(12) United States Patent
`(10) Patent N0.:
`US 7,941,357 B2
`
`McGeorge
`(45) Date of Patent:
`May 10, 2011
`
`USOO7941357B2
`
`(54) TRADING SYSTEM
`
`(75)
`
`Inventor:
`
`Jeffrey Bruce McGeorge, Queensland
`(AU)
`
`(73) Assignee: Markets-Alert Pty Ltd, New South
`Wales (AU)
`
`( * ) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U-SC 154(b)by 1251 dayS-
`
`(21) Appl. N0.:
`.
`-
`(22) PCT Filed.
`(86) PCT N0.:
`5
`923714(°]))(1t){
`(
`)’ (
`)
`a e.
`
`10/415,022
`
`Oct. 26, 2001
`PCT/AU01/01380
`
`s
`
`ep.
`
`5 2003
`’
`
`(87) PCT Pub. N0.: W002/35400
`PCT PUb' Date: NIay 2’ 2002
`.
`.
`.
`Prlor Publlcatlon Data
`US 2004/0039683 A1
`Feb. 26, 2004
`
`(65)
`
`51
`
`I t. Cl.
`(2006 01)
`($106Q 40/00
`)
`(
`705/36 R' 705/36' 705/37
`(52) U S Cl
`(58) Field of Classification Search .................... 705/37,
`.
`.
`705/ 1'1” 35’ 36’ 36 R
`See application file for complete search history.
`
`(56)
`
`References Cited
`
`1/2004 Gatto .......................... 705/36 R
`6,681,211 B1*
`.. 705/36R
`6/2005 Li
`.............
`6,907,404 Bl’:<
`l.
`.. 705/36R
`6,968,317 131’;< 11’2005 Wall
`t
`
`2:,2007 Langasceeiheetaal.
`..
`...... 705/26
`7,181,417 B1*
`
`.. 705/36 R
`2/2008 Corning et 31.
`7,333,951 B1*
`...... 705/37
`7,356,499 Bl’:<
`4/2008 Amburn
`
`7,461,023 131* 12/2008 Hélvyeg -----
`.. 705/37
`
`5/2002 Wlllrams ..
`.. 705/37
`2002/0055899 Al’:<
`.................... 705/37
`2003/0097327 A1 *
`5/2003 Anaya et a1.
`
`JP
`JP
`JP
`JP
`JP
`JP
`JP
`$8
`WO
`W0
`
`FOREIGN PATENT DOCUMENTS
`09-305656
`11/1987
`07296057
`11/1995
`11136365
`5/1999
`11224289
`8/1999
`11-224295
`8/1999
`2000-092537
`3/2000
`2000092537
`3/2000
`5
`5
`“999732223
`$1339
`00/01172
`1/2000
`00/07385
`2/2000
`(Continued)
`
`*
`
`OTHER PUBLICATIONS
`Tanigawa, T., Kamijo, K; “Stock price pattern matching system-
`dynamic programming neural networks approach”; NEC Corp;
`IEEE Int. Neural Networ< Soc; 1992; p. 1.*
`.
`(Continued)
`
`Primary Examiner 7311a Colbert
`(74) Attorney, Agent, or Firm 7 Renner, Otto, Boisselle &
`Sklar, LLP
`ABSTRACT
`(57)
`A trading system whereby a user device to input stock market
`technical analysis makes requests from a computer terminal,
`Wireless device or other electronic medium with intent to
`
`
`
`US. PATENT DOCUMENTS
`
`8/ 999 Nevo et a].
`5,946,666 A >x<
`................ 705/36 R
`7/2001 Aggarwal et al.
`6,260,148 B1
`6,317,728 B1 *
`11/2001 Kane ........................... 705/36 R
`
`INTERNET, WAP PHONE 0RMOBILE INPUT
`DEVICE
`
`
`
`— fil
`
`
`rcccivc stock market technical analysis alcrts from a server
`through wireless or land-line communication means.
`
`4 Claims, 3 Drawing Sheets
`
`SERVER swrrcu iox
`
`
`
`DROMECOMPUTERS
`
`
`mew:
`aszrman
`awn/mmm
`
`
` ASK DATA
`SERVICES
`4
`E
`
`5M9 SERVER SOF'IWARE
`
`
`
`
`
`mm
`
`
`
`
`
`
`Mm:sanrmm:m52mmm:
`
`m ennui/"mummies
`
`
`
`
`5M5 COMMUNICATION DEVICE
`
`
`
`—(€
`
`BLOOMBERG ET AL - EXHIBIT 1001
`
`BLOOMBERG ET AL - EXHIBIT 1001
`
`

