U.S. patent application number 12/197302 was filed with the patent office on 2008-12-18 for method and system for providing downside protection of stock market investments.
Invention is credited to William Robert Bailey, JR., JAMES MARTIN BILLINGS.
Application Number | 20080313099 12/197302 |
Document ID | / |
Family ID | 25100377 |
Filed Date | 2008-12-18 |
United States Patent
Application |
20080313099 |
Kind Code |
A1 |
BILLINGS; JAMES MARTIN ; et
al. |
December 18, 2008 |
METHOD AND SYSTEM FOR PROVIDING DOWNSIDE PROTECTION OF STOCK MARKET
INVESTMENTS
Abstract
A method and system for providing downside protection of stock
market investments. The present invention allows stock prices to be
expressed as a stop loss percentage of the high value the stock
price attains rather that a fixed or "hard entered" number. The
stop loss percentage of the high value allows stock prices the
freedom to increase in price while protecting gains that are being
made and still providing downside protection for market declines.
The system receives security information input from the user and
also data link information of current stock information, the system
determines new high values and calculates a sell threshold price
based on the stop loss percentage and the high value of the
security. When the market price is less than the sell threshold
price, the system notifies the user or automatically sells the
security.
Inventors: |
BILLINGS; JAMES MARTIN;
(Sealy, TX) ; Bailey, JR.; William Robert;
(Irving, TX) |
Correspondence
Address: |
JAMES ADDISON BARRY, JR.;J Barry Law Office
115 N Castle Heights Ave, Suite 205
LEBANON
TN
37087
US
|
Family ID: |
25100377 |
Appl. No.: |
12/197302 |
Filed: |
August 24, 2008 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
09774147 |
Jan 30, 2001 |
7418420 |
|
|
12197302 |
|
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Current U.S.
Class: |
705/36R ;
705/35 |
Current CPC
Class: |
G06Q 40/00 20130101;
G06Q 40/04 20130101; G06Q 40/06 20130101 |
Class at
Publication: |
705/36.R ;
705/35 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00; G06Q 90/00 20060101 G06Q090/00 |
Claims
1. A method for providing downside protection of stock market
investments for managing an investment portfolio by an automated
data processing system having a memory with an input device
connected with the automated data processing system, the method
comprising the steps of: a. entering a name of a security into the
automated data processing system through the input device; b.
storing the name of the security in the memory; c. entering a stop
loss percentage for the security into the automated data processing
system through the input device; d. storing the stop loss
percentage for the security in the memory; e. entering a buy price
of the security into the automated data processing system through
the input device; f. storing the buy price of the security in the
memory as the high value; g. linking the automated data processing
system by a data link to current stock information; h. reading a
market price of the security from the current stock information; i.
comparing the market price of the security to the high value, and
when the market price of the security exceeds the high value,
setting the high value equal to the market price of the security to
generate a new high value; j. storing the new high value for the
security in memory as the high value; k. multiplying the stop loss
percentage by the high value and subtracting the resulting product
of the stop loss percentage multiplied by the high value from the
high value to generate a sell threshold price; l. comparing the
sell threshold price to the market price, and executing a sell
event when the market price is below the sell threshold price; and
m. repeating the linking step g through the comparing the sell
threshold price step l until the sell event occurs.
2. (canceled)
3. A method for providing downside protection of stock market
investments as set forth in claim 1 wherein the sell event further
includes printing a summary of the sell information.
