AU2021100342A4

AU2021100342A4 - An artificial intelligence based trading system

Info

Publication number: AU2021100342A4
Application number: AU2021100342A
Authority: AU
Inventors: Mukul Aggarwal; Priyesh P. Gandhi; Gayatri Kapil; Pravin R. Kshirsagar; D. Vimal Kumar; Neeraj Kumar; Mohd. Naved; S. Praveenkumar; Y Venkateswarlu; Neha Yadav
Original assignee: Gandhi Priyesh P Dr; Kapil Gayatri Dr; Kumar D Vimal Dr; Kumar Neeraj Dr; Naved Mohd Dr; Praveenkumar S Dr; Venkateswarlu Y Dr; Yadav Neha Ms
Current assignee: Gandhi Priyesh P Dr; Kapil Gayatri Dr; Kumar D Vimal Dr; Kumar Neeraj Dr; Naved Mohd Dr; Praveenkumar S Dr; Venkateswarlu Y Dr
Priority date: 2021-01-19
Filing date: 2021-01-19
Publication date: 2021-04-15
Anticipated expiration: 2029-01-19

Abstract

AN ARTIFICIAL INTELLIGENCE BASED TRADING SYSTEM The present invention relates to a cloud based algorithmic trading system for trading of tradable objects by users in an electronic exchange is provided. The present invention allow retail investors to configure strategies without any coding knowledge and monitor and track multiple tradable objects simultaneously. The proposed invention performs automated trading from different client devices using a adaptive configuration. The proposed system seamlessly integrate with application programming interface (API) provided by the broker for order management of the retail investors. The system generate entry and exit signal for tradable objects in the electronic exchange based on the strategies and places order for the tradable objects automatically using artificial intelligence. Following invention described in detail with the help of figure 1 of sheet 1 which shows schematic diagram of the proposed invention. 1/9 '0002 ~NO Obm M I u"1lv ..............

Description

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Technical field of the invention

The present disclosure relates generally to algorithmic trading systems, and more particularly to an artificial intelligence based and cloud based algorithmic trading system that allows trading of tradable objects by users, such as retail investors, brokers, and advisory firms, in an electronic exchange from different client devices and applications.

.0 Background of the invention

The digitalization in the financial industry boosts the data volume, velocity, variety, and veracity. Today's retrospective data analysis and machine learning systems, let alone human experts, cannot analyze this growing data flood fast enough to understand it in the actual context and .5 extract information for decision making. Also, more and more data are of real-time nature, which is inevitably lost if it is not constantly processed. Therefore, information mining and informed decision making is one of the major challenges of the raising new digital age in the financial industry and is particularly relevant for financial trading and asset management.

.0 Typically, users, for example, retail investors, brokers, advisory firms, portfolio managers perform trading of multiple tradable objects, such as, stocks, options, future contracts, securities, and commodities, Digital Currencies Exchanges etc., using electronic trading systems. The electronic trading systems work on strategies that are developed by the retail investors and advisory firms. A separate infrastructure is required for execution of the strategies. On execution of the strategies in an electronic exchange by the retail investors, brokers, and advisory firms using the electronic trading system, multiple tradable objects are tracked, monitored, and then orders are placed in the electronic exchange for purchase or sale of the tradable objects. However, for developing a strategy in the electronic trading system, the users need to possess knowledge of coding in different programming languages compatible with the electronic trading system. Moreover, for the retail investors who don't have the separate infrastructure and knowledge to develop the strategies, developing such strategies are very expensive.

The users, for example, brokers and retail investors, typically, interact with the electronic trading system using a client device. The electronic trading system in turn interacts with the electronic exchange to buy or sell the tradable objects. The electronic trading system fetches market data, for example, price data, tradable object data, etc., and transmits the fetched market data to the client device. The electronic trading system analyzes the fetched market data against a strategy configured by the retail investor and transmits a notification to the client devices of the retail investor. Based on the analysis of the market data of the tradable objects by the electronic trading system, the brokers and the retail investors place order for purchase or sale of the tradable .0 objects in the electronic exchange via the electronic trading system. For placing order for purchase or sale of the tradable objects, the trends in the market data of the tradable objects are to be tracked and monitored by the users. However, the manual tracking and monitoring of the tradable objects at the same time is difficult on the client device by the users. Also, since the tradable objects are manually tracked, there is a high probability of market emotions and .5 sentiments impacting the way the orders are placed in the electronic exchange via the electronic trading system.