`

`US 7,941,357 B2
`Page 2
`
`WO
`WO
`WO
`WO
`WO
`WO
`
`
`FOREIGN PATENT DOCUMENTS
`00/11587
`3/2000
`00/78067
`12/2000
`01/42884
`6/2001
`01/54016
`7/2001
`01/61589
`8/2001
`01/65339
`9/2001
`OTHER Pl IBHCATIONS
`
`Schmerken, l.; “Technical charting lightsup securities trading”; Wall
`Street Computer Review, vol. 6, No. 9; Jun. 1989; p. l.*
`Byramji, H. M.; "New Product oflers real-tim technical analysis
`charting”; Wall Street Computer Review: vol. 4. No. 6; Mar. 1987; p.
`1.>l<
`
`Nathaniel C. Nash; “Strategies for the Sophisticated”; New York
`Times, Late City Final Edition ED, col. 1; Sunday Nov. 20, 1983; pp.
`1-4.*
`
`George Johnson; “Sifting Hidden Market Patterns for Profit”; New
`York Times, Late Edition-Final ED, col. 2; Monday, Sep. 11, 1995;
`pp. 1-3.*
`Jingtao Yao, Chew Lim Tan and Hean-Lee Poh; “Neural Networks for
`Technical Analysis: A Study On KLCI"; International Journal of
`Theoretical and Applied Finance, vol. 2, No. 2; 1999; pp. 221-241.*
`PRNewswire; QAS Releases PaperTrader 1.0, Portfolio Calculator
`Software for 'leleChart 2000 LSers; Feb. 15, 2000; pp. 1 and 2*
`
`* cited by examiner
`
`

`

`US. Patent
`
`May 10, 2011
`
`Sheet 1 013
`
`US 7,941,357 B2
`
`
` INTERNET, WAP PHONE OR MOBILE INPUT
`DEVICE
`
`
`MESSAGE SENT TO SWITCH
`BOX
`
`SERVER SWITCH BOX
`
`MESSAGES SENT TOIFROM DRONES TO SWITCH BOX
`
`DRONE COMPUTERS
`
`MESSAGE
`SENT FROM
`SWITCH
`
`23’; T°
`SERVER
`
`SMS COMMUNICATIONS DEVICE
`
`ASX DATA
`SERVICES
`
`SMS SERVER SOFTWARE
`
`MESSAGE SENT FROM THE SMS SERVER TO THE
`
`F IG, 1
`
`SMS COMMUNICATION DEVICE
`
`6
`
`

`

`US. Patent
`
`May 10, 2011
`
`Sheet 2 013
`
`US 7,941,357 B2
`
`GATEWAY
`
`ALERT
`MANAGER
`
` ADMINISTRATION
`
`TOOL
`SWITCH #1
`
`\
`
` GUARDIAN
`
`
`
`SWITCH #2
`
`
`
`
`
`
`SAME AS SWITCH
`
`
`#1 SUB
`ARCHITECTURE
`
`
`
`
`
`
`OUTPUT
`SERVICE
`
`OUTPUT
`SERVICE
`
`
`
`“'STORY
`WENT
`
`HISTORY
`
`CLIENT
`
`
`
`HISTORY
`CLIENT
`
`ALERT
`CLIENT
`
`ALERT
`CLIENT
`
`ALERT
`CLIENT
`
`FIG. 2
`
`

`

`US. Patent
`
`May 10, 2011
`
`Sheet 3 013
`
`US 7,941,357 B2
`
`
`Technical
`Analysis Criteria
`
`
`from User
`
` Real Time Stock
`t
`B
`
` market data feed Sys em oundary
`
`
`
`specified Criteria
`to stock market
`data
`
` Drone applies
`
`
`
`
`lf Criteria satisfied,
`if not satisfied,
`no notification
`notification issues
`
`
`in real-time
`
`
`
`
`
`
`