4. A computer-readable medium having imprinted therein a computer
program containing instruction steps such that upon installation of
the computer program in a general-purpose computer provides for
downside protection of stock market investments in investment
portfolio and cause the general-purpose computer to perform the
steps of: a. receiving a name of a security into the automated data
processing system through the input device; b. storing the name of
the security in the memory; c. receiving a stop loss percentage for
the security into the automated data processing system through the
input device; d. storing the stop loss percentage for the security
in the memory; e. receiving a buy price of the security into the
automated data processing system through the input device; f.
storing the buy price of the security in the memory as the high
value; g. linking the automated data processing system by a data
link to current stock information; h. reading a market price of the
security from the current stock information; i. comparing the
market price of the security to the high value, and when the market
price of the security exceeds the high value, setting the high
value equal to the market price of the security to generate a new
high value; j. storing the new high value for the security in
memory as the high value; k. multiplying the stop loss percentage
by the high value and subtracting the resulting product of the stop
loss percentage multiplied by the high value from the high value to
generate a sell threshold price; l. comparing the sell threshold
price to the market price and executing a sell event when the
market price is below the sell threshold price; and m. repeating
the linking step g through the comparing the sell threshold price
step l until the sell event occurs.
5. A system for providing downside protection of stock market
investments comprising: a. an input device for receiving entry of a
name of a security, a stop loss percentage for the security, and a
buy price for the security by a user, and for receiving entry of a
market price of the security; b. a memory operationally connected
to the input device to store the name of the security, the stop
loss percentage for the security, the buy price for the security,
and a high value for the security; c. an automated data processor
operationally connected with the input device and the memory, the
automated data processor for determining if the market price is
higher than the high value of the security, and for determining if
the market price of the security is less than a sell threshold
price where the sell threshold price is the product of the stop
loss percentage times the high value of the security subtracted
from the high value of the security and if so then to initiate a
sell event; and d. an output device to notify the user of the sell
event.
6. A system for providing downside protection of stock market
investments as set forth in claim 5 wherein the output device
further comprises the means for automatically selling the security
when the sell event occurs.
7. A system for providing downside protection of stock market
investments as set forth in claim 6 wherein the input device is
configured to receive the market price of the security and
includes: e. a data link connected to provide current stock
information for entering the current market price.
8. (canceled)
9. A method for providing downside protection of stock market
investments as set forth in claim 1 wherein when the sell event is
received the output device automatically executes a sell order for
the security.
Description
CROSS-REFERENCE TO RELATED APPLICATION
[0001] This application is a continuation of prior application Ser.
No. 09/774,147, filed Jan. 30, 2001.
TECHNICAL FIELD
[0002] The present invention is related to the Field of investment
tracking systems. More specifically, this disclosure presents a
method and system for providing downside protection of stock market
investments.
BACKGROUND OF THE INVENTION
[0003] Currently, stop losses for stocks must be "hard entered."
"Hard entered," describes a fixed value at which the stock will
sell. For example, if a person purchases a stock for $100 per share
and plans to be out of town for several days, there are limited
options to protect the investment from market decline. However, a
person might want to sell the stock, for example, if it drops in
value to 20 percent of its highest level. The only option currently
available is to "hard enter" an $80 (20% drop from $100) stop loss.
Yet, if while out of town the stock increases to $150 in price and
then begins to drop, the stock would not be sold until it reaches
$80. Conventional stop losses can offer downside protection but not
upside protection.
[0004] Difficulties with the current systems include a failure to
provide stop losses to follow the stock up while providing downside
protection in case of market decline, a failure to allow protection
of gains that could be realized while the investor is unable to
"watch" their investment, and a failure to have the "trigger" for
selling the stock expressed as a percentage of the purchase price
or high value of the stock.
[0005] There is also a failure to provide a combination type of
protection that would allow for percentage amount protection in a
growing market until the percentage increases to a maximum value
for the stock at which point the investor or manager desires to
changeover to the fixed amount.
[0006] Therefore, it is desirable to provide a system and method
which provides stop loss protection that tracks and updates the
highest price achieved by an investment and that functions by
helping to ensure that the price does not drop below a fixed
percentage of the latest high price. It is also desirable to
provide a system and method that provides the additional option of
setting a fixed price drop when the high price crosses a particular
threshold to act in substitute for the percentage-based price drop,
generally to ensure a smaller loss than the percentage-based price
drop, which grows in absolute terms with increases in the latest
high price.
