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US 2014/0195399 A1Published application
Method and system for achieving positive net profits statistically
OwnerChuan Wang, Andrew Ming Wanginventors
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OwnerChuan Wang, Andrew Ming Wanginventors
Estimating the term…
This invention discloses an investment method for achieving consistent positive profits, positive net profits, or “absolute return”, statistically. It begins with evaluating a trading system. Average and standard deviation are calculated from occurred individual trading profits to estimate expected average profit and risk. Expected cumulative profits and cumulative standard deviations are then estimated from their corresponding individual counterparts. An expected performance map may be constructed with the expected cumulative profit and lower profit limit plots. To ensure positive net profits can be achieved, a high probability confidence level is specified, and a lower profit limit is estimated. If the expected average profit is positive, expected cumulative profits will continuously increase. After sufficient trades, the lower profit limit will also increase and eventually become positive. Whereby, positive net profits can be achieved with high probability, while risk is limited by the lower profit limit. Thus risk occurs at a low probability.
A method for achieving a positive net profit statistically, comprising the steps of:
A method using a plurality of trading systems for achieving a positive net profit statistically, comprising the steps of:
A machine using a plurality of trading systems for achieving a positive net profit statistically comprising:
Dependencies are inferred from the claim text.