Patent ID: 7788156

Claim:
A computer implemented method executed on a processor in communication with a memory and an output device of evaluating an investor's performance against performances of other investors by utilizing information stored in said memory pertaining to at least one first transaction made by the investor involving at least one investment and to at least one second transaction made by the investor involving at least another investment, said method comprising the steps of: determining by the processor a first average return value for the at least one first transaction, said first average return value corresponding to an average rate of return of the at least one first transaction involving the investment for a first period of time; determining by the processor a second average return value for the at least one second transaction, said second average return value corresponding to an average rate of return of the at least one second transaction involving the investment for a second period of time; calculating by the processor a first standard measure of confidence, for said first average return value and a second standard measure of confidence for said second average return value; calculating by the processor a first degree of freedom for said first average return value and a second degree of freedom for said second average return value; determining by the processor a first probability for said first period of time by utilizing said first standard measure of confidence and said first degree of freedom, and a second probability for said second period of time by utilizing said second standard measure of confidence and said second degree of freedom; generating by the processor a conditional raw score for the investor by utilizing said first and second probabilities; generating by the processor an adjusted raw score by utilizing the conditional raw score, said total number of transactions occurring during the first period of time, and said total number of transactions occurring during the second period of time; determining by the processor a performance score indicative of the investor's performance relative to other investors based on the adjusted raw score comparing by the processor the performance score of the investor against performance scores of the other investors to produce an evaluation of the inventor; and electronically transmitting by the processor the evaluation of the investor to the output device.