System and method for money management using a plurality of profit levels in an electronic trading environment
First Claim
18. A method for money management in an electronic trading environment, the method comprising:
- defining a first plurality of money management filters, wherein each filter is associated with at least one filter criterion and filter condition, wherein the at least one filter criterion comprises at least a net profit level, and wherein the at least one filter condition comprises at least one maximum order quantity and maximum net position that are used to control order parameters;
entering an order to be sent to an electronic exchange, wherein the order is associated with a tradeable object;
determining a net profit level for a trader based at least in part on a trader'"'"'s net position and a current market level;
based on the net profit level, selecting a first money management filter to control order parameters associated with the order; and
modifying an order quantity associated with the order to a first maximum order quantity associated with the first selected money management filter if the order quantity is higher than the first maximum order quantity.
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Accused Products
Abstract
A system and method for money management in an electronic trading environment are presented. According to one embodiment, a money management application intercepts an order before the order is sent to an exchange, and determines a plurality of P/L levels, based on which the money management application then selects a set of money management parameters to be used to control or modify order parameters before the order is sent to the exchange. The plurality of profit levels may include a net profit level determined based on a trader'"'"'s net position and a current market level, a realized profit level determined based on trader'"'"'s sells and buys associated with the tradeable object, or an open profit level determined based on the realized and net profit levels. The set of money management parameters may include a maximum order quantity and a maximum net position so that, for example, if the order quantity associated with the order is higher than the maximum order quantity associated with the applicable set of money management parameters, the order quantity may be modified to the maximum order quantity.
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Citations
41 Claims
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18. A method for money management in an electronic trading environment, the method comprising:
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defining a first plurality of money management filters, wherein each filter is associated with at least one filter criterion and filter condition, wherein the at least one filter criterion comprises at least a net profit level, and wherein the at least one filter condition comprises at least one maximum order quantity and maximum net position that are used to control order parameters;
entering an order to be sent to an electronic exchange, wherein the order is associated with a tradeable object;
determining a net profit level for a trader based at least in part on a trader'"'"'s net position and a current market level;
based on the net profit level, selecting a first money management filter to control order parameters associated with the order; and
modifying an order quantity associated with the order to a first maximum order quantity associated with the first selected money management filter if the order quantity is higher than the first maximum order quantity. - View Dependent Claims (1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28)
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24-1. The method of claim 23, wherein the realized profit level is determined using a following relationship:
Realized profit level=Sells−
Buys.
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29. A system for money management in an electronic trading environment, the system comprising:
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a trading application for entering an order to an electronic exchange, wherein the order is associated with a tradeable object; and
a money management application for intercepting the order before the order is sent to the exchange and dynamically determining at least one profit level based on a trader'"'"'s net position and a current market level associated with the tradeable object, and based on the at least one profit level, applying to the order a plurality of money management parameters before the order is sent to the exchange. - View Dependent Claims (30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41)
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Specification