Patent ID: 7974906

Claim:
A method for estimating transaction costs of a proposed security trade execution according to a trading strategy selected by a user, and for providing recommendations for the selected trading strategy, said method comprising the steps of: providing a server connected to a communication network, said server being programmed with a specific strategy transaction cost optimization algorithm; receiving at said server over said network data defining parameters of a proposed trade execution from a user, and data specifying a user-selected trading strategy, said trading strategy data including a sequence of share quantities of securities to be traded per time interval for a given trading horizon; and estimating the transaction costs of the received proposed trade execution based on the user-selected trading strategy and market data, and recommending actions, which include recommended changes to said user-selected trading strategy, determined by said specific strategy transaction cost optimization algorithm that minimize said transaction costs under said user-selected trading strategy, whereby a user may minimize transaction costs by taking said actions in executing said trade; wherein, said user-selected trading strategy is selected from among a plurality of predefined trading styles, or specifically defined by said user.