System and method for money management using a plurality of profit levels in an electronic trading environment

• US 20060247997A1
• Filed: 05/02/2006
• Published: 11/02/2006
• Est. Priority Date: 01/31/2003
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: West, Robert A., Ziemkiewicz, Peter F., Burns, Michael J., Highland, Ryan J.
• Granted Patent: US 7,620,579 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

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.

Claims

1. A method for money management in an electronic trading environment, the method comprising:

entering an order to be sent to an electronic exchange, wherein the order is associated with a tradeable object;

determining a trader'"'"'s net profit level based at least in part on a trader'"'"'s net position associated with the tradeable object and a current market level;

based on the trader'"'"'s net profit level, determining a set of money management parameters to be used to control order parameters associated with the order; and

applying the set of money management parameters to the order before the order is sent to the exchange.

2-42. -42. (canceled)