TW514806B - Computer automatic transaction system for future and derivative merchandise - Google Patents

Abstract

The invention is a computer automatic transaction system for future and derivative merchandise with Chinese character symbol to display. After transaction of any future or derivative merchandise since any transaction date, for a while the occurring price definitely generates a dynamic balance area, which provides one balance point and two symmetrical points (the balance point is the point with relatively most transaction frequency); once the dynamic balance area is formed, the user's transaction system takes the up and down points of the two symmetrical points as the buying or selling price, further go through network to connect with the computer of stock exchange for issuing transaction command. The loss breaking point setup (risk control) for buying and selling first refers to previous transaction date, last balance point or symmetrical point. However, once when the first dynamic balance area is destructed at that day, the new dynamic balance area will be formed affirmatively, the new dynamic balance area will generate new symmetrical point and its balance point for sure, the new symmetrical point and balance point will become new loss breaking or new buying or selling basis. During market transaction period, user can automatically and constantly move loss breaking point with computer to find the minimal loss and optimal investment return or can set up the profit target individually on request.

Description

514806 _Case No. 89123024_ Revised Year of the Month _ V. Description of the Invention (1) The present invention relates to a computerized automatic trading system for futures and derivatives, especially a kind of dynamic equilibrium interval that can be obtained by the previous trading day or the previous one. It is a fairly efficient method for trading futures and derivative commodities by setting buy and sell entry points and controlling risk stop points. The most important subject of investment and financial management is how to deal with uncertain risks. For investors investing in futures and derivatives, it is very important to have a logical forecast of future price changes and to manage risks well. In the 21st century, it is an inevitable trend for companies and governments to use the operation, investment or hedging of financial and futures-derived commodities; the operation of financial commodity tools has become an important part of productivity.

Any sample data has the same uncertainty as the price trading frequency, so the data patterns obtained at different points in time are not the same. However, over time, accumulation of samples and increase in sample contributions, statistically, normal distribution is still the model with the largest proportion. Instead, apply statistical methods, analyze the obtained data, and seek a logical model. And through statistical reasoning, the obtained data and models will not become useless because of variability and uncertainty; so statistics can make logical estimates. Although the results of the calculations are not guaranteed to occur, if If the probability of occurrence is greater than the probability of non-occurrence, the estimation or estimation can be used as the expected target. In other words, the occurrence of any event is not 100% certain. It is important that we can get more predictable results through statistical inference. The theoretical basis of the present invention is mainly a normal distribution model of statistics. Use computer programs to calculate symmetry points, equilibrium points, and critical points to find areas of dynamic equilibrium change patterns and their price allocations, and monitor the occurrence of equilibrium points and critical points for trend observations. get

Page 5 514806 _Case No. 89123024_ Year Month Revision _ V. Description of the Invention (2) The best transaction forecast; convert the transaction forecast into a buy and sell order and transmit it to the market via the Internet.

The computerized automatic trading system for futures and derivatives of the present invention. Refers to a type of dynamic balance interval displayed by the [positive] graphic on the previous trading day or the previous period to set buy and sell entry points and control the stop loss point for risk. During the continuous trading time of the market, by monitoring the price transaction frequency allocation, the movement of the displayed dynamic equilibrium area, and the process of forming a new dynamic equilibrium area, it is used as the basis for predicting the next wave band and the likely interval of transaction prices. When the market starts trading, the user's computer, using this system program, and the information source provider, or the trading market to connect; obtain information on the continuous price of different commodities in each market; and display various prices in the form of orthographic graphics. After a certain period of transaction price, the user's computer will generate a dynamic balance zone that is not displayed in the orthographic pattern. At this time, the system uses the balance area, the symmetry point, the equilibrium point and the critical point to set the price of entry trading and stop loss; at the same time, it can use the Internet connection, issue trading orders to the exchange, and execute buying and selling. The user can monitor the market transaction price continuously according to his needs or automatically set by the computer, so as to achieve the profit or hedging goal, which is the main purpose of the present invention.

