Decentralized Algo-Sharing Infrastructure For Zero-Loss Algorithmic Trading
Presenting a preview of the AlgoShare pending patent # 62629609 (Abstract & first 10 claims only)
ABSTRACT:
The present invention discloses a decentralized Zero-Loss, ecosystem for generating and spreading the wealth based on incentivized and equitable sharing of assets between peers according to their haves or needs, without taxing the economy.
Specifically it relates to the field of algorithmic trading, automated trading or high frequency trading (HFT) of financial instruments. More specifically it relates to systems, apparatus, and methods to create, verify, and maintain a cloud-based autonomous, decentralized blockchain network infrastructure of self-executing smart contracts for sharing the most profitable trading strategy with participating peers so that anyone without any trading experience or capital can profit from automated Zero-Loss trading completely risk-free utilizing fully secured Zero-Loss, Zero-Credit financing.
CLAIMS (First 10 only):
1. A computer-implemented system, apparatus and method of utilizing an autonomous decentralized system of distributed ledger infrastructure and self-executing smart contracts for securely, confidentially and equitably sharing with or leasing to participating peers, top performing algorithmic trading strategies based on a trading algorithm performance global leader-board, for the purpose of trading financial instruments or assets on one or more trading platforms or exchanges with zero-loss efficiency.
2. The system of claim 1 wherein the financial instruments or assets belong to one or more of the asset class consisting of currencies, stocks, equities, futures, options, commodities, bonds, warrants or cryptocurrencies.
3. The method of claim 1 wherein the specific trading strategy of the top performing algorithm is encrypted and secured using private key and public key infrastructure so that it can neither be replicated nor reconfigured nor reverse engineered by the peers who lease it for placing their trades.
4. The system of claim 1 wherein the trading algorithm performance leaderboard is updated and published either in real time, every minute, every hour, every 12-hours, every 24-hours or every week, and consequently top performing algorithms made available for equitable sharing with or leasing to peers for a consideration that may either be on fixed fee basis, or based on a share in the trading profits according to specific terms defined in the self-executing smart contract.
5. The method of claim 1 wherein the self-executing smart contract between the lessor and the lessee of the leased algorithm is verified by consensus of participating peers and immutably maintained in a database of distributed ledger amongst the participating nodes, and it limits the use of the contracted algo to trading specific financial instruments during specific time periods within specific trading exchanges deploying artificial intelligence for eliminating any residual risk in trading decisions due to any real time changes in market conditions that impact the profitability of the leased algorithm.
6. The zero-loss trading system of claim 1 wherein the top-performing algorithm has a profitability half-life estimated by a built-in deep learning module based on stochastic modeling of data obtained via global and local surveillance of financial markets, such profitability half life is dynamic and varies widely depending on the type of financial instrument traded and random events influencing financial markets.
7. The zero-loss trading system of claim 1 wherein artificial intelligence eliminates all possibilities of losses by:
- deploying only the most profitable algo within it’s estimated profitability half life;
- killing the algo if unpredictable extreme market conditions makes the algo unprofitable within it’s profitability half life;
- insuring against unforeseeable losses.
8. The method of claim 1 wherein the participating peers are extremely impoverished individuals or their cooperatives with no capital or trading experience, and their tradable financial instruments or assets are acquired through 100% secured zero-loss financing (ZLF) nano-loans or micro-loans not less than $100 and not more than $1000, under terms that the loaned principle is exclusively used for trading but cannot be withdrawn, and the trading profits are withdrawable only to the extent that they are over and above estimated loan interest accrued.
9. The system of claim 1 wherein the apparatus is an automatic teller machine (ATM) for last mile delivery of financial and profit making algo-sharing, algo-trading and financial instrument exchange services to remote end-users who do not have a computer device or chose not to use a personal computer device.
10. The method of claim 1 wherein the algorithmic trading in financial instruments is high frequency trading (HFT) based on value and frequency of the trades defined by each individual peer operating the automated trading robot.
