with the invention.
  • Method 110 comprises displaying 112 a first of a plurality of time intervals of a financial asset, displaying 114 a first corresponding price of the first time interval, receiving 116 an indication of a decision to trade the financial asset, simulating 118 the trade, repeatedly displaying 128 a next time interval of the plurality of time intervals, repeatedly displaying 120 the next corresponding price of the time interval, repeatedly receiving 124 an indication of a decision to trade the financial asset, and repeatedly simulating 126 the trades.
  • a user first begins method 110 by logging onto computer 14. Upon logging in, method 110 begins with a first step of displaying 112 a first of a plurality of time intervals of a financial asset and, contemporaneously, displaying 114 a corresponding price of the financial asset.
  • the next step of method 110 is receiving 116 a user instruction to trade the financial asset.
  • This instruction includes buying, selling, or staying the financial asset.
  • method 110 simulates 118 the trade according to the user instructions and displays the simulated trade for the user.
  • Subsequent steps of method 110 are repeatedly displaying 128 the next time interval of the plurality of time intervals, repeatedly displaying 120 the next corresponding price of the time interval, repeatedly receiving 124 indications of trade decisions, and repeatedly simulating 126 the trade. These steps continue cyclically until the test is completed, whereupon the method displays 134 a recommendation to the user regarding his/her performance.
  • a user may request that specific information be displayed in addition to the time interval and price.
  • the specified information typically news or other historical data, would be an aid for helping the user make trading decisions and is generally for novice investors. If such a request is made, method 110 displays 132 the user specified information as part of the test environment.

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  • Business, Economics & Management (AREA)
  • Accounting & Taxation (AREA)
  • Finance (AREA)
  • Engineering & Computer Science (AREA)
  • Development Economics (AREA)
  • Economics (AREA)
  • Marketing (AREA)
  • Strategic Management (AREA)
  • Technology Law (AREA)
  • Physics & Mathematics (AREA)
  • General Business, Economics & Management (AREA)
  • General Physics & Mathematics (AREA)
  • Theoretical Computer Science (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

L'invention concerne un système permettant de simuler la négociation d'actifs financiers de façon réaliste. Ce système se compose d'un ordinateur, d'un logiciel fonctionnant avec l'ordinateur afin d'afficher un premier intervalle de temps parmi une pluralité d'intervalles de temps ainsi qu'un prix correspondant, d'un logiciel fonctionnant avec l'ordinateur afin de recevoir une indication sur une décision de négociation, d'un logiciel fonctionnant avec l'ordinateur afin de simuler la négociation d'un actif financier, d'un logiciel fonctionnant avec l'ordinateur afin d'afficher à plusieurs reprises un intervalle de temps suivant et un prix suivant correspondant parmi la pluralité d'intervalles de temps et de prix correspondants, d'un logiciel fonctionnant avec l'ordinateur afin de recevoir à plusieurs reprises des indications sur les décisions de négociation, enfin d'un logiciel fonctionnant avec l'ordinateur afin de simuler à plusieurs reprises des négociations.
PCT/US2002/001076 2001-01-16 2002-01-16 Systeme permettant de simuler la negociation d'actifs financiers WO2002069079A2 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU2002237829A AU2002237829A1 (en) 2001-01-16 2002-01-16 System for simulating trading of financial assets

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US26192901P 2001-01-16 2001-01-16
US60/261,929 2001-01-16

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WO2002069079A2 true WO2002069079A2 (fr) 2002-09-06
WO2002069079A3 WO2002069079A3 (fr) 2002-10-31

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Cited By (1)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US7610240B2 (en) 2002-02-19 2009-10-27 Trading Technologies International, Inc. System and method for simulating an electronic trading environment

Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5544281A (en) * 1990-05-11 1996-08-06 Hitachi, Ltd. Method of supporting decision-making for predicting future time-series data using measured values of time-series data stored in a storage and knowledge stored in a knowledge base
US20010037278A1 (en) * 1999-12-30 2001-11-01 Messmer Richard Paul Methods and apparatus for simulating competitive bidding yield
US20010039530A1 (en) * 2000-01-18 2001-11-08 Annunziata Vincent P. Trading simulation
US20020026404A1 (en) * 2000-06-22 2002-02-28 Thompson George W. Apparatus and method for displaying trading trends

Family Cites Families (1)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
JPH0895938A (ja) * 1994-09-28 1996-04-12 Nippon Telegr & Teleph Corp <Ntt> 時系列データの学習方法及び時系列データの学習装置

Patent Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5544281A (en) * 1990-05-11 1996-08-06 Hitachi, Ltd. Method of supporting decision-making for predicting future time-series data using measured values of time-series data stored in a storage and knowledge stored in a knowledge base
US20010037278A1 (en) * 1999-12-30 2001-11-01 Messmer Richard Paul Methods and apparatus for simulating competitive bidding yield
US20010039530A1 (en) * 2000-01-18 2001-11-08 Annunziata Vincent P. Trading simulation
US20020026404A1 (en) * 2000-06-22 2002-02-28 Thompson George W. Apparatus and method for displaying trading trends

Cited By (5)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US7610240B2 (en) 2002-02-19 2009-10-27 Trading Technologies International, Inc. System and method for simulating an electronic trading environment
US7672895B2 (en) 2002-02-19 2010-03-02 Trading Technologies International, Inc. System and method for simulating an electronic trading environment
US8239315B2 (en) 2002-02-19 2012-08-07 Trading Technologies International, Inc. System and method for simulating an electronic trading environment
US8694414B2 (en) 2002-02-19 2014-04-08 Trading Technologies International, Inc System and method for simulating an electronic trading environment
US10304131B2 (en) 2002-02-19 2019-05-28 Trading Technologies International, Inc. System and method for simulating an electronic trading environment

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AU2002237829A1 (en) 2002-09-12

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