In view of the advent of the era of economic and financial globalization, there is currently no learning tool for financial practice in China. This computerized automatic trading system can provide users with computers to learn financial operations, and this system can release automatic trading programs to allow users to learn and operate. And the information of the operation instruction is transmitted to a main server, which can complete the evaluation of the user's learning effectiveness, as a review and improvement of the operation skills, which is another object of the invention. This computer automatic trading system can be applied to any commodity futures, financial period

Page 6 514806 _Case No. 89230024_year month__ V. Description of the invention (3) Goods and derivative products, such as foreign exchange, public debt, interest rates, stocks and derivative indexes, and even commodity cash in the global market. We will use this system, apply it to stock index futures, and explain the actual process and results step by step. But first of all, the commonly used means in the trading market 〇 market (market price) --- accept the market is buying or selling the price, if the investor is a buyer then accept the market seller price; vice versa. limit (hanging price) ------ Investors customize the buying or selling price. stop (to the limit) ------ the investor uses a certain price to appear and act as

The point in time when the market price is used to buy or sell. Generally, the manual asking market allows advance orders, while the computer asking market does not. moc (closing price) ------ investors use the market price to buy or sell at market closing time moo (opening price) ------ investors use the market price to buy or sell price index at market opening time futures:

The so-called stock index futures, as the name implies, will compile the stock index as a commodity and standardize contract specifications for futures trading; after the establishment of the domestic futures exchange, the country's first futures commodity will be launched. Futures contract. For Taiwan weighted index futures contracts, each price increase or decrease is NT $ 200, and the value of each item is a weighted index X 2 0 0. For investors, since the weighted index is a transaction with a high leverage ratio, it also bears great risks while earning rich profits. After long-term efforts, the inventor has developed an automatic trading system

Page 7 514806 _Case No. 89230024_ Year Month Day__ V. Description of the invention (4) system, strictly control the risks arising from the above futures, and use computer connection methods to allow investors to better grasp the time limit . Please refer to Fig. 1. The trading system of the present invention uses the [original] graphic mode, the displayed index trading frequency, and the standard allocation chart of corresponding statistics. Index trading frequency distribution can be roughly classified as normal distribution. The vertical axis in the figure is the index futures price, and the horizontal axis positive character number is the number of times the index futures are traded; the transaction frequency corresponding to this figure is roughly a normal distribution. This figure shows that 1 2, 1 2 ′ are vertical symmetrical points, and 10 is an equilibrium point.

See Figure 2. Figure 2 is formed by two sets of index price frequency distributions between 6423 and 6230 points. The two sets of allocations can be viewed in triangles. Among them, the triangle above is the dynamic equilibrium zone (hereinafter referred to as T 1) formed by the transaction price in the first period, and its equilibrium point is 10. The lower triangle is a dynamic equilibrium zone (hereinafter referred to as T 2) in another period, and its equilibrium point is 10 ′. The middle point of the two triangles is called the critical point (m a r g i n a 1 ρ 〇 i n t); the critical point was originally a symmetrical point (12,) below T 1. The so-called symmetry point is the highest, lowest, or lowest transaction price within the transaction time interval.

When the index price breaks up or breaks down any symmetrical point of the dynamic equilibrium interval T 1, it means the end of the equilibrium of the dynamic equilibrium zone of T 1; therefore, as shown in Figure 2, the second dynamic equilibrium zone T 2 below is at Occurs after the dynamic equilibrium interval T 1 symmetry point 1 2 'is destroyed. When any dynamic balance is created, unless it is absolutely balanced, it will be destroyed after a period of time, and the result of the destruction will inevitably lead to another dynamic balance. After the first dynamic balance T 1 is destroyed as described above, a second dynamic balance T 2 is generated.

Page 8 514806 _Case No. 89123024_Year Month and Amendment _ V. Description of the invention (5) Dynamic balance area: Any data, information or event in nature, after sufficient time, will inevitably present a statistically standard allocation, This standard allocation is called balance, and therefore the balance has existed for a long time, so it is regarded as dynamic balance. The establishment of the dynamic balance area of the present invention is generated by the following methods: Setting a sampling interval: This interval can be For a time interval of 30 minutes, 60 minutes, or longer, the normal distribution chart: the index futures price (sample price) is represented on the vertical axis; and the number of transactions in index futures is represented on the horizontal axis with the [positive] symbol; the equilibrium point : In this sampling interval, the one with the highest transaction frequency (the one with the most positive accumulative characters) is the equilibrium point; in this sampling interval, taking the equilibrium point as the center point, take two of the equilateral triangles that can form the largest area The hypotenuse intersects the vertical axis, and the two points intersected by the hypotenuse on the vertical axis are symmetrical points, where the upper symmetrical point is the relatively high point of the sample price; the lower symmetrical point is the sample price. The relatively low. In the dynamic equilibrium interval between T1 and T2 in Figure 2, the price point with the most dense trading frequency is called the equilibrium point 10 and 10; the equilibrium point is often one of the symmetrical points of the next dynamic equilibrium. The so-called symmetry point is the price of the two end points of dynamic equilibrium, which is a very important reference point. For an explanation of the trading process of the Taiwan Stock Futures Index on October 2nd (examples), please refer to Figures 3 and 4. Figure 3 contains two dynamic balance areas T 1, T 2 and the date of October 2