SUMMARY OF THE PRESENT INVENTION
[0007] It is a primary object of the present invention to provide a
method and system for downside protection of stock market
investments. This method and system express a stop loss as a
percentage of the stock high value rather than a "hard entered"
number. It provides a program to allow the stop loss to follow the
stock up while providing downside protection in case of market
decline. For example, a person purchases $100 per share of stock
and plans to be out of town for several days. The person could
decide to sell the stock if the price declines 20% in price from
the highest level it achieves. Now using the example above, if the
stock increases to $150 per share, the program could recalculate a
new high value and sell the stock when the value decreases to $120
(20% decline from $150) instead of the $80 in the previous example.
This feature would allow protection of gains that could be realized
while the investor is unable to "watch" their investment. If the
stock were to decline from the purchase price of $100 to $80, the
feature would trigger a sell like a conventional stop loss. The
exception is that the "trigger" would be expressed as a percentage
of the purchase price rather than a "hard entered" number. The
program would allow investors to place stop losses on their stocks
based on percentage of high value achieved when they could not
watch their investments on a moment-to-moment basis. As
extended-hour trading becomes an immediate reality, the program
would become a greater benefit to investors.
[0008] It would also be desirable to provide a hybrid or
combination type of program. During a growing market, the stop loss
percentage would protect investors by adjusting the sell position
as the high value increases. The stop loss percentage would also
increase as the high values increase. An investor may desire to
limit this stop loss amount from the high value to a maximum stop
loss amount. The hybrid or combination program would allow for
percentage amount protection in a growing market until the
percentage increases to a maximum value for the stock at which
point the investor or manager desires to change to the fixed
amount.
[0009] The system of the present invention, in one embodiment,
comprises a method for providing downside protection of stock
market investments for managing an investment portfolio by an
automated data processing system having a memory with an input
device connected with the automated data processing system.
Specifically, the method comprises steps of: [0010] a. entering a
name of a security into the automated data processing system
through the input device; [0011] b. storing the name of the
security in the memory; [0012] c. entering a stop loss percentage
for the security into the automated data processing system through
the input device; [0013] d. storing the stop loss percentage for
the security in the memory; [0014] e. entering a buy price of the
security into the automated data processing system through the
input device; [0015] f. storing the buy price of the security in
the memory as the high value; [0016] g. linking the automated data
processing system by a data link to current stock information;
[0017] h. reading a market price of the security from the current
stock information; [0018] i. comparing the market price of the
security to the high value, and when the market price of the
security exceeds the high value, setting the high value equal to
the market price of the security to generate a new high value;
[0019] j. storing The new high value for the security in memory as
the high value; [0020] k. multiplying the stop loss percentage by
the high value and subtracting the resulting product from the high
value to generate a sell threshold price; [0021] l. comparing the
sell threshold price to the market price, and executing a sell
event when the market price is below the sell threshold price; and
[0022] m. repeating the linking step g through the comparing the
sell threshold price step l until the sell event occurs.
[0023] Another embodiment, or aspect, of the present invention
further comprises the steps of: entering a maximum stop loss amount
into the automated data processing system through the input device,
the maximum stop loss amount representing a maximum amount for the
security to decrease from the high value at which point the
security should be sold; storing the maximum stop loss amount in
the memory; comparing the stop loss percentage multiplied by the
high value to the maximum stop loss amount, and when the stop loss
percentage multiplied by the high value exceeds the maximum stop
loss amount the maximum stop loss amount is used to generate the
sell threshold price; and calculating the sell threshold price
using the maximum stop loss amount by subtracting the maximum stop
loss amount from the high value of the security.
[0024] Yet another embodiment, or aspect, of the present invention
the sell event includes printing a summary of the sell
information.
[0025] The present invention includes a computer-readable medium
having imprinted therein a computer program containing instruction
steps such that upon installation of the computer program in a
general-purpose computer, the computer is capable of performing the
method of the present invention.