The users, for example, the advisory firms play the role of advising the brokers and the retail investors via the client devices in placing orders in the electronic exchange by closely tracking '0 and monitoring the trends in the market data of the tradable objects. However, using the typical electronic trading systems, the advisory firms are not able to share advisory information to multiple retail investors and brokers simultaneously due to resource limitations of the advisory firms to have more employees to manage the retail investors and the brokers. Due to non-receipt of the advisory information, the retail investors and the brokers miss out on the current trends in the market data of the tradable objects and may incur losses. Furthermore, to transmit the advisory information to the brokers and the retail investors, the advisory firms require a separate infrastructure or setup to analyze the market data and intimate the brokers and the retail investors. The advisory information is sent as notifications in the form of a SMS, call, email notification, etc. In situations where the retail investors interact with the brokers to place orders in the electronic exchange for the tradable objects, the retail investors lack the capability to place the orders in the electronic exchange based on the advisory information received from the advisory firms directly using resources in respective DEMAT accounts. Once the advisory information is received from the advisory firms by the retail investors, the retails investors need to login to broker applications and place the orders, as the retail investors cannot place order directly. Hence, instant execution of the placed orders in the electronic exchange using the typical electronic trading system by the retail investors is not feasible.

Hence, there is a long felt need for an intelligent electronic trading system that allows different modes of communication between retail investors, brokers, and advisory firms using different client devices. Furthermore, there is a long felt need for an intelligent electronic trading system .0 where creation of strategies by the retail investors, the brokers, and the advisory firms is simple without any coding knowledge and inexpensive without separate infrastructure.

Summary of the invention

.5 The cloud based algorithm trading system disclosed herein addresses the need for different modes of algorithm trading and communication between different users in financial trading, for example, retail investors, brokers, and advisory firms, using different client devices. Furthermore, the algorithm trading system allows simple and inexpensive creation of strategies in minutes/on the go by the retail investors, the brokers, and the advisory firms.

The algorithm trading system, hereafter referred to as a cloud based algorithmic trading system (CATS), disclosed herein allows creation of the strategies in realtime using an integrated development environment (IDE) that does not require any coding, that is, a visual or a zero-code visual IDE, voice based IDE, web based IDE, web based form and text based IDE. The created strategies can be listed for selling in a strategy market store of the CATS and the users can earn additional income. The CATS is a cloud-based system and thus, does not require a separate development infrastructure and also can be accessed from anywhere using any device. The CATS allow placing of an order or trading in the electronic exchange using client devices, for example, cellular phone, laptop, desktop computer, smartwatch, voice based system such as Alexa and the like., with or without internet connectivity. The CATS ensure price emotions and sentiments do not impact the way the order is placed in the electronic exchange. Using the

CATS, the retail investors do not need to spend time on tracking the strategies as well as searching for news data. The strategies are executed periodically for signals/trading opportunity, and orders are placed and executed in a DEMAT account of the retail investors associated with a broker, if automated order is enabled in the CATS. In an embodiment, the orders are placed and executed directly in the DEMAT account of the retail investors associated with a broker by notification of an entry or an exit signal from the CATS application without logging into a broker client device application. The CATS allow the users to decide to place an order and execute the order based on concrete data, for example, fundamental data, news, social buzz and the like, apart from the market data for the tradable objects. The CATS permit the retail investors to .0 execute orders without logging into the DEMAT account of the retail investors associated with the broker. The brokers are integrated seamlessly to the CATS to help the retail investors in executing orders from the DEMAT account of the retail investors associated with the broker.

Furthermore, the cloud based algorithmic trading system (CATS) allows advisory firms to .5 reduce costs and additional resources to transmit advisory information to the retail investors. Using the CATS, the advisory information is transmitted to multiple retail investors simultaneously via different modes of communication, for example, voice call, email, SMS, etc. The cloud-based CATS avoid the need for separate software setup in the advisory firms and the advisory firms manage different retail investors who subscribe into different groups. The .0 advisory firms are listed in the strategy market store of the CATS and the retail investors can review past performance and subscribe to the advisory firms directly.

Brief description of the drawings

FIG. 1 exemplarily illustrates a high-level architecture of a cloud based algorithmic trading system for cloud-based trading of tradable objects, initiated by users, in an electronic exchange.

FIG. 2 exemplarily illustrates a flowchart comprising steps performed by the cloud based algorithmic trading system for various modes of artificial intelligence or machine learning based algorithmic trading of the tradable objects, available to retail investors, in the electronic exchange.

FIG. 3 exemplarily illustrates a flowchart comprising steps performed by the cloud based algorithmic trading system in creation of an account using a third-party broker authentication or authentication using an electronic mail for a retail investor in the cloud based algorithmic trading system for trading of the tradable objects.

FIG. 4 exemplarily illustrates a schematic diagram of a zero-code visual integrated development environment for creation of a strategy to monitor stocks/currencies/tradable objects and for .0 generating a signal to place and execute an order in the electronic exchange by the users of the cloud based algorithmic trading system.

FIG. 5 exemplarily illustrates a flowchart comprising steps for designing a strategy using the zero-code visual integrated development environment exemplarily illustrated in FIG. 4 by the .5 cloud based algorithmic trading system.