`

`US 7,941,357 B2
`
`2
`A user can instruct the provider to provide technical analy-
`sis criteria of overall stock market trends.
`
`The second system can comprise a users fixed or mobile
`telephone, a personal computing device, a facsimile or pager
`of the user.
`
`3
`
`1
`TRADING SYSTEM
`
`RELATED APPLICATION DATA
`
`This application is a national phase of International Appli-
`cation No. PC'IAU01/01380 filed Oct. 26, 2001 and pub-
`
`lished in the English language.
`
`
`
`TECHNICAL FIELD
`
`
`
`The present invention relates to a trading system which
`combines stock market technical analysis and indicators, as
`well as the field of information technology in mobile com-
`munications.
`
`BACKGROUND ART
`
`There are many individuals and organizations with an
`interest in the stock market for whom up-to-the minute stock
`market information is of vital importance.
`It is also important that they are able to contact their dealers
`or brokers to provide instructions for share market transac-
`tions on an instantaneous basis.
`
`Most individuals in particular who may have other occu-
`pational or hobby interests which take them away from or out
`of communication with stock market events can be severely
`disadvantaged if an event such as a sudden downward adjust-
`ment to share values takes place without their knowledge.
`Stock market technical analysis is becoming increasingly
`sophisticated and measures of events based on technical
`analysis indicators e.g. “moving averages,” “RSI” “stochastic
`osillator” and the like are extensively used to analyze share-
`market price and time data and for share portfolio manage-
`ment.
`
`The forms of analysis involves the measurement of share
`prices against small blocks of time.
`The analysis can be communicated to stock holders
`numerically and/or graphically via computers or television
`monitors.
`
`Most investors have access to personal communication
`systems such as cellular telephones and other digital appara-
`tus operated by wireless technologies.
`
`SUMMARY OF THE INVENTION
`
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`
`
`The network of computers can include components that
`receive user input commands for a software environment
`component residing on the network of computers controlled
`by the users second system.
`The users second system can be capable of wireless or land
`line communications.
`
`The users second system software component can send
`input commands to a software environment that is running on
`the network of computer systems.
`In response to the input command the software environ-
`ment sends a local input command to a software environment
`component that processes the commands which responds by
`issuing a local output command to a server infrastructure
`which in turn sends a remote output command to the users
`second system.
`In response to remote output commands the second system
`can cause an output from the system consisting of stock
`market
`technical analysis information and stock market
`alerts.
`
`A plurality of integrated and related systems can be pro-
`vided to achieve information transfer.
`
`The systems and relationships can be as follows:
`(i) From an Internet software, Wap enabled phone or
`mobile input device, the user sends a message or command
`from a second system device, which is then intercepted by the
`switching box. The message may contain data: including
`information about how to setup the users watches, requests
`for specific data or login information.
`(ii) A server switch box can receive all messages sent from
`any computer or device comiected or connecting to the sys-
`tem. The function of the switch box can be to:
`
`(1) find the least busy drone computer within a network to
`process a specific command or watch.
`(2) route alerts to an sms server to be sent to clients com-
`puters or mobile handsets.
`(3) Send requested information between drone computers.
`(iii) Drone computer systems as part of the network are
`each connected via a local area network using the tcp/ip
`protocol (intcmet protocol). The drones are directly con-
`nected to the exchange data server. The drone has two main
`purposes they are as follows:
`(1) To accept, process and return static stock market data
`which a user has requested from the service.
`(2) To repetitively calculate users requested “watch data”
`(an event set by the user to trigger an alert which is sent
`to the users mobile or static device). The watch data can
`consist of: a simple, price/volume or price plus volume
`watch or a technical analysis request, e.g. trend line
`drawing, moving average alerts, as well as other well
`documented technical analysis systems.
`(iv) Sms server software receives a message from a drone
`
`
`
`(v) An sms connnunications device receives a message
`from the sms server and broadcasts it to the mobile commu-
`nications device.
`
`The present invention provides for the transmission of
`stock market technical analysis indicators, and corresponding
`alerts in relation to the data created by technical analysis
`where the transmission of all data is handled through wireless
`technology, currently expressed as WAP (wireless applica-
`tion protocol) and SMS (short message service) to send and
`receive various types of stock market information using wire-
`less technology and digital television transmission.
`Further features and advantages of the present invention
`will now become apparent from the ensuing description
`which is given by way of example only.
`According to the present invention there is provided a
`method of share trading comprising the steps of:
`(a) aprovider receiving stock market data onanetwork of 60 routed through the SWitCh~ Once the sms server software
`receives the message, the sms server finds the corresponding
`computers,
`users data (i.e. phone number, name) and passes the message
`(b) a user instructing a provider to forward to it stock
`as well as the correct phone number to send the message, to
`market technical analysis criteria via a second system, and
`the sms communications device,
`(c) the provider providing a message to the user of
`requested stock market events via the second system.
`A user can instruct the provider to provide technical analy-
`sis criteria for specific stocks.
`
`