[0026] A system of the present invention, in one embodiment,
comprises an input device for receiving entry of a name of a
security, a stop loss percentage for the security, and a buy price
for the security by a user, and for receiving entry of a market
price of the security; a memory operationally connected to the
input device for storing the name of the security, the stop loss
percentage for the security, the buy price for the security, and a
high value for the security; an automated data processor
operationally connected with the input device and the memory, the
automated data processor being operative for determining if the
market price is higher than the high value of the security, and for
determining if the market price of the security is less than a sell
threshold price where the sell threshold price is the product of
the stop loss percentage times the high value of the security and
if so then for initiating a sell event; and an output device for
notifying the user of the sell event.
[0027] In another embodiment of the present invention, the present
invention output device further comprises the means for
automatically selling the security when the sell event occurs.
[0028] In yet another embodiment or aspect of the present
invention, the system includes the input device wherein the input
device is configured to receive the market price of the security
and includes a data link connected to provide current stock
information for entering the current market price.
[0029] In another embodiment or aspect of the present invention,
the input device includes a means for entering a maximum stop loss
amount; the memory includes a means for storing the maximum stop
loss amount; and the processor includes a means for determining if
the market price is less than the high value minus the maximum stop
loss amount, and when the market price is less than the high value
minus the maximum stop loss amount, calculating the sell threshold
price by subtracting the maximum stop loss amount from the high
value.
BRIEF DESCRIPTION OF THE DRAWINGS
[0030] These and other features, aspects, and advantages of the
present invention will become better understood with regard to the
following description, appended claims, and accompanying drawings
where:
[0031] FIG. 1 is a block diagram depicting an embodiment of the
present invention;
[0032] FIG. 2a is a screen shot illustrating an example of an
opening menu and depicting a selection of the Stock Data screen of
an embodiment of the present invention;
[0033] FIG. 2b is a screen shot illustrating the Stock Data screen
and depicting the selection of an Add Client Stock screen of an
embodiment of the present invention;
[0034] FIG. 2c is a screen shot illustrating an Add Client Stock
Information screen of the Add Client Stock selection of an
embodiment of the present invention;
[0035] FIG. 2d is a screen shot illustrating the Stock Data screen
and depicting the selection of an Edit Client Stock screen of an
embodiment of the present invention;
[0036] FIG. 2e is a screen shot illustrating the Edit Client Stock
screen of the Edit Client Stock selection of an embodiment of the
present invention;
[0037] FIG. 2f is a screen shot illustrating the opening menu and
depicting the selection of a Current Stock Activity screen of an
embodiment of the present invention;
[0038] FIG. 2g is a screen shot illustrating the Current Stock
Activity screen of an embodiment of the present invention;
[0039] FIG. 2h is a screen shot illustrating the opening menu and
depicting the selection of a Portfolio Value Report screen of an
embodiment of the present invention;
[0040] FIG. 2i is a screen shot illustrating the Stock Portfolio
Value screen of the Portfolio Value Report selection of an
embodiment of the present invention;
[0041] FIG. 2j is a screen shot illustrating another Add Client
Stock Information screen of the Add Client Stock selection of an
embodiment of the present invention;
[0042] FIG. 2k is a screen shot illustrating another Edit Client
Stock screen of the Edit Client Stock selection of an embodiment of
the present invention;
[0043] FIG. 3 is a flow chart depicting the steps in the method of
an embodiment of the present invention;
[0044] FIG. 4 is a flow chart depicting the steps in the method of
another embodiment of the present invention;
[0045] FIG. 5 is a logic chart depicting the sequence of operations
of an embodiment of the present invention; and
[0046] FIG. 6 is a logic chart depicting the sequence of operations
of another embodiment of the present invention.
DETAILED DESCRIPTION
[0047] The present invention relates to the field of stock market
computer programs. More specifically, this disclosure presents a
method and system for providing downside protection of stock market
investments. The following description is presented to enable one
of ordinary skill in the art to make and use the invention and to
incorporate it in the context of particular applications. Various
modifications, as well as a variety of uses in different
applications will be readily apparent to those skilled in the art,
and the general principles defined herein may be applied to a wide
range of embodiments. Thus, the present invention is not intended
to be limited to the embodiments presented, but is to be accorded
the widest scope consistent with the principles and novel features
disclosed herein.