FIG. 6 exemplarily illustrates a flowchart comprising steps for back testing a created strategy using the zero-code visual integrated development environment exemplarily illustrated in FIG. 4 by the cloud based algorithmic trading system. '0

FIG. 7 exemplarily illustrates a flowchart comprising steps for reviewing and deploying a created strategy to live by the cloud based algorithmic trading system for generating a signal to place and execute an order in the electronic exchange.

FIG. 8 exemplarily illustrates a flowchart comprising steps for suspending execution of a strategy in real time for trading of the tradable objects in the electronic exchange by the cloud based algorithmic trading system.

FIG. 9 exemplarily illustrates a flowchart comprising steps for deleting a strategy by the cloud based algorithmic trading system from a database of the CATS.

FIG. 10 exemplarily illustrates a flowchart comprising steps for modifying an existing strategy for trading of the tradable objects in the electronic exchange by the cloud based algorithmic trading system.

FIG. 11 exemplarily illustrates a flowchart comprising steps for execution of user active strategies by a strategy manager of the cloud based algorithmic trading system for generating and notifying signals to retail investors on client devices, for trading of the tradable objects in the electronic exchange in real time.

.0 FIG. 12 exemplarily illustrates a flowchart comprising steps for listing strategies and subscribing strategies in a strategy market store by the retail investors and advisory firms using the cloud based algorithmic trading system for trading the tradable objects in the electronic exchange.

FIG. 13 exemplarily illustrates a flowchart comprising steps for sharing trading tips for trading .5 of the tradable objects by the advisory firms using the cloud based algorithmic trading system.

FIG. 14 exemplarily illustrates a flowchart comprising steps of integration of an application programming interface provided by brokers with the cloud based algorithmic trading system for automated trading and manual trading of the tradable objects by the retail investors through the .0 brokers, and

FIG. 15 exemplary illustrates a flowchart comprising steps for clone strategy.

Detailed description of the invention

FIG. 1 exemplarily illustrates a high-level architecture (1000) of a cloud based algorithmic trading system (CATS) for performing cloud-based trading of tradable objects, initiated by users (1002), in an electronic exchange. The CATS is a cloud based algorithmic trading services platform powered by artificial intelligence for trading of the tradable objects in the electronic exchange on the basis for algorithmic trading. As used herein, "trading" refers to an act of placing an order and executing the placed order in the electronic exchange for purchase or sale of the tradable objects. The tradable objects are, for example, stocks, options, future contracts, securities, commodities, mutual funds and crypto currencies, etc. As used herein, "electronic exchange" is a securities exchange where users (1002), that is, the retail investors, brokers, and the advisory firms perform trading over a computer system. The users (1002) are, for example, retail investors, brokers, and advisory firms. Also, as used herein, "algorithmic trading" is a process of performing trading of the tradable objects in the electronic exchange using computers programmed to follow a defined set of instructions, an algorithm, to generate profits at a speed and frequency that is impossible for users. The algorithmic trading is also referred to as algo trading, black box trading, and automated trading. The CATS perform algorithmic trading by .0 performing technical analysis of strategies created by retail investors and advisory firms and places orders for purchase or sale of tradable objects in the electronic exchange on detection of entry or exit signal, using the algorithm configured by the users (1002). As exemplarily illustrated in FIG.1, the retail investors communicate with the CATS via a CATS application that can be a web based application (2002), a mobile application (2004), a smart watch application .5 (2006), chatbot application (2008), a voice based application and a text based application, etc., rendered on different client devices, such as, desktop computers, web browsers, Android based mobile devices, iOS mobile devices, Windows based mobile devices, wearable devices, chatbot supported device channels, etc.

.0 The cloud based algorithmic trading system (CATS) comprises a broker exchange manager, a strategy manager, an application manager, an order manager, a signal manager, a strategy store, and a database to store data related to the users (1002), the placed orders, the strategies, etc. The retail investors via the client devices select an order action for trading the tradable objects in the electronic exchange. The retail investors select the order action based on a signal generated by the signal manager on execution of a strategy by the strategy manager of the CATS. The order manager of the CATS verifies the order details of the order placed by the retail investors against a risk level configured by the retail investors and checks for validity of the placed order. The risk level is determined prior to generation of the signal by the signal manager and configured in the CATS by the retail investors. Based on the validity of the order, the CATS execute the order in a DEMAT account of the retail investors via a broker application programming interface (API). The brokers communicate with the CATS or the brokers connected via CATS connect API's and vice versa as exemplarily illustrated. The strategy manager of the CATS in communication with the signal manager manages the strategy market store of the CATS as disclosed in the detailed description of FIG. 11. The strategy market store comprises the strategies created by the different retail investors and advisory firms. The advisory firms and the retail investors can buy and sell the strategies created by them in the strategy market store and earn an additional income on the created strategies. The strategies are rules defining conditions that must be met for a purchase or sale of the tradable objects in the electronic exchange. The retail investors and the advisory firms employ different strategies to generate entry signal and exit signal. The strategies comprise specification to generate an entry signal or an exit signal, timeframes, order types. The strategies .0 are generally created based on the historical market data to monitor and generate signals based on the historical market data. The CATS allow trading by the retail investors from choice of client devices or applications. The CATS can be used by stock market broking firms, trading advisory firms, retail investors, mutual fund managers, PMO fund managers/portfolio managers and digital currency or crypto currency exchanges, for example, bitcoins. .5

