Method and system for automated electronic trading in financial matters

• US 20040236669A1
• Filed: 04/16/2004
• Published: 11/25/2004
• Est. Priority Date: 04/18/2003
• Status: Abandoned Application

• Current Assignee: Trade Robot Limited
• Original Assignee: Trade Robot Limited
• Inventors: Horst, John Van, Papic, Josip, Sepetavc, Mitja
• Application Number:
  US10/826,877
• Publication Number:
  US 20040236669A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Automated electronic trading is provided by the cooperation of various modules that generate trade orders and transmit the trade orders to the appropriate broker platform for execution of the trades. The trade orders are generated based on trade strategies and other settings that are determined by the trader or client or combination. These tools enable a client to set up automated trading based on trade orders generated remotely by a professional trader using a vendor module to manage multiple trading strategies and market data inputs.

Claims

1. A method to facilitate automatic trading in a financial market using a vendor module with an operating trading strategy to service one or more client modules, comprising the following steps all performed in real time:

(a) receiving an input of dealing rates at the vendor module;

(b) applying the trading strategy operating in the vendor module to the dealing rates to generate trade orders; and

(c) transmitting trading information including the trade orders from the vendor module to a server module; and

(d) receiving the trading information from the server module in at least one of the client modules;

(e) the at least one of the client modules selecting one or more of the trade orders from the trading information based on predetermined client settings; and

(f) transmitting the selected trade orders from the at least one client module to a broker server for execution.

2. The method of claim 1 further comprising the steps performed by the vendor module of accessing a database of historical trading information including past dealing rates and past trade orders;

and using at least part of the historical trading information to apply the trading strategy to generate the trade orders.

3. The method of claim 1 further comprising the step of the vendor module applying predetermined vendor settings to the trading strategy for generating the trade orders.

4. The method of claim 1 further comprising the steps of

(a) the vendor module transmitting the trading information including trade orders to the broker server for execution;

(b) a website module receiving from the vendor module trading information that includes trade orders and the result of executed trade orders; and

(c) the website module formatting a display of the trade orders generated by the vendor module and result of the executed trade orders.

5. The method of claim 4 further comprising the steps of

(a) The website module receiving from the vendor module historical trading information including data showing the performance of the trading strategy;

and

(b) The website module formatting a second display of the historical trading information.

6. The method of claim 1 further comprising the following steps performed in real time by a subvendor module with a second trading strategy:

(a) receiving from the server module the trading information that includes the trade orders generated by the vendor module;

(b) receiving a streaming input of dealing rates;

(c) applying the second trading strategy to the dealing rates and the trade information to generate subvendor trade orders; and

(d) transmitting subvendor trading information including subvendor trade orders from the subvendor module to the server module.

7. The method of claim 6 further comprising the following steps preformed in real time and independently by each of one or more subclient modules serviced by the subvendor module:

(a) receiving the subvendor trading information from the server module;

(b) selecting one or more subvendor trade orders from the subvendor trading information based on predetermined subclient settings; and

(c) transmitting the selected subvendor trade orders to the broker server for execution.

8. In the method of claim 1, the client settings include one or more of the following:

(a) a default number of units to be used for each of the trade orders generated by the vendor module;

(b) a number of points that would trigger a stop in trade orders;

(c) specifying a permissible range of price discrepancy;

(d) enabling or disabling automatic transmission to the broker server of the trade orders generated by the vendor module;

(e) enabling or disabling automatic transmission to the broker server of the trade orders to buy; and

(f) enabling or disabling automatic transmission to the broker server of the trade orders to sell.

9. In the method of claim 1, the vendor module applies a plurality of trading strategies to the dealing rates to generate the trade orders and the client settings include one or more of the following:

(a) a number of units to be used for each of the trade orders generated by the vendor module based on a specific one of said plurality of trading strategies;

(b) enabling or disabling automatic transmission to the broker server of the trade orders generated by the vendor module based on a specific one of said plurality of trading strategies; and

(c) specifying a number of consecutive win transactions or consecutive loss transactions that trigger an increase or decrease in the number of units per trade order generated by the vendor module based on a specific one of said plurality of trading strategies.