514806 ___ Case No. 89123024 _year month_g_ 修 不 _ V. Description of the invention (6) Three index dynamic equilibrium zones (T3, Ding 4, Ding 5) in the three periods of 210, 220, and 230. The equilibrium points 10 and 10 'of the two dynamic equilibrium regions of T 1 and T 2 are 6380 and 6280, respectively. The second period 210 in Figure 3 is the first period of the opening on October 2nd; the Taiwan Stocks October Futures Index started trading at 09:00 on the morning of that day. At about 09:28, the highest and lowest points of the futures index price were 6350 and 6300 respectively, and the amplitude was 50 points. Depending on the origin and the low point as the origin, the interpretation of this system will have two possible dynamic equilibrium zones. The first possible dynamic equilibrium area is T 4 (6360, 6330, 6300), the second possible smaller dynamic equilibrium area is T 3 (6350, 6330, 6310), and the number of transactions is 10 0 times. # Because the two dynamic equilibrium areas T 3 and D 4 both use 6 3 3 0 as the equilibrium point (the highest frequency of the transaction price). Calculate the number of transactions above the 6 3 3 0 equilibrium point and below the 6 3 3 0 equilibrium point. The number of transactions above is 40 times and the number of transactions below 60 times. The system studies and judges that when T 4 dynamic balance is destroyed, the amplitude will inevitably expand and the direction of movement will be mostly downward. At this time, the computer automatically generates a 6 2 9 st 0 / p entry logout and a 6 36 Is top entry buy order to the exchange. At that time, the market's second grid was around 6 3 30. Hurry ^ When the market transaction enters the 2 0 period and the price drops to 6 2 9 9, the market executes ^ 6 2 9 9 s top and returns the transaction 6 2 99; At the same time, the automatic trading system will enter the original 6 3 6 1 stop to enter the market Buy, change to 6 38 Is t0p Stop buying. / 38〇 The equilibrium point of the state equilibrium T 1, at this time, the maximum possible loss for the investor is (6 38 1-6 2 9 9) x 2 0 0 = — $ 1 6, 4 0 0 belts. ... When the futures index transaction price continues to fall below 6 2 800, the equilibrium point of T 2 has been dynamically balanced in the period of 200 on September 30. This is done / broken

514806 Case No. 89123024 said Amendment V. Description of the Invention (7) The original stop loss buy order of 6 3 8 1 s t ο ρ will be changed to 6 3 5 1 s t ο ρ buy. 6 3 5 1 is the high symmetry point of dynamic equilibrium τ 3; at this time, the maximum possible loss for the investor is (6351-6299) x 200 = $ 10,400 Taiwan dollars. At the same time in 2 2 0, the market index price reached 6 2 3 0, the 6 2 3 0 was the lowest point in September 30. At this time, the automated trading system will execute in one of two modes. Mode A: The computer executes the buy order according to the user's prior profit setting (6 230 buying). Mode B: Continue to hold 62 9 9 sell orders and 6 3 5 1 stop buy orders; and add 6229 stop sell orders. (6 2 3 0 is the low point of T 2 on September 30). If the user uses the A mode, the profit amount is (6299-6230) x 20 0: $ 1 3,800. Once the market transaction returns, the automatic trading system will Ϊ =: ΐ whether to trade, if the answer is no $, the automatic trading system will become a pure 4B system, and will not automatically trade. meeting. If the answer is yes, the trading system will continue to read and look for the entry machine 6270 ^ 2 with 2 ^ 1 and continue trading. At the end of the 22 0 period, the system reads 6 2 7 0 as the equilibrium point of the 2 2 0 segment (the transaction price Relatively low points form another dynamic equilibrium zone τ ς / bei take the same) and 6 23 0) · skin energy kinetic energy? Honor L ten balance & Τ 5 (6310, 6 2 70, 6 2 30 force zone with 6 3 5 (Computer) 'This will automatically balance Τ 5 and the former dynamic title zone τ 4, # 士, 雒 also array. And the trading system will be transmitted to the exchange at 6 3 0 9 1 imit Α 2 ′ / You Fengyi, Tian 9 to pick up points) At this time, the # 23 () 0 ^ 'exchange brain price of the exchange is 63〇9