Advantages of the cloud based algorithmic trading system (CATS) are as follows: The CATS is capable of stock trading and crypto currency trading using artificial intelligence and machine learning. The CATS is capable of voice-based stock trading and voice based crypto currency trading. The CATS is capable of chatbots and text based (1004) stock trading and chatbots and text based crypto currency trading. The CATS perform the role of trade advisory using artificial intelligence as disclosed in the detailed description of FIG. 13. The CATS provide a zero-code visual IDE to the retail investors for creating strategies for the automated trading and manual trading of tradable objects using the CATS as disclosed in the detailed description of FIG. 4. The strategy market store of the CATS allows clone trading as disclosed in the detailed description of FIG. 12.

FIG. 2 exemplarily illustrates a flowchart (2000) comprising steps performed by the cloud based algorithmic trading system (CATS) for various modes of artificial intelligence or machine learning based algorithmic trading of the tradable objects, available to retail investors, in the electronic exchange. As exemplarily illustrated in FIG. 1, the retail investors communicate with the CATS using a CATS application, for example, a CATS web-based application (2002), a

CATS mobile application (2004), a CATS smart watch application (2006), CATS chatbots (2008), etc. The retail investors communicate with the CATS using CATS chatbots apart from the CATS web-based application, the CATS mobile application, and the CATS smart watch application. Using the CATS chatbots, the CATS performs chatbot based algorithmic trading. In the chatbot based algorithmic trading, the CATS receive text or commands from the retail investors in different compatible applications, for example, Messenger of Facebook Inc., Slack of Slack technologies, Telegram of Telegram Messenger LLP, etc., on the client devices to fetch market data. Using the CATS mobile applications, the CATS performs SMS based trading (1006) and voice-based trading (1008). In SMS based trading (1006), the CATS receive text .0 commands from the retail investors via a SMS gateway (1010) of the CATS. In the voice-based trading (1008), the CATS receive voice command in the form of a text from the retail investors via a speech to text converter (1012) of the CATS. For the different modes of trading, the CATS determine if trading mode (1014) is enabled in the CATS application. If the trading mode is enabled, natural language processing (NLP) (1016) schema of the CATS processes the .5 commands received from the different CATS applications on the client devices of the retail investors. The CATS examine the received commands for validity (1018). If the commands are valid (1018), the CATS process the commands and notifies (1020) the retail investors on the client devices in different modes, for example, via chatbot (1022), SMS (1024), or voice (1026). The commands include, fetching the market data from the database (1028) of the CATS, fetching .0 the market data from the brokers, communicating with the brokers for execution of orders, fetching data related to strategies, data related users, etc. If the CATS determine that the trading mode is not enabled, the CATS notifies the retail investors (1030) to register with the CATS and enable trading mode in the CATS.

FIG. 3 exemplarily illustrates a flowchart (3000) comprising steps performed by the cloud based algorithmic trading system (CATS) in creation of an account using a third-party broker authentication (3004) or authentication using an electronic mail (e-mail) (3006) or authentication based on mobile number or OAuth modes for a retail investor in the CATS for trading of the tradable objects. The CATS execute a sign-up method (3002) for registering the retail investor in the CATS. The CATS receive login credentials of the retail investor from a broker authorization method or an individual email received by the retail investor from the application manager of the

CATS. In an embodiment of receiving the login credentials from the broker authorization method, the CATS application manager authenticates with a third-party broker who is a representative of the retail investor in the CATS for trading the tradable objects. The CATS on receiving the login credentials verifies (3008) if the retail investor is already registered with the CATS. If the retail investor is a new user of the CATS, the CATS registers the retail investor with default user settings (3014) and stores the details of the users, obtained from the broker related to the user, in the database (3010) of the CATS. If the registration process is successful (3012) and an account is created for the retail investor, the CATS transmits the login credentials and a welcome email/SMS to the retail investors. If the registration process is not successful, the .0 CATS transmits a regret message to the retail investors via the different CATS applications to the client devices.