`

`US 7,941,357 B2
`
`3
`In an alternative embodiment of the present invention one
`or more “history servers” can be added, the purpose ofwhich
`is to provide data to any of the computers comiected t0 the
`network.
`
`The history server is in place so that it can act as a gateway
`to the exchange data feed.
`The history server scoops all ofthe data out ofthe data feed
`as it comes along, so that the data never needs to be requested
`from an outside source more than once.
`
`All servers connected to the network request their data
`from the history server.
`The drones are no longer directly connected to the
`exchange data feed, they are in fact connected to the switch-
`box and request their data from the new history server.
`A central data storage has been created to house the data-
`bases created by the history server.
`
`Each history server c01mected to the system uses these
`databases (located on another computer) so that cohesion
`remains throughout the network.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`Aspects ofthe present invention will now be described with
`reference to the accompanying schematic drawings in which;
`FIG. 1 illustrates how elements of a computer system can
`be related according to one aspect of the present invention,
`and
`
`FIG. 2 illustrates an alternative extended computer system
`to that of FIG. 1.
`FIG. 3 illustrates an applica ion of the computer system.
`
`DETAILED DESCRIPTION
`
`
`
`With respect to FIG. 1 of the drawings, element 1 sends a
`message to the switch box about what kind of data to view or
`what kind of indicators to add.
`
`Element 2 the server switch box receives a message from
`the internet, A WAP enabled phone or mobile input device. It
`then finds the least busy drone computer and sends that mes-
`sage to that computer to be processed.
`The switch also processes logins and logoffs of the SMS
`server, drone computers and remote
`
`Element 3 a series of computers connected via a network
`(LAN) which1s also connected to the exchange data server
`and switch systems.
`The drone processes messages from the users (sent via the
`switch). These messages are technical indicator instructions.
`The drone then analysis the stock market at a specified inter—
`nal and applies the users chosen technical and analysis indi-
`cators formulas to the data. If the data is a valid technical
`
`response (e. g. price has reached) the drone sends amessage to
`the switch which then sends it to the SMS server.
`
`
`
`Element 4 data is fed from the exchange to the drone
`computers. (when requested to do so by the drone).
`Element 5 receives a message from a drone computer,
`which1s routed through the switch box.
`The message tells the SMS server to find out what phone to
`send a message to.
`The SMS server then contacts the SMS communications
`
`device and tells it to send the appropriate alert.
`
`Element 6 receives message from the SMS server and
`broadcasts it to the mobile phone number sent to it from the
`SMS server.
`
`With respect to FIG. 2 of the drawings asn internal server
`infrastructure can comprise the components illustrated and
`described below:
`
`4
`Gateway: The gateway is one of two parts directly con-
`nected to the Internet it allows users and network appli-
`ances to connect to their correct server.
`
`Guardian: The guardian keeps track of all major servers on
`the network. Maj or servers being single within the given
`locality. The guardian also has the ability to fimnel small
`amounts of data from load management tools and
`administrator tools directly to the switchbox for routing
`and processing.
`Alert Manager: The alert manager stores and distribute all
`created alerts to the least busy drone computer.
`Administration tool: The administration tool allows a third
`
`party administrator to cmmect to the system and edit,
`remove or add users without interrupting the flow of data
`around the rest of the system.
`INS: The INS stores all of the users details, including
`usemames, passwords and financial data. The INS is a
`request only server from the major side of the network,
`and data inside it can only be changed from the admin-
`istrator tool.
`Switch: The switch server(s) are a routing device which
`routes packets from one server to the other. Any switches
`main job is keeping the network free from traffic botmc-
`ing between many erroneous servers before getting to its
`destination. Switchboxes are also used to apply “load
`balancing” to components of the network which are
`connected to it.
`History Client: The history client(s) contain a large data-
`base of stock market data which is stored every time a
`trade is made on the stock market. The history client is a
`request only client which feeds data from itself to the
`requesting party, be it an internal server or external
`device.
`
`Alert Client: The alert client(s) do all of the mathematical
`calculations for alerts currently running on the system.
`The alert client(s) request data from the history client(s)
`and process that data through a series ofevents. The alert
`client(s) are responsible for generating the final alert
`which is sent via the output service.
`Output Service: The output service is the network connec-
`tion software and hardware which connects the network
`of computers to an output device.
`There are two major advantages of the present invention:
`(1) Technical Analysis indicators can be applied to a stock
`(s) or stock market data and boast programming which
`can inform you of an “indicated” signal to do whatever
`the indicator was designed to infomi the user of, without
`the user having to ponder over the data themselves.
`(2) Teclmical analysis indicators can be set to “repeat” over
`a certain period and can be told to alert the user when an
`“event” happens, via wireless or non wireless technol-
`ogy wherever the user may be.
`The features of the system which result in the advantages
`mentioned above are as follows:
`
`
`
`(1) The system is online while an exchange is open. All day,
`everyday.
`(2) The system can more quickly apply thousands of for-
`mulas and indicators to stock market data.
`(3) The system is more accurate and mathematical in its
`interpretation of results.
`(4) The system can be designed to be “set” and “run”. (e.g.
`the user sets up their indicators and can be alerted of
`them until it is told to be stopped).
`Aspects of the present invention have been described by
`way of example only and it will be appreciated that modifi-
`cations and additions thereto may be made without departing
`from the scope thereof, as defined in the appended claims.
`
`v.
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`