10. A system for automatically generating trade orders on a vendor account and one or more client accounts, the system comprising

(a) a vendor module that uses an input of real-time dealing rates and at least one trading strategy to generate vendor trade orders for the vendor account;

(b) a server module that receives a signal representing vendor trading information including the vendor trade orders from the vendor module and transmits a signal representing the vendor trading information to one or more client modules; and

(c) each of the one or more client modules that applies its predetermined settings to the received vendor trading information to select vendor trade orders for its client account.

11. The system of claim 10 further comprising

(a) a subvendor module that receives the signal representing the vendor trading information from the server module, uses the vendor trading information along with an input of real-time dealing rates and at least one second trading strategy to generate subvendor trade orders, and transmits a signal representing subvendor trading information including the subvendor trade orders to the server module;

and

(b) one or more subclient modules that each receives the signal representing the subvendor trading information including the subvendor trading orders; and

applies its predetermined subclient settings to the received subvendor trading information to select subvendor trade orders for its subclient account.

12. The system of claim 10 further comprising the vendor module that transmits to a website module a first signal representing the vendor trade orders and a second signal representing historical trading information for the at least one trading strategy;

and the website module that receives the first signal and second signal, formats a display of the vendor trade orders, and formats a second display of the historical trading information.

13. A method for automated trading in a financial market on a client account with a remotely located broker platform comprising the steps of

(a) receiving in real-time trading information that includes trade orders generated by a remote module that applies a trading strategy to real-time dealing rates;

(b) transmitting in real-time the trade orders to the remotely located broker platform for execution on the client account.

14. The method of claim 13 further comprising the steps of

(a) applying in real-time predetermined client settings to the trading information to select from the trading information those trade orders that comport with the client settings;

and

(b) transmitting in real-time the selected trade orders to a remotely located broker platform for execution on the client account.

15. The method of claim 14 further comprising the steps of

(a) formatting a display of the trade orders and executed trade orders;

(b) receiving updated client settings; and

(c) applying in real-time the updated client settings to the trading information to select from the trading information those trade orders that comport with the updated client settings.

16. A system for automated trading in a financial market on a client account with a remotely located broker platform, the system comprising:

(a) an input for receiving real-time trading information that includes trade orders;

(b) a processor for applying predetermined client settings to the trading information to select those trades that comport with the client settings; and

(c) a transmitter for automatically sending the selected trade orders to the remotely located broker platform for execution of the selected trade orders on the client account.

17. A method for generating trade orders in a financial market, comprising the steps of:

(a) establishing access to real-time dealing rates;

(b) setting up a plurality of trading strategies;

(c) applying the plurality of trading strategies to the dealing rates to generate one or more proposed trade orders; and

(d) coordinating the proposed trade orders by suspending any of the proposed trade order that conflicts with a previously accepted trade order.

18. The method of claim 17 further comprising the step of automatically transmitting to a broker server trading information including the accepted trade orders for execution on a predetermined account.

19. A method for a vendor to service one or more clients interested in trading in financial markets comprising the steps of

(a) generating trade orders using a charting program;

(b) formatting a display accessible by the one or more clients, the display showing the trade orders;

(c) detecting execution of a trade order on a predetermined account with a broker server; and

(d) updating the display to show the executed trade and if the executed trade creates an open position to show the open position.

20. The method of claim 19 further comprising the steps of using at least one predetermined trading strategy to generate the trade orders;

storing historical trading information including the trade orders and the executed trades; and

upon request from one of the clients, formatting a second display showing the performance of the at least one trading strategy using the stored historical trading information.

21. A system for generating trade orders in a financial market comprising

(a) an input for accessing real-time dealing rates;

(b) a processor for applying a plurality of trading strategies to the dealing rates to generate one or more proposed trade orders and for coordinating the proposed trading orders by suspending any of the proposed trade orders that conflicts with a previously accepted trade order;

(c) a means for detecting execution of an accepted trade order; and

(d) a database for storing trading information including accepted trade orders and executed trade orders.