System and method for money management in electronic trading environment

• US 8,046,283 B2
• Filed: 07/15/2010
• Issued: 10/25/2011
• 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., Brumfield, Harris
• Primary Examiner(s): Maguire; Lindsay M
• Assistant Examiner(s): Lemieux; Jessica
• Application Number:
  US12/836,766
• Publication Number:
  US 20100280938A1
• Time in Patent Office: 467 Days
• Field of Search: 705/37
• US Class Current: 705/35
• 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 trader may configure a plurality of filters, each including at least one filter criteria and filter condition. When a money management module detects a new order, the money management module intercepts the order and determines if the order matches one or more predefined filters. If the order matches one or more filters then conditions associated with the applicable filter(s) are applied to the order. The application of one or more conditions to an order may result in sending a modified order, preventing the order from reaching the exchange, or sending order to the exchange without any modifications.

Claims

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

monitoring, via a processor, orders to be submitted to an electronic exchange to trade a quantity of a tradeable object at a price to determine whether a user-defined money management filter applies to an associated order;

in response to determining that the user-defined money management filter applies to the associated order, applying, via the processor, a user-defined condition of the user-defined money management filter to the associated order to modify at least one of the price and the quantity; and

sending the associated order via the processor to the electronic exchange.

2. The method of claim 1, where determining that the user-defined money management filter applies to the associated order is based on any of a trader'"'"'s identifier, an exchange associated with the exchange-listed tradable object, a predetermined tradable object, a type of order, a performance of a trader, an order price, an order price range, a position for a trader, a net position for a trader, a trend indicator, a formula and combinations thereof.

3. The method of claim 1 where the user-defined money management filter comprises a formula.

4. The method of claim 3 where the formula is based on any of a quantity for an order, profit and loss level, net position, time of day, last traded price, a moving average, and combinations thereof.

5. The method of claim 1, further comprising determining the user-defined condition according to a trend oscillator.

6. The method of claim 5 where the user-defined condition comprises a moving average price trend oscillator.

7. The method of claim 5, further comprising modifying the user-defined condition according to the trend oscillator.

8. A non-transitory omputer readable medium having instructions stored thereon which when executed by a processor cause the processor to execute acts comprising:

monitoring orders to be submitted to an electronic exchange to trade a quantity of a tradeable object at a price to determine whether a user-defined money management filter applies to an associated order;

in response to determining that the user-defined money management filter applies to the associated order, applying a user-defined condition of the user-defined money management filter to the associated order to modify at least one of the price and the quantity; and

sending the associated order to the electronic exchange.

9. The non-transitory computer readable medium of claim 8, where determining that the user-defined money management filter applies to the associated order is based on any of a trader'"'"'s identifier, an exchange associated with the exchange-listed tradable object, a predetermined tradable object, a type of order, a performance of a trader, an order price, an order price range, a position for a trader, a net position for a trader, a trend indicator, a formula and combinations thereof.

10. The non-transitory computer readable medium of claim 8 where the user-defined money management filter comprises a formula.

11. The non-transitory computer readable medium of claim 10 where the formula is based on any of a quantity for an order, profit and loss level, net position, time of day, last traded price, a moving average, and combinations thereof.

12. The non-transitory computer readable medium of claim 8 where the acts further comprise determining the user-defined condition according to a trend oscillator.

13. The non-transitory computer readable medium of claim 12 where the user-defined condition comprises a moving average price trend oscillator.

14. The non-transitory computer readable medium of claim 12 where the acts further comprise modifying the user-defined condition according to the trend oscillator.

15. A device for money management and order submission for tradeable objects, the device comprising:

an order monitor configured to monitor orders to be submitted to an electronic exchange to trade a quantity of a tradeable object at a price to determine whether a user-defined money management filter applies to an associated order;

an order modifier configured to, responsive to the order monitor, apply a user-defined condition of the user-defined money management filter to the associated order to modify at least one of the price and the quantity in response to determining that the user-defined money management filter applies to the associated order; and

an order router configured to send the associated order to the electronic exchange.

16. The device of claim 15, where determining that the user-defined money management filter applies to the associated order is based on any of a trader'"'"'s identifier, an exchange associated with the exchange-listed tradable object, a predetermined tradable object, a type of order, a performance of a trader, an order price, an order price range, a position for a trader, a net position for a trader, a trend indicator, a formula and combinations thereof.

17. The device of claim 15 where the user-defined money management filter comprises a formula.

18. The device of claim 17, where the formula is based on any of a quantity for an order, profit and loss level, net position, time of day, last traded price, a moving average, and combinations thereof.

19. The device of claim 15, further comprising determining the user-defined condition according to a trend oscillator.

20. The device of claim 19, where the user-defined condition comprises a moving average price trend oscillator.

21. The device of claim 19, further comprising modifying the user-defined condition according to the trend oscillator.