FIG. 4 exemplarily illustrates a schematic diagram of a zero-code visual integrated development environment (IDE) (4000) for creation of a strategy for monitoring the algorithm and generates a .5 signal to place and executean order in the electronic exchange by the users of the cloud based algorithmic trading system (CATS). As exemplarily illustrated, the zero-code visual IDE comprises a strategy visual information area (4002), an indicator and setting area (4004), a back test performance summary area (4006), and a performance review and optimization area to launch the strategy (4008). The strategy visual information area comprises dynamic visual data charts with indicators configured by the users (4010) of the CATS. The technical, fundamental, and sentimental indicators and buttons (4012) are also part of the zero-code visual IDE. The zero-code visual IDE is a cloud-based web IDE that allows the users, for example, the retail investors, the brokers, and the advisory firms, etc., to configure and modify strategies in the CATS without any coding knowledge. The users drag and drop (4014) or use one click buttons to position the technical, fundamental, and sentimental indicators into the strategy visual information area in the process of trading the tradable objects using the CATS. Using the zero code visual IDE, the users design strategies, back test the designed strategies, and review the back tested strategies and deploy the reviewed strategies in the CATS for generating the signal based on various parameters configured by the user to trade tradable objects in the electronic exchange as exemplarily illustrated in FIGS. 5-7. For execution of the strategies, the CATS monitor and tracks the market data of the tradable objects and generates a signal to place an order in the electronic exchange.

FIG. 5 exemplarily illustrates a flowchart comprising steps for designing a strategy can be created using the zero-code visual IDE (5000) and drag and drop buttons/ voice based commands/ text input/ web page based form option selection exemplarily illustrated in FIG. 4 by the cloud based algorithmic trading system (CATS). The user, for example, the retail investor creates a strategy using the user interface buttons in the strategy visual information area of the zero-code visual IDE. The strategy manager of the CATS validates the strategy details and .0 verifies if the subscription or registration of the retail investor with the CATS is active and within quota limit of the retail investor according to a subscription plan of the retail investor in the CATS. The CATS processes and stores the newly created strategy in the database of the CATS with a unique strategy ID. The CATS respond to the successful creation of the strategy with a status DRAFT to the retail investor. .5

FIG. 6 exemplarily illustrates a flowchart (6000) comprising steps for backtesting the created strategy using the zero-code visual IDE exemplarily illustrated in FIG. 4 by the cloud based algorithmic trading system (CATS). The user, for example, the retail investor initiates strategy backtesting using the strategy visual information area of the zero-code visual IDE of the CATS. The strategy manager of the CATS validates the strategy ID and other details of the created strategy. On validation, the CATS fetch historic market data from the electronic exchange. The CATS, then, runs the created strategy against the fetched historic market data. The strength of the created strategy in obtaining profits on trading of the tradable objects in the electronic exchange is determined based on performance of the CATS on the fetched historic market data using the created strategy. Further, user can analyze the performance of the algorithm and fine tune the strategy by reconfiguring and re-back testing The CATS reports transactions of purchase or sale of the tradable objects to the retail investor in the back-test performance summary area of the zero-code visual IDE. Based on the created strategy, the CATS simulate the actions of placing an order for sale or purchase of tradable objects in the electronic exchange on the historic market data a part of back testing of the created strategy.

FIG. 7 exemplarily illustrates a flowchart (7000) comprising steps for reviewing and deploying the created strategy by the cloud based algorithmic trading system (CATS) for generating a signal to place and execute an order in the electronic exchange. The user, for example, the retail investor reviews the back-test performance summary rendered in the back test performance summary area of the zero code visual IDE and updates the created strategy. The strategy manager of the CATS validates the reviewed strategy and the retail investor and updates status of the reviewed strategy to LIVE. The reviewed strategy is ready for deployment in the CATS for applying on the current real time market data. The CATS store the reviewed strategy in the database of the CATS. The CATS, further, determines if the electronic exchange is open for .0 trading currently. If the electronic exchange is open, the CATS adds the reviewed strategy to a live strategy manager of the CATS and the reviewed strategy will be used in real time for placing an order of purchase or sale of the tradable objects in the electronic exchange. The retail investor deploys the reviewed strategy based on the back-test performance review and the CATS generates signals based on real time technical analysis of the market data using the deployed .5 strategy. The CATS monitor the market data in real time and generates signal alerts based on the deployed strategy on the client devices. Further, the CATS respond to the retail investor about the deployment of the reviewed strategy in real time.

FIG. 8 exemplarily illustrates a flowchart (8000) comprising steps for suspending execution of o the reviewed strategy in real time for trading of the tradable objects in the electronic exchange by the cloud based algorithmic trading system (CATS). The user, for example, the retail investor stops the deployment of the strategy in real time. The strategy manager of the CATS validates the strategy and the user details. The CATS remove the strategy from the live strategy manager and updates the strategy status to suspend in the database. Once the CATS suspend the strategy, the CATS stop monitoring and tracking the market data in real time and does not generate signal alerts based on the strategy. The CATS then respond to the retail investor with the status of the strategy. The strategy is stored in the database but suspended from applying.

