System and Method for Money Management in Electronic Trading Environment

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.

1 . (canceled) 
     
     
         2 . A method comprising:
 receiving, via an electronic processor, an order to trade a tradeable object;   modifying, via the electronic processor, at least any one of a price and a quantity of the order according to a user-defined condition of a user-defined money management filter to generate a modified order; and   sending, via the electronic processor, the modified order to an electronic exchange.   
     
     
         3 . The method of  claim 2  where the order is being submitted to the electronic exchange to trade the quantity of the tradeable object at the price. 
     
     
         4 . The method of  claim 2  where modifying is performed in response to determining that the user-defined money management filter applies to the order prior to sending the modified order to the electronic exchange. 
     
     
         5 . The method of  claim 4  where determining that the user-defined money management filter applies to the order is based on at least any one of a trader's identifier, an exchange associated with the tradeable object, a predetermined tradeable object, a type of order, a performance of a trader, the price, an order price range, a position for a trader, a net position for a trader, a trend indicator, and a formula. 
     
     
         6 . The method of  claim 2  where the user-defined condition is associated with the user-defined money management filter. 
     
     
         7 . The method of  claim 2  where the user-defined money management filter comprises a formula based on at least any one of the quantity, profit and loss level, net position, time of day, last traded price, and a moving average. 
     
     
         8 . The method of  claim 2 , further comprising changing the quantity according to changes in trader profit and loss performance. 
     
     
         9 . The method of  claim 2 , where the user-defined condition is identified according to a trend oscillator comprising a moving average price trend oscillator. 
     
     
         10 . The method of  claim 2 , further comprising:
 monitoring a profit position of a trader to determine a maximum profit position for the trader; and   identifying the user-defined condition according to a change in the profit position from the maximum profit position for the trader.