`

`US 7,941,357 B2
`
`What is claimed is:
`
`5
`
`1. A method of informing users of stock market events
`comprising the steps of:
`(a) receiving real-time stock market data on a network of
`computers;
`(b) receiving on the network of computers instructions
`rom a user to specify watch data defining an event, the
`watch data including a stock market technical analysis
`‘equest specifying technical analysis formulae to be
`applied to the real-time stock market data;
`(c) using the network of computers to periodically apply
`he user- specified watch data including the stock market
`echnical analysis formulae to the real-time stock market
`data in real -time to ascertain whether a valid response to
`he watch data has occurred based on the real-time stock
`
`narket data, thereby determining an occurrence of the
`event defined by the user-specified watch data; and
`(d) causing a real -time notification by the network of com-
`outers to be provided to the user via a remote commu-
`ications device upon the occurrence of the event
`
`
`
`6
`defined by the user-specified watch data, the real-time
`notification directed to a remote communications device
`
`3
`
`10
`
`15
`
`of the user so that the user can then provide instructions
`for share market transactions on an instantaneous basis.
`2. A method as claimed in claim 1, wherein receiving step
`(b) includes receiving instructions from the user to provide
`technical analysis criteria for specific stocks, and providing
`the requested technical analysis criteria for the specific stocks
`via the remote communications device.
`
`3. A method as claimed in claim 1, wherein receiving step
`(b) includes receiving instructions from the user to provide
`technical analysis criteria of overall stock market trends, and
`providing the requested technical analysis criteria ofthe over-
`all stock market
`trends via the remote communications
`device.
`4. A method as claimed in claim 1, wherein the remote
`communications device comprises a users fixed or mobile
`telephone, a personal computing device, a facsimile or pager
`of the user.
`
`

`

`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`CERTIFICATE OF CORRECTION
`
`PATENT NO.
`APPLICATION NO.
`
`2 7,941,357 B2
`: 10/415022
`
`DATED
`INVENTOR(S)
`
`: May 10, 2011
`: Jeffrey Bruce McGeorge
`
`Page 1 of1
`
`It is certified that error appears in the above-identified patent and that said Letters Patent is hereby corrected as shown below:
`
`Title page, insert
`
`--(30) Foreign Application Priority Data
`
`October 27, 2000
`
`(AU) ........................ PR 1097--
`
`Signed and Sealed this
`
`Tenth Day of July, 2012
`
`
`
`David J. Kappos
`Director ofthe United States Patent and Trademark Ofiice
`
`