FIG. 9 exemplarily illustrates a flowchart (9000) comprising steps for deleting the strategy by the cloud based algorithmic trading system (CATS) from the database of the CATS. The user, for example, the retail investor deletes the strategy from the client applications of the CATS. The strategy manager of the CATS validates the strategy and the user details. The CATS update the status of the strategy in the database to archived and responds to the retail investor with the updated status. The strategy is deployed, reviewed, modified, updated, suspended, and deleted based on trends in the market data or the changes in the market data.

FIG. 10 exemplarily illustrates a flowchart (10000) comprising steps for modifying an existing strategy for trading of the tradable objects in the electronic exchange by the cloud based algorithmic trading system (CATS). The user, for example, the retail investor modifies the existing strategy in the strategy visual information area of the zero-code visual IDE using the .0 indicators and settings area of the zero-code visual IDE. The strategy manager of the CATS validates the modified strategy and the user details. On validation, the CATS update the strategy configuration in the database. The CATS, further, determines if the electronic exchange is open for trading currently and the modified strategy is ready for deployment. If the electronic exchange is open and the modified strategy is deployed, the CATS adds the modified strategy to .5 the live strategy manager of the CATS and the modified strategy will be used to generate signals based on the modified strategy and place orders in real time for purchase or sale of the tradable objects in the electronic exchange. Further, the CATS respond to the retail investor about the deployment of the modified strategy in real time. The CATS monitor and tracks market data corresponding to different tradable objects and executes multiple strategies at the same time for purchase and sale of different tradable objects. Based on execution of the deployed strategy by the CATS, an entry signal or an exit signal for a tradable object is generated. Once the entry signal or the exit signal is generated, the CATS automatically places an order for purchase or sale of the tradable object, respectively in the electronic exchange.

FIG. 11 exemplarily illustrates a flowchart (11000) comprising steps for execution of deployed live strategies by the strategy manager of the cloud based algorithmic trading system (CATS) for generating and notifying signals to the retail investors on client devices, for trading of the tradable objects in the electronic exchange in real time. The strategy manager initializes the live strategy manager every day. The strategy manager determines if the electronic exchange is open for trading for that day. If the electronic exchange is open for trading, the strategy manager fetches users, for example, the retail investors whose subscription with the CATS is active.

Consider an example where the strategy manager determines that 1,.., N retail investors have subscription with the CATS active. The strategy manager fetches the strategies corresponding to each of the 1,.., N retail investors that are deployable from the database of the CATS. The strategy manager adds each of the deployable strategies to the live strategy manager. The live strategy manager threads corresponding to the 1,..,N retail investors are initialized and the live strategy manager executes the deployed strategies until the electronic exchange closes for the day. The strategy execution by the live strategy manager is triggered based on data feed interval timer of algorithm. Based on the data feed interval timer, the market data, for example, a stock tick data is fetched from the electronic exchange by the broker exchange and data manager of the .0 CATS. The live strategy manager analyzes the strategies that belong to the stock tick data for each of the 1,..., N retail investors to find an opportunity to generate a signal to place order for sale or purchase of the tradable objects. The signal manager in communication with the strategy manager determines if a signal, that is, an entry signal or the exit signal is generated on execution of the strategies and the tradable objects are not in open positions for the algorithm in a DEMAT .5 account of the retail investors. The signal manager intimates the signal notification to the retail investors in various modes on the client devices of the retail investors as configured by the retail investors. The order manager of the CATS processes an order signal event generated on execution of the strategies against a risk level configured by the retail investors in settings of the CATS. The order signal event is an entry signal to place an order for purchase of a tradable .0 object in the electronic exchange or an exit signal to place an order for sale of a tradable object in the electronic exchange.

The order manager of the cloud based algorithmic trading system (CATS) verifies if automated order placement is enabled by the retail investor. If the automated order placement is enabled, the order manager of the CATS executes the order in the DEMAT account of the retail investor with the broker via an application programming interface (API) provided by the broker using the broker exchange and data manager. The application manager of the CATS notifies the retail investors about the generated entry or exit signal on execution of the strategies. If the client device of the retail investor is email enabled, the application manager of the CATS transmits an email notification to the client device. If the client device of the retail investor is mobile notification enabled, the application manager of the CATS transmits a mobile notification, for example, SMS to the client device. If the client device of the retail investor is chatbot notification enabled, the application manager of the CATS transmits a chatbot notification in channels supported by the chatbots, for example, a text notification to different compatible applications on the client device. If the client device of the retail investor has the CATS application, the CATS transmits a notification in the CATS application, that is, the CATS web application, the CATS mobile application, the CATS smart watch application, etc. If the CATS determine that the retail investor is represented by a third-party broker in the CATS, the broker exchange and data manger of the CATS co-ordinates with an application programming interface (API) provided by the third-party broker. The API provided by the third-party broker provides single click buttons .0 in a broker application on the client device of the retail investors to execute an order manually in the DEMAT account of the retail investor with the third-party broker directly.

