Is possible to patent a trading algorithm (indicator)
<p>I know some algorithms are patentable, but not sure what are the resctrictions and limitation for this.</p>
<p>My question is specific for a trading indicator, something like MACD, or RSI etc, is possible to patent those things?</p>
<p>For example:</p>
<ol>
<li>Calculate the average of the last N1 and N2 (customizable) prices</li>
<li>Plot those averages together in the same chart</li>
<li>Show a BUY signal when they cross</li>
</ol>
<p>Is something like that patentable? and if yes, it makes sense to patent it or anybody can change a very small part to null the patent, for example &quot;add 0.01% to every average calculated in step 1&quot;</p>

<p>This would have clearly been patentable subject matter in the U.S. a few years ago. Now the Supreme Court has made it very hard to get claims like this. They are quick to reduce any such claim to its &quot;gist&quot; (an improper way to analyze a claim) and say &quot;it is buy low and sell high&quot;.</p>
<p>A skilled patent practitioner still has a chance of getting something like this granted but the enforceablity in court might be iffy. Speaking of enforceablity, I do not see how you would be able to detect that someone was infringing even if they were not trying to work around the wording of your claims.</p>
<p>In terms of ranges and someone getting around a claim by a  minute amount, there is a whole body of literature on claiming ranges in may fields that your patent attorney will be familiar with.</p>

patents