[0048] The present invention is useful for providing downside
protection of stock market investments. A few of the goals of the
present invention include allowing stock prices to be expressed as
a stop loss percentage rather than a "hard entered" number, and
allowing stock prices the freedom to increase in price while
protecting gains that have been made while providing downside
protection due to market declines.
[0049] Much of this system of providing downside protection of
stock market investments involves buying, selling and monitoring
securities, so some definitions are presented for clarity of
terminology. "Hard entered," describes a fixed value at which the
stock will sell. Downside is defined as a potential loss incurred
by the investor after initial gain. This refers to the possibility
of decline of the market price of the stock. Upside is defined as a
gain beyond initial purchase price or the possibility of increases
in the market price of the stock. High value is the maximum value
reached by security during ownership. The high value could be
either the initial buy price or the updating ticker value. Stop
loss is defined as a tool used by investors to limit losses by
identifying parameters within which a stock will be bought or sold.
It is the maximum amount a buyer will risk on the security. Sliding
stop loss is defined as the stop loss adjusted for the high value
of the security. The sliding stop loss value follows or slides
along with the constantly changing value of the stock. Stop loss
percentage is defined as a percentage of the high value reached by
the security that will be placed at risk. Sell threshold price is a
value at which a security will be sold to protect gains. Break
point is an abbreviated name for the sell threshold price. Sell
event is when a threshold has been met and the invention recommends
selling the security to maximize gains. Maximum stop loss amount is
a maximum acceptable level of loss in a security expressed in an
explicit dollar amount that will trigger a sell event.
[0050] A block diagram depicting an embodiment of the present
invention is shown in FIG. 1. This embodiment comprises an input
device 100, an automated data processor 104 operationally connected
to the input device 100 for receiving data and information from the
input device 100, a memory 102 operationally connected to the
automated data processor 104 for receiving data from the automated
data processor 104 and storing the data in memory 102 and providing
the data to the automated data processor 104, and an output device
106 operationally connected to the automated data processor 104 for
notifying the user to sell the security or for automatically
selling the security. The present invention may be utilized on a
general-purpose computer, such as an IBM compatible PC, VAX, Mac or
other computer known to those in the art. Additionally, the
storing, reading, comparing, and multiplying could be encoded onto
special purpose chips for creating special purpose hardware for
carrying out the present invention. The present invention could be
implemented on a wide area network, local area network, through a
dial up connection to a dedicated machine, through an Internet or
intranet connection. The input device 100 may include a keyboard
for input of a name of a security, a buy price of the security, a
stop loss percentage for the security, and a market price of the
security. The input device 100 may further include a data link
connecting the automated data processor 104 and a data source of
current stock information for reading a market price of the
security from current stock information. The memory 102 has the
capability of storing the name of at least one security, the buy
price of the security, the high value of the security, and the stop
loss percentage of the security. The automated data processor 104
is operable for comparing the market price with the high value and
determining if the market price is higher, multiplying the stop
loss percentage times the high value subtracted from the high value
to generate a sell threshold price, comparing the sell threshold
price to the market price, and executing a sell event when the
market price is below the sell threshold price, and receiving input
information and storing the information input into memory. The
output device 106 is communicatively connected with the automated
data processor 104 and is capable of receiving a signal to execute
a sell event. When the sell event is received the output device
could notify a user to sell the stock or it could automatically
execute a sell order for the security.
[0051] FIG. 2a through 2i provide example screen shots to further
clarify the use of an embodiment of the present invention. The
screen shots are provided to assist the reader in gaining a clear
understanding of the method of the present invention. The screen
shots are merely provided as examples of user interface and are not
material to the substance of the invention. An example of a typical
screen shot illustrating the opening menu screen is shown in FIG.