FIG. 12 exemplarily illustrates a flowchart (12000) comprising steps for listing strategies and subscribing strategies in the strategy market store by the retail investors and advisory firms using .5 the cloud based algorithmic trading system (CATS) for trading the tradable objects in the electronic exchange. The strategy market store receives strategies created by the retail investors. The retail investors register the strategies for listing in the strategy market store. The advisory firms register in the strategy market store. An analytics processor of the CATS interacts with the strategy market store and lists strategies and the advisory firms. A user subscription manager of the CATS interacts with the strategy market store and the retail investors that opted for subscription of strategy from the strategy market store. The strategy market store allows clone trading in the electronic exchange. The Analytics Processor of the CATS periodically evaluates the performance of the listed strategies, ranking of the listed strategies, and other statistics, etc., in the strategy market store. Based on the ranking of the listed strategies in the strategy market store, other retail investors subscribe for the well performing strategies or strategies recommended by the advisory firms. Using strategies created by other retail investors, the CATS supports clone trading by a retail investor. In clone trading, a strategy subscribed by a retail investor is executed and a signal is generated by the CATS, while configuration of the strategy is hidden to the retail investor. The signal manager in communication with user subscription manager of the CATS notifies a retail investor about the order entry or exit signal in the electronic exchange based on a strategy subscribed by the retail investor from the strategy market store. If the client device of the retail investor is email enabled, the user subscription manager transmits an email notification to the client device. If the client device of the retail investor is mobile notification enabled, the user subscription manager transmits a mobile notification, for example, SMS to the client device. If the client device of the retail investor is chatbot notification enabled, the user subscription manager transmits a chatbot notification in the form of a text notification to different compatible applications on the client device. If the client device of the retail investor has a CATS application, the user subscription manager transmits a notification in the CATS application. Further, if the advisory firm is opted for voice notifications, then the signal is transmitted as voice call to user via mobile or application. If the application manager of .0 the CATS in communication with the user subscription manager determines that the retail investor is represented by a third party broker in the CATS, the user subscription manager co ordinates with API of the third party broker to allow the retail investors to use single click buttons in the API provided by the third party broker to execute the order in the DEMAT account of the retail investor with the third party broker directly as exemplarily illustrated in FIG. 14. .5

FIG. 13 exemplarily illustrates a flowchart (13000) comprising steps for sharing trading tips for trading of the tradable objects by the advisory firms using the cloud based algorithmic trading system (CATS). The advisory firms communicate with the cloud-based CATS and transmits trading tips to the retail investors, updates the already transmitted trading tips, and cancels the already transmitted trading tips. The retail investors follow advisory firms and receive alerts from the advisory firms via the CATS. The CATS provide the retail investors access to credibility and past track record of the advisory firms. The advisory firms post financial advices, trends, articles, etc., to the application manager of the CATS and the application manager of the CATS transmits the posted financial advices, trends, articles, etc., to the retail investors following the advisory firms. The application manager of the CATS determines if the client device of the retail investor is voice tip enabled. If the voice tip is enabled, the CATS processes text to speech and transmits the trading tip as a voice call to the following retail investors. The CATS notify the following retail investors about the entry or exit signal for a tradable object based on the trading tips or risk computed by the retail investors. If the client device of the retail investor is email enabled, the application manager of the CATS transmits an email notification to the client device. If the client device of the retail investor is mobile notification enabled, the application manager of the CATS transmits a mobile notification, for example, SMS to the client device. If the client device of the retail investor is chatbot notification enabled, the application manager of the CATS transmits a chatbot notification in the form of a text notification to different compatible applications on the client device. If the client device of the retail investor has the CATS application, the application manager of the CATS transmits a notification in the CATS web application, the CATS mobile application, the CATS smart watch application, etc. If the CATS determines that the retail investor is represented by a third party broker in the CATS, the user subscription manager of the CATS co-ordinates with API of the third party broker to allow the retail investors to use single click buttons in the API provided by the third party broker .0 to execute the order in the DEMAT account of the retail investor with the third party broker directly as exemplarily illustrated in FIG. 14. Further, the present invention is not just a sharing tips, it's a new eco system for advisory firms to replace the traditional advisory system.

