System and method for optimizing the number of units of a security purchased or sold on a periodic basis

A computer readable storage medium containing instructions that are executable by a computer, the instructions implementing a method of trading a number N of units of a security to be traded at a unit price P in each of a series of consecutive periods based upon a desired monetary amount A for each consecutive period in the series of consecutive periods, the security having a baseline unit price Pb, the instructions comprising:

• a) a first set of instructions for obtaining a value for the baseline unit price Pb greater than zero;
• b) a second set of instructions for solving a mathematical equation for the number N of units for at least one consecutive period in the series of consecutive periods, said mathematical equation comprising a function of the desired monetary amount A, the unit price P and said value of the baseline unit price Pb;
• and
• c) a third set of instructions outputting the number N of units for said at least one consecutive period in the series of consecutive periods to at least one of a user display, a storage device and another computer.

A system for optimizing a number N of units of a security to be traded in each of a series of periods at a unit price P based upon a desired monetary amount A, the system comprising:

• a) a central processing unit;
• b) an application program for controlling said central processing unit, said application program containing a mathematical equation for determining the number N of units for each period of the series of periods comprising a function of the desired monetary amount A, the unit price P and a value of a baseline unit price Pb greater than zero;
• and
• c) memory connected to said central processing unit and storing said application program, said memory containing the number N of units for each period of the series of period, wherein the number N of units for each period is a function of said value of said baseline unit price Pb.

A method of trading a number N of units of a security in each period of a series of periods, the method comprising the steps of:

• a) establishing a value for a baseline price Pb of the security, a current unit price P of the security and a desired monetary amount A for each period;
• and
• b) causing a computer to determine the number N of units for at least one period of the series of periods as a function of said value of said baseline price Pb, said current unit price P, said desired monetary amount A and a gain constant K, wherein
• i) when selling the security, said function automatically increases N when P is greater than Pb and automatically decreases N when P is less than Pb;
• and
• ii) when purchasing the security, said function automatically decreases N when P is greater than Pb and automatically increases N when P is less than Pb.

A computer readable storage medium containing instructions that are executable by a computer, the instructions for implementing a method of trading a number N of units of a security in each period of a series of periods, the instructions comprising:

• a) a first set of instructions for establishing a value for a baseline price Pb of the security, a current unit price P of the security and a desired monetary amount A for each period;
• and
• b) a second set of instructions for determining the number N of units for at least one period of the series of periods as a function of said value of said baseline price Pb, said current unit price P, said desired monetary amount A and a gain constant K, wherein:
• i) when selling the security, said function automatically increases N when P is greater than Pb and automatically decreases N when P is less than Pb;
• and
• ii) when purchasing the security, said function automatically decreases N when P is greater than Pb and automatically increases N when P is less than Pb.