2a, specifically depicting the user selecting the Stock Data
screen. Next, an example of a typical screen shot illustrating the
Stock Data screen is shown in FIG. 2b, specifically depicting the
user selecting the Add Client Stock screen. An example of a typical
screen shot illustrating the Add Client Stock Information screen is
shown in FIG. 2c, specifically depicting the user adding a stock
name, a number of shares, a buy price and a stop loss percentage.
Next, an example of a typical screen shot illustrating the Stock
Data screen is shown in FIG. 2d, specifically depicting the user
selecting the Edit Client Stock screen. An example of a typical
screen shot illustrating the Edit Client Stock Information screen
is shown in FIG. 2e. Another example of a typical screen shot
illustrating the opening menu screen is shown in FIG. 2f, this
screen shot specifically depicts the user selecting the Current
Stock Activity screen. Next, an example of a typical screen shot
illustrating the Current Stock Activity screen is shown in FIG. 2g,
specifically depicting the name, stop loss percentage, the high
value, the status of the security as well as other information. A
further example of a typical screen shot illustrating the opening
menu screen is shown in FIG. 2h, this screen shot specifically
depicting the user selecting the Stock Portfolio Value screen.
Next, an example of a typical screen shot illustrating the Stock
Portfolio Value screen is shown in FIG. 2i, specifically depicting
the name, number of shares, buy price, initial values, the market
price, the current value, and dollar and percentage changes.
[0052] Additional embodiments may include the input device 100 and
memory 102 with the capability to additionally input and store a
maximum stop loss amount. The automated data processor 104 would
also have the operability to compare the stop loss percentage
multiplied by the high value to the maximum stop loss amount and
when the stop loss percentage multiplied by the high value exceeds
the maximum stop loss amount use the maximum stop loss amount to
generate the sell threshold price. The maximum stop loss amount is
subtracted from the high value to generate the sell threshold price
using the maximum stop loss amount. This hybrid or combination stop
loss feature would be useful where a percentage of stop loss is
desired during the early growth stages of a stock or security when
a percentage of the high value is relatively small. As the stock or
security grows the percentage of the high value can become quite
large, and at this point at a fixed amount of stop loss may become
desirable. This hybrid or combination stop loss feature would
automatically transition from the stop loss percentage to the fixed
amount at the point where the two values crossover. FIGS. 2j and 2k
provide additional example screen shots to further clarify the use
of other embodiments of the present invention. An example of a
typical screen shot illustrating the Add Client Stock Information
screen is shown in FIG. 2j, specifically depicting the additional
feature of a stop loss amount in addition to the stock name, the
number of shares, the buy price and the stop loss percentage. An
example of a typical screen shot illustrating the Edit Client Stock
Information screen is shown in FIG. 2k.
[0053] The present invention contemplates a computer-readable
medium including a computer program containing instruction steps
such that upon installation of the computer program in a
general-purpose computer the methods of the present application
could be performed.
[0054] The present invention also relates to a method for providing
downside protection of stock market investments. A flow chart
depicting the steps in the method of an embodiment of the present
invention is shown in FIG. 3. Additionally a logic chart depicting
the sequence of operations of an embodiment of the present
invention is shown in FIG. 5. This method comprises the following
steps: first, an entering a name of a security step 310 is
performed, wherein the name of the security is entered into the
automated data processing system through the input device. Next in
a storing the name of the security step 312, the entered name of
the security is stored in memory by the automated data processing
system. Next in an entering stop loss percentage of security step
314, the stop loss percentage of the security is entered into the
automated data processing system through the input device. The stop
loss percentage represents a percentage stop loss from the high
value for the security at which point the security should be sold.
Next in a storing the stop loss percentage step 316, the stop loss
percentage of the security is stored in memory by the automated
data processing system. Next in an entering the buy price of the
security step 322, the buy price of the security is entered into
the automated data processing system through the input device. Next
in a storing the buy price step 324, the buy price of the security
is stored in memory by the automated data processing system.