FIG. 14 exemplarily illustrates a flowchart (14000) comprising steps of integration of the .5 application programming interface (API) provided by brokers or the CATS connect API's implemented by brokers with the cloud based algorithmic trading system (CATS) for automated trading and manual trading of the tradable objects by the retail investors through the brokers. The retail investors communicate with the brokers via representational state transfer (REST) APIs provided by the brokers for order management of the retail investors. The CATS seamlessly integrate with the REST APIs provided by the brokers. In an embodiment, the API used for communication of the retail investors with the brokers is an API supported by CATS that is implemented by the brokers. The broker related feed is communicated to the retail investors via the CATS. The retail investors and the brokers, that is, the third-party brokers communicate with the broker exchange and data manager of the CATS as exemplarily illustrated. The broker exchange and data manager of the CATS communicates with the REST API provided by the brokers for authentication of the retail investors and for determining balances in the DEMAT account of the retail investors. The broker exchange and data manager of the CATS transmits orders, positions, and holdings to the REST APIs of the brokers. The signal manager generates an entry or exit signal for the tradable objects and the CATS performs automated trading of the tradable objects. For performing automated trading, the order manager of CATS verifies if automated order placement is enabled by the retail investor. If the automated order placement is enabled, the order manager of the CATS executes the order in the DEMAT account of the retail investor via the REST API provided by the broker using the broker exchange and data manager. In an embodiment, the retail investors receive entry or exit signal for the tradable objects from the signal manager and the retail investors manually select an option in the CATS application on the client device to place an order. The script for the execution of the order placed by the retail investor is manually executed on the client device viathe REST API provided by the brokers, by the single click buttons activated by the retail investors. Using the REST API, the retail investors can execute orders without logging into the broker application on the client device.

.0 FIG. 15 exemplary illustrates a flowchart comprising steps for clone strategy. The clone strategy is the way of creating a new strategy from the existing strategy of own user or strategy shared by other users. Upon clone request, strategy details & user details are validated. If system find the strategy, it will create a new strategy with same configuration of requested existing strategy, and stores in CATS database and thereafter it will display status message to user. If the strategy is not .5 found, error message is shown to the user.

In an embodiment, the CATS has the Al recommendation system based on Analytical Processor. The Analytical Processor timely monitors the interest of the user and send the recommendations

/ data notifications. Further, the CATS will have the screening functionality with multiple filters .0 like technical, fundamental, ratings, trends, etc. User can create and save the screens in CATS for future use. Furthermore, the CATS will have a social buzz and news processor and send the alters to user. Moreover, the CATS will support the algorithm strategy creations for Stock Markets, Crypto Currency Exchanges, Mutual Funds, Advisory Firms, Fund Managers. Also CATS will have Virtual and Offline One Trade Center (OTC) points where users can interact and share the financial/trade related information. OTC's will have experts and agents available for discussions. Users can select/switch the broking partners from OTC points directly.

The foregoing examples have been provided merely for explanation and are in no way to be construed as limiting of the cloud based algorithmic trading system (CATS) disclosed herein. While the CATS have been described with reference to various embodiments, it is understood that the words, which have been used herein, are words of description and illustration, rather than words of limitation. Furthermore, although the CATS has been described herein with reference to particular means, materials, and embodiments, the CATS is not intended to be limited to the particulars disclosed herein; rather, the CATS extend to all functionally equivalent structures, methods and uses, such as are within the scope of the appended claims. While multiple embodiments are disclosed, it will be understood by those skilled in the art, having the benefit of the teachings of this specification, that the CATS disclosed herein is capable of modifications and other embodiments may be affected and changes may be made thereto, without departing from the scope and spirit of the method and the system disclosed herein.

Claims

THE CLAIMS DEFINING THE INVENTION ARE AS FOLLOWS:

1. A cloud-based trading system, wherein the system comprising: a memory storing a set of instructions; a processor coupled to the memory, wherein the processor is configured to execute the set of instructions stored on the memory to: receive order request, from a user, for buying or selling of tradable objects, wherein the order request is based upon execution of a strategy; verify the order request in relative to predefined risk parameters; executing the order request based on the verification

2. The system as claimed in claim 1, wherein the tradable objects comprise stocks, options, future contracts, securities, commodities, digital currencies, mutual funds, crypto currency exchanges, advisory firms, fund managers.

3. The system as claimed in claim 1, wherein the strategy comprises one or more rules and conditions to be met before placing (generating signal and placing) the order request, and wherein the strategy is generated based on historical data (historical data and current day market sentiment / other fundamental data) associated with market of the tradable objects.

4. The system as claimed in claim 1, wherein the processor is further configured to: continuously monitor market information associated with the market; and modify the strategy based on (modify/track the signal generated by strategy based on the monitoring) the monitoring.

5. The system as claimed in claim 1, wherein the processor is further configured to: monitor performance of one or more strategies; and provide recommendation of at least one strategy amongst the one or more strategies based on the performance.