Page 11 514806

The maximum possible loss for the investor is (635, 6309 X 2 0 0 =-$ 8,400. Refer to Figure 4 in the 2400 period and the beginning of the 2500 period. The 4 and T 5 double peak pressure areas circle. Automatic trading The system still retains the 6 / τ loss order. During the 25 0 period, the price fell again below 6 28 0 (D 2 equilibrium ^ 6 2 7 0 (T 5 equilibrium point), the system will buy 63 5 1 st 〇 stop loss-into the balance (Move) and buy at 6 3 3 1 stop (63 3 0 is the equilibrium point of T4), and enter the sell order at 6 2 9 st; at this time, the market transaction price is M. The maximum possible loss for a person is (6 33 1-6 3 0 9) χ 〇η 0 = _, 400 Taiwan dollars. At the same time in the 2 50 period, the system's maximum transaction frequency on the day of interpretation is 6 2 7 〇 'becomes a new equilibrium point and A symmetrical point of 619 ° with the day high of 6 35 0 forms a new dynamic equilibrium zone T 6 (6 3 5 0, 6 2 7 0, 6 1 9 0). In the 2 60 time period, the transaction price falls below τ 5 The symmetry point is 6 2 3 0. At this time, the exchange will sell the order, return, and transaction price of 6 2 2 9 st op to 62 2 9. At the same time, the system sets the stop loss of the sell order to 6 2 7 1 st ο p buy (6 2 7 0 for T 6 of Equilibrium point); At this time, the system has a total of 6309 and 6229 sell orders, and the relative stop loss orders are 6 27 1 stop buy. At this time, the maximum possible loss is [(6309-6271) + (6229-6271) ] Χ 200 =-$ 800. The trading price of Taiwan dollars continued to fall and broke the T 6 symmetry point 6 1 9 0. The new T 7 dynamic balance zone (6270, 6200, 6130) was formed. The system changed the 6271stop buy stop loss to 6201stop, and 6200 was T7. Equilibrium point. At this time, the minimum profit is [(6309—6201) + (6229 — 6201)] X 200 = $ 2 7, 20 0 Taiwan dollars.

Page 12 514806 _ Case No. 89123024 __Year Month Day Yazheng Zheng _ V. Description of the invention (9) 1 1 · 5 9 10 minutes before the end of the market transaction, the computer issues a buy order of m0c closing price; and 6201stop Stop loss moved to 6191 (6190 is the symmetric low point of dynamic equilibrium T 6); finally, the market transaction price 6 丨 2 〇 'at 丨 2: 1 〇 The total profit was 288 points [(6309-6120) + (6229 —6120)] X 2 0 0 = 2 9 8 = $ 5 9, 6 0 0 units f. Taxi. Model B: The user did not make a profit at 6 2 3 0 and continued to maintain a sell order of 6 2 9 9 and 6351 81; 0? Stop loss buy order and added 622931: (^ new entry buy order.

In the 260 period, the trading price dropped to 6229, and then fell below the symmetrical point 6190 of the T 6 dynamic equilibrium zone; at this time, the exchange executed the 6229stop sell order and the return transaction price was 6 2 2 9. At the same time, the system sets the stop loss of the sell order to 6271stop buy (6270 is the equilibrium point of T6); at this time, the system has two sell orders of 6299 and 6229, and the relative stop loss orders are 6 2 7 1 stop buying. At this time, the maximum possible loss is [(6 2 9 9 _ 6 27 1) + (6229-6271)] χ200 = — $ 2,800. The transaction price continued to fall and broke the T 6 symmetry point 6 1 0. The new T 7 dynamic equilibrium zone (6270, 6200, 6130) was formed. The system buys 6 2 7 1 stop, and becomes 6201s top. 6200 is the equilibrium point of T7 dynamic balance zone.

At this time, the minimum profit is [(6299—6201) + (6229—6201)] X 200 = $ 25,200. 11.59 minutes before the end of the market transaction, the computer issued a buy order of am〇c closing price; and moved the 6 2 1 stop loss to 6 1 9 1 (6 1 9 0 is a symmetrical low point of dynamic equilibrium τ 6); finally 1 2: 1 〇 market transaction price 6 1 2 0 buy

Page 13 514806 _Case No. 89123024_ Year Month Revision _ 5. Description of the invention (10) Progress, so for this example, the total profit is 2 8 8 points. (6 2 9 9 — 6 1 2 0) + (6229-6120) = 288x 200 = $ 57,600 Taiwan dollars.