[0055] Examples of interfaces for the user entry inputs are
depicted in FIGS. 2c and 2c. Next in a linking step 330, the
automated data processing system is linked by a data link to
current stock information. The preferred method of linking this
data is by a data feed from the Internet, but other
telecommunications or memory storage data sources could be
utilized, such as by compact disk, computer diskette, e-mail file
transfer, or modem link to another computer system. The Internet is
a network connecting many computers all over the world, through
phone lines and connection hubs (servers), which coordinate the
transfer of data from one computer to another. Some computers on
the Internet have stock and investment data, and information from a
number of these computers is accessed to feed data into the
automated data processor of the invention. Data from other types of
computer networks could also be utilized. Next in the reading
market price of security step 332, the automated data processor
reads the market price of the security from the data in the current
stock information. Input steps 310, 314, 322, and 332 are depicted
as the Read in ( ) step 500 in a logic chart showing the sequence
of operations shown in FIG. 5. Next in the comparing market price
step 334, the automated data processor compares the market price of
the security to the high value, and when the market price of the
security exceeds the high value setting the high value is set equal
to the market price of the security. Step 334 of FIG. 3 is
represented as the if market price>high value logic step 502
shown in FIG. 5. Next in a storing the high value step 336, the new
high value is stored in memory for future comparisons of market
prices. The high value=market price logic step 504 shown in FIG. 5
corresponds to storing the high value step 336. Next in the
multiplying stop loss percentage by high value step 338, the stop
loss percentage is multiplied with the high value of the security
and the result is subtracted from the high value to generate the
sell threshold price. This is also depicted as the multiplying stop
loss percentage by high value step 506 as shown in FIG. 5. Next in
a comparing the sell threshold price step 350, the sell threshold
price is compared to the market price and when the market price is
below the sell threshold price a sell event is executed. The sell
event is an output to the user that the stock should be sold. An
example of an output to the user is depicted in FIG. 2g as a sell
status on the Current Stock Activity screen. The user could also
designate that the sell event is actually selling the security over
the data link established by the automated data processor. The sell
event step 510 is depicted in the logic chart shown in FIG. 5. In
steady-state operation, the linking step 330 through the comparing
sell threshold price step 350 is repeated until the sell event
occurs. This is depicted as the path 512 in the logic flow chart
depicting the sequence of operations of this embodiment of the
present invention shown in FIG. 5.
[0056] A flow chart depicting the steps in the method of another
embodiment of the present invention is shown in FIG. 4. This
embodiment further comprises the step of: entering a maximum stop
loss amount step 318, wherein the maximum stop loss amount is
entered into the automated data processing system through the input
device. The maximum stop loss amount represents a maximum amount
for the security to decrease from the high value at which point the
security should be sold. An example of the maximum stop loss amount
entry is depicted in FIGS. 2j and 2k. Next in the storing the
maximum stop loss amount step 320, the maximum stop loss amount
entered through the input device is stored in memory. Next in the
comparing the stop loss percentage multiplied by the high value to
the maximum stop loss amount step 340, the stop loss percentage
multiplied by the high value is compared to the maximum stop loss
amount and when the stop loss percentage multiplied by the high
value exceeds the maximum stop loss amount, the maximum stop loss
amount is used to generate the sell threshold price. The maximum
stop loss amount step 340 corresponds with the if stop loss
percentage logic step 520 shown in FIG. 6. Next in the calculating
the sell threshold price using the maximum stop loss amount step
342, the maximum stop loss amount is subtracted from the high value
of the security to generate the sell threshold price. An example of
the calculating the sell threshold price using the maximum stop
loss amount step 342 is also shown in the logic flow chart
depicting the sequence of operations as the calculate sell
threshold price using max stop loss amount step 522 shown in FIG.
6.
[0057] In another embodiment of the present invention, the sell
event may include an option wherein the sell information is printed
for the user. The sell information could include but not be limited
to the name, buy price, the high value, and the sell price.
* * * * *