System and Method for Automated Trading

Abstract

An automated trader facilitates automatic trading of tradeable objects over one or more electronic exchanges. According to one embodiment, an automated trader utilizes a user programmable interface. The user programmable interface allows the user to simply develop a program that is based on a set of specifications and relationships given by the user and input into a profile, or if desired, input directly into the programmable interface referred to as direct entry. For each tradeable object, a profile may be selected, and then an automated trader can execute the program to perform a series of actions according to that selected profile and directed order entry, if any. An automated trader may also be used at a communication level to create an intelligent interface between third-party trading-related applications and exchanges.

1 . (canceled) 
     
     
         2 . A computer readable medium having stored therein instructions executable by a processor, including instructions executable to:
 receive, via a user input device of an electronic trading device, a user profile defining a trading strategy for a tradeable object according to user-provided parameters;   receive, via a market input device of the electronic trading device, streaming market information for the tradeable object;   automatically continually calculate, via a processor of the electronic trading device, a value for an order price and a value for an order quantity for an order to be sent for the tradeable object, the value for the order price and the value for the order quantity being continually calculated based on the user-provided parameters and the streaming market information according to changes in market conditions as the streaming market information is received;   prior to sending the order, dynamically display, via a graphical user interface of the electronic trading device, in a scratch pad area of the graphical user interface, the value for the order price and the value for the order quantity for the order to be sent as the order price and the order quantity are continually calculated;   prior to sending the order, receive, via the graphical user interface of the electronic trading device in the scratch pad area from a user, a direct entry value, wherein the direct entry value replaces one of the value for the order price and the value for the order quantity for the order to be sent;   prior to sending the order and in response to receiving the direct entry value, stop continually calculating, via the processor of the electronic trading device, the one of the value for the order price and the value for the order quantity for the order to be sent replaced by the direct entry value;   prior to sending the order and in response to receiving the direct entry value, stop dynamically displaying, via the graphical user interface of the electronic trading device, in the scratch pad area of the graphical user interface, the one of the value for the order price and the value for the order quantity for the order to be sent replaced by the direct entry value and displaying the direct entry value in the scratch pad area;   prior to sending the order, automatically continually calculate, via the processor of the electronic trading device, the other of the value for the order price and the value for the order quantity for the order to be sent that was not the one replaced by the direct entry value;   receive, via the electronic trading device, a trigger to send the order to an electronic exchange to trade the tradeable object subsequent to receiving the direct entry value, wherein the order includes the one of the value for the order price and the value for the order quantity replaced by the direct entry value and the other value that was not the one replaced by the direct entry value; and   in response to receiving the trigger, send, via the electronic trading device, the order to the electronic exchange.   
     
     
         3 . The computer readable medium of  claim 2 , wherein the user-provided parameters include at least one of the group consisting of: variables, values, a formula, a bid offset, an ask offset, a cover order offset, a reserve offset, and a trading limit. 
     
     
         4 . The computer readable medium of  claim 3 , wherein the formula is linked to a software application. 
     
     
         5 . The computer readable medium of  claim 3 , wherein at least one of the group consisting of: the bid offset, the ask offset, the cover order offset, and the reserve offset includes a negative value. 
     
     
         6 . The computer readable medium of  claim 3 , wherein the bid offset includes a value combined with a base profile price for a price for submitting a buy order to the electronic exchange, wherein the ask offset includes a value combined with a base profile price for a price for submitting a sell order to the electronic exchange. 
     
     
         7 . The computer readable medium of  claim 3 , wherein the cover order offset includes a value combined with a base profile price for a price for submitting a cover order to the electronic exchange. 
     
     
         8 . The computer readable medium of  claim 3 , wherein the reserve offset includes a value combined with a base profile price for a price for submitting a second order when the order is filled. 
     
     
         9 . The computer readable medium of  claim 3 , wherein the trading limit includes a time period for throttling transaction messages sent to the electronic exchange. 
     
     
         10 . The computer readable medium of  claim 3 , wherein the trading limit includes a maximum position value, wherein an open position does not exceed the maximum position value. 
     
     
         11 . The computer readable medium of  claim 3 , wherein the trading limit includes at least one of the group consisting of: a bid change allowance and an ask change allowance, wherein the bid change allowance includes a range of price levels relative to the order price of the order outside of which a re-priced buy order is entered, wherein the ask change allowance includes a range of price levels relative to the order price of the order outside of which a re-priced sell order is entered. 
     
     
         12 . The computer readable medium of  claim 2 , further including instructions executable to:
 receive, via the electronic trading device, a second trigger to send a second order to the electronic exchange to trade the tradeable object; and   in response to receiving the second trigger, send, via the electronic trading device, the second order to the electronic exchange, the second order including a re-calculated price.   
     
     
         13 . The computer readable medium of  claim 12 , wherein the second order includes a cancel/replace order. 
     
     
         14 . The computer readable medium of  claim 12 , further including instructions executable to:
 send a delete transaction message to delete the order from the electronic exchange.   
     
     
         15 . The computer readable medium of  claim 2 , further including instructions executable to:
 send the order to the electronic exchange automatically.   
     
     
         16 . The computer readable medium of  claim 2 , wherein the trigger includes a manual trigger. 
     
     
         17 . The computer readable medium of  claim 2 , further including instructions executable to:
 receive the trigger via the user input device.   
     
     
         18 . The computer readable medium of  claim 2 , wherein the trigger is generated by the electronic trading device. 
     
     
         19 . The computer readable medium of  claim 2 , further including instructions executable to:
 receive a change to the trading strategy.   
     
     
         20 . The computer readable medium of  claim 19 , further including instructions executable to:
 change the trading strategy prior to receiving the trigger, wherein changing the trading strategy includes changing at least one of the user-provided parameters.   
     
     
         21 . The computer readable medium of  claim 2 , further including instructions executable to:
 select a second trading strategy to replace the trading strategy, wherein the value for the order price and the value for the order quantity are automatically calculated according to the second trading strategy.