In addition, the operation flow of the computerized automatic trading program for the [orthographic] futures and derivative commodities of the present invention will be explained. See Figure 5. The client has a [positive] character chart futures and derivative commodities network automatic trading program (step 30), in which the user can choose whether to trade or not (step 32); if the choice is no, enter the quotation system ( Step 3 4); If you choose Yes, enter the setting of the trading commodity selection and contract quantity (Step 36), and let the computer automatically use the stop loss setting method described above to perform risk control without setting a profit point (Step 38); but at the same time, users can also set profit points according to their own needs (step 40). After the computer automatic trading system is set up by the user, it automatically reads the entry and stop-loss prices (step 4 2), and connects to the broker or the exchange computer host through the Internet or telephone (step 4 4), and the transaction is completed. The price is reported back to the client terminal via the Internet or phone. The above are only examples of the application of the present invention. According to those skilled in the art, and equivalent changes that can be easily considered according to the technical content disclosed by the present invention, they should all fall within the protection scope of the present invention. .

Page 14 514806 Case No. 89123024 Month or month Amendment Brief description of the diagram The first diagram shows the standard allocation of transaction frequency and corresponding statistics with a [positive] graph. The second figure shows the composition of the dynamic balance T 1 and T 2 with the positive figure, the equilibrium point, the symmetry point, and the critical point. The third figure shows the changes in the dynamic balance during the trading process of Taiwan stock futures indexes with [positive] characters. The fourth chart shows the changes in the dynamic balance during the trading process of Taiwan stock futures indexes in [positive] chart. The fifth diagram is a flowchart of the transaction connection and selection operation of the present invention.

Brief description of drawing number: Dynamic balance is τι, T2, T3, T4, T5, Ding 6, Ding 7 Equilibrium point 1 0, 1 0 'Symmetry point 1 2, 1 2' Time series 200, 210, 220, 230, 240 , 250, 260 Dynamic range trading program 3 0 Trading or not 3 2 Quotation system 3 4

Commodity selection and number of contracts 36 Allow trading program risk automatic control 38 Set profit points according to user needs 4 0 Dynamic range trading system automatically interprets entry 4 2 Broker or exchange computer host 4 4

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Claims (1)

514806 Case No. 89123024) The year is: Day Amendment I: .m '16. Scope of Patent Application 1 -..............- (1 · A computerized automatic trading system for futures and derivatives, including the following ::: Steps: At the beginning of the transaction, the trading system uses the f-point and the equilibrium point of the first dynamic balance zone at that time, and sets the entry for buying or selling Price; and according to the symmetry point or equilibrium point of the previous trading day, stop loss is set to control risk;) The automatic trading system allows users to trade online with brokers or exchanges through the f-line. C 2 · The computerized automatic trading system for futures and derivatives as described in item 1 of the scope of the patent application; the establishment of the dynamic balance area is generated by the following methods: setting a sampling interval; drawing a normal distribution map, with the vertical axis and the horizontal axis respectively The axis represents the index futures price (sample price) and the number of times the index futures are traded; determine the equilibrium point, and within this sampling interval, the one with the highest transaction frequency is the equilibrium point; obtain the symmetrical point, and within this sampling interval, use the equilibrium point as the center point Take the two hypotenuses of the equilateral triangle that can form the largest area intersect the vertical axis, and the two points intersected by the two hypotenuses on the vertical axis are symmetrical points, where the upper symmetrical point is the relative high point of the sample price; and the lower The point of symmetry is the relatively low point of the sample price. 3 · The computerized automatic trading system for futures and derivatives as described in item 1 of the scope of patent application; dynamic balance is displayed with orthographic graphics. Page 16 514806 _Case No. 89230024 _ Amendment Month_ Sixth, the scope of patent application 4 · The computerized automatic trading system for futures and derivatives as described in the first scope of the patent application; the dynamic balance range, if there is a transaction price When the symmetry point of the interval is exceeded, a new dynamic equilibrium zone is formed; and the symmetrical point or equilibrium point of the new dynamic equilibrium zone is the basis for new stop loss and new buy and sell orders. Page 17