U.S. patent application number 14/197533 was filed with the patent office on 2014-07-03 for interactive user interface for input of forecasts and risk priorities and display of related strategies in a trading system.
This patent application is currently assigned to tradeMONSTER Group, Inc.. The applicant listed for this patent is tradeMONSTER Group, Inc.. Invention is credited to Aric Forsythe.
Application Number | 20140188765 14/197533 |
Document ID | / |
Family ID | 50481935 |
Filed Date | 2014-07-03 |
United States Patent
Application |
20140188765 |
Kind Code |
A1 |
Forsythe; Aric |
July 3, 2014 |
INTERACTIVE USER INTERFACE FOR INPUT OF FORECASTS AND RISK
PRIORITIES AND DISPLAY OF RELATED STRATEGIES IN A TRADING
SYSTEM
Abstract
A system for inputting a forecast and/or a risk priority and
displaying an associated strategy for a trading system comprises a
processor and a memory. The processor is configured to receive an
indication of a forecast for an underlying investment and/or an
indication of a risk priority. The processor is configured to
display and/or cause the display of the probability band and/or a
list of risk priorities. The processor is further configured to
determine a probability band based at least in part on the forecast
and display or cause a display of one or more strategies compatible
with the forecast or to determine an ordered list of risk
priorities and display or cause a display of one or more strategies
compatible with the ordered list. The memory is coupled to the
processor and configured to provide the processor with
instructions.
Inventors: |
Forsythe; Aric; (Chicago,
IL) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
tradeMONSTER Group, Inc. |
Chicago |
IL |
US |
|
|
Assignee: |
tradeMONSTER Group, Inc.
Chicago
IL
|
Family ID: |
50481935 |
Appl. No.: |
14/197533 |
Filed: |
March 5, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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12655079 |
Dec 21, 2009 |
8706597 |
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14197533 |
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Current U.S.
Class: |
705/36R |
Current CPC
Class: |
G06Q 40/06 20130101;
G06Q 40/00 20130101 |
Class at
Publication: |
705/36.R |
International
Class: |
G06Q 40/06 20120101
G06Q040/06 |
Claims
1. A system for displaying a trading strategy, the system
comprising: a processor configured to: determine, for an underlying
investment, a plurality of percentages, each of which is associated
with one of a plurality of dates subsequent to the determination
and being indicative of a probability of the underlying investment
being priced at one of a plurality of prices upon the occurrence of
the associated one of the plurality of subsequent dates; cause a
display of the determined plurality of percentages; receive, from a
user, a selection of at least one of the displayed plurality of
percentages, the selection being based on a user's forecast of the
underlying investment being priced at a price indicated by the
selection on the date indicated by the selection; generate one or
more strategies compatible with the price and date indicated by the
selection; cause a display of the generated one or more strategies;
and a memory coupled to the processor and configured to provide the
processor with instructions.
2. A system as in claim 1, wherein the selection of at least one of
the displayed plurality of percentages further comprises a
selection of a plurality of the displayed plurality of percentages
associated with a range of the plurality of prices, over one or
more dates, at which the underlying investment is expected to be
at.
3. A system as in claim 1, wherein the selection of at least one of
the displayed plurality of percentages further comprises a
selection of a plurality of the displayed plurality of percentages
associated with a range of the plurality of prices, over one or
more dates, at which the underlying investment is not expected to
be at.
4. A system as in claim 1, wherein the processor is further
configured to present a user interface comprising the display of
the determined plurality of percentages, the user interface further
being operative to receive the selection from the user via the
display of the determined plurality of percentages.
5. The system as in claim 1, wherein the determined plurality of
percentages are displayed on a price vs. date graph, each of the
determined plurality of percentages being displayed as one or more
colored pixels, the color being associated with the percentage
value thereof.
6. The system as in claim 1, wherein the underlying investment is
characterized by an implied volatility value, the determination of
the plurality of percentages being based thereon.
7. The system as in claim 1, wherein the processor is further
configured to cause the display of the determined plurality of
percentages juxtaposed with data indicative of a price of the
underlying investment at a plurality of dates prior to the
determination of the plurality of percentages.
8. The system as in claim 1, wherein the generation of the one or
more strategies is based on one of a look up table, an algorithm or
a model.
9. A system as in claim 1, wherein the processor is further
configured to receive, from the user, a selection of an existing
position to include in the one or more strategies.
10. A system as in claim 9, wherein the processor is further
configured to display an adjustment trade, based on the selected
existing position, operative to achieve at least one of the one or
more strategies.
11. A system as in claim 1, wherein the processor is further
configured to: receive an indication of an order of one or more
risk priorities; determine an ordered list of the one or more
strategies based on the received order; cause a display of the
ordered list; and cause a display of the one or more strategies
further compatible with the ordered list.
12. A system as in claim 11, wherein one of the one or more risk
priorities comprises one of targeting maximizing potential market
gain, targeting minimizing potential loss, targeting maximizing
odds of profitability, targeting maximizing potential percent
market gain, .
13. A system as in claim 11, wherein the indication of the order
comprises dragging and dropping one of the one or more risk
priorities.
14. A system as in claim 1, wherein the processor is further
configured to receive an indication to select one of the one or
more strategies, wherein the selection enables a user to perform
one or more of the following: edit, analyze, or trade the selected
strategy.
15. A computer implemented method for displaying a trading
strategy, the method comprising: determining, by a processor for an
underlying investment, a plurality of percentages, each of which is
associated with one of a plurality of dates subsequent to the
determination and being indicative of a probability of the
underlying investment being priced at one of a plurality of prices
upon the occurrence of the associated one of the plurality of
subsequent dates; causing, by the processor, a display of the
determined plurality of percentages; receiving, by the processor
from a user, a selection of at least one of the displayed plurality
of percentages, the selection being based on a user's forecast of
the underlying investment being priced at a price indicated by the
selection on the date indicated by the selection; generating, by
the processor, one or more strategies compatible with the price and
date indicated by the selection; and causing, by the processor, a
display of the generated one or more strategies.
16. A computer implemented method as in claim 15, wherein the
selection of at least one of the displayed plurality of percentages
further comprises a selection of a plurality of the displayed
plurality of percentages associated with a range of the plurality
of prices, over one or more dates, at which the underlying
investment is expected to be at.
17. A computer implemented method as in claim 15, wherein the
selection of at least one of the displayed plurality of percentages
further comprises a selection of a plurality of the displayed
plurality of percentages associated with a range of the plurality
of prices, over one or more dates, at which the underlying
investment is not expected to be at.
18. A computer implemented method as in claim 15, further
comprising presenting, by the processor, a user interface
comprising the display of the determined plurality of percentages
and receiving, by the processor, the selection from the user via
the display of the determined plurality of percentages.
19. The computer implemented method as in claim 15, further
comprising displaying the determined plurality of percentages on a
price vs. date graph, each of the determined plurality of
percentages being displayed as one or more colored pixels, the
color being associated with the percentage value thereof.
20. The computer implemented method as in claim 15, wherein the
underlying investment is characterized by an implied volatility
value, the determination of the plurality of percentages being
based thereon.
21. The computer implemented method as in claim 15, further
comprising causing, by the processor, the display of the determined
plurality of percentages juxtaposed with data indicative of a price
of the underlying investment at a plurality of dates prior to the
determination of the plurality of percentages.
22. The computer implemented method as in claim 15, wherein the
generation of the one or more strategies is based on one of a look
up table, an algorithm or a model.
23. A computer implemented method as in claim 15, further
comprising receiving, by the processor from the user, a selection
of an existing position to include in the one or more
strategies.
24. A computer implemented method as in claim 23, further
comprising displaying an adjustment trade, based on the selected
existing position, operative to achieve at least one of the one or
more strategies.
25. A computer implemented method as in claim 15, further
comprising: receiving, by the processor, an indication of an order
of two or more risk priorities; determining, by the processor, an
ordered list based on the received order; causing, by the
processor, a display of the ordered list; and causing, by the
processor, a display of the one or more strategies further
compatible with the ordered list.
26. A computer implemented method as in claim 25, wherein one of
the one or more risk priorities comprises one of targeting
maximizing potential market gain, targeting minimizing potential
loss, targeting maximizing potential profitability, targeting
maximizing potential percent market gain.
27. A computer implemented method as in claim 25, wherein the
indication of the order comprises dragging and dropping one of the
one or more risk priorities.
28. A computer implemented method as in claim 15, further
comprising receiving an indication to select one of the one or more
strategies, wherein the selection enables a user to perform one or
more of the following: edit, analyze, or trade the selected
strategy.
29. A non-transitory computer readable storage medium comprising
computer instructions for: determining, for an underlying
investment, a plurality of percentages, each of which is associated
with one of a plurality of dates subsequent to the determination
and being indicative of a probability of the underlying investment
being priced at one of a plurality of prices upon the occurrence of
the associated one of the plurality of subsequent dates; causing a
display of the determined plurality of percentages; receiving, from
a user, a selection of at least one of the displayed plurality of
percentages, the selection being based on a user's forecast of the
underlying investment being priced at a price indicated by the
selection on the date indicated by the selection; generating one or
more strategies compatible with the price and date indicated by the
selection; and causing a display of the generated one or more
strategies.
30. The non-transitory computer readable storage medium as in claim
29 further comprising computer instructions for: receiving an
indication of an order of two or more risk priorities; determining
an ordered list based on the received order; causing a display of
the ordered list; and causing the display of the one or more
strategies further compatible with the ordered list.
Description
REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation under 37 C.F.R.
.sctn.1.53(b) of U.S. patent application Ser. No. 12/655,079 filed
Dec. 21, 2009 (Attorney Docket No. 10202/12013AUS) now U.S. Pat.
No. ______, the entire disclosure of which is hereby incorporated
by reference
BACKGROUND
[0002] In systems that search live market data for option
strategies it is difficult to quickly and easily capture both the
diversity and exactness of inputs needed for the trader to conduct
a meaningful search against data changing in real time and act on
the resulting output.
BRIEF DESCRIPTION OF THE DRAWINGS
[0003] Various embodiments of the invention are disclosed in the
following detailed description and the accompanying drawings.
[0004] FIG. 1 is a screen shot illustrating an embodiment of the
StrategySEEK module.
[0005] FIG. 2A is a screen shot illustrating an embodiment of the
Forecast component of the StrategySEEK module showing a "Price"
type of forecast.
[0006] FIG. 2B is a screen shot illustrating an embodiment of the
Forecast component of the StrategySEEK module showing an "In Range"
type of forecast.
[0007] FIG. 2C is a screen shot illustrating an embodiment of the
Forecast component of the StrategySEEK module showing an "Outside
Range" type of forecast.
[0008] FIG. 3 is a screen shot illustrating an embodiment of the
Risk Priorities component of the StrategySEEK module.
[0009] FIG. 4 is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module before strategies are
generated and displayed.
[0010] FIG. 5A is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module after strategies are
generated and displayed.
[0011] FIG. 5B is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module after strategies are
generated and displayed and the user has elected to include an
existing position.
[0012] FIG. 5C is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module after strategies are
generated and displayed and the user has elected to include an
existing position.
[0013] FIG. 6 is a screen shot illustrating an embodiment of a drop
down menu for changing the implied volatility used in a
forecast.
[0014] FIG. 7 is a screen shot illustrating an embodiment of a tool
tip that displays when the user rolls over a point in future time
on the chart.
[0015] FIG. 8 is a screen shot illustrating an embodiment of the
Risk Priorities component of the StrategySEEK module where the user
is adjusting the order of the priorities.
[0016] FIG. 9 is a screen shot illustrating an embodiment of a
strategy editing tool invoked from a strategy generated by and
displayed in the StrategySEEK module.
[0017] FIG. 10 is a screen shot illustrating an embodiment of a
strategy analysis tool.
[0018] FIG. 11 is a screen shot illustrating an embodiment of an
order ticket for placing a trade invoked from a strategy generated
by and displayed in the StrategySEEK module.
[0019] FIG. 12 is a screen shot illustrating an embodiment of an
action menu invoked from a quote from which the user can launch the
StrategySEEK module.
[0020] FIG. 13 is a screen shot illustrating an embodiment of an
action menu invoked from a position from which the user can launch
the StrategySEEK module.
[0021] FIG. 14 is a diagram illustrating an embodiment of the high
level parts of the trading system.
[0022] FIG. 15 is a flow diagram illustrating an embodiment of the
high level components of the trading system.
[0023] FIG. 16 is a flow diagram illustrating an embodiment of the
process of using StrategySEEK to enter a forecast and act on
generated strategies.
DETAILED DESCRIPTION OF THE DRAWINGS AND PRESENTLY PREFERRED
EMBODIMENTS
[0024] The invention can be implemented in numerous ways, including
as a process; an apparatus; a system; a composition of matter; a
computer program product embodied on a computer readable storage
medium; and/or a processor, such as a processor configured to
execute instructions stored on and/or provided by a memory coupled
to the processor. In this specification, these implementations, or
any other form that the invention may take, may be referred to as
techniques. In general, the order of the steps of disclosed
processes may be altered within the scope of the invention. Unless
stated otherwise, a component such as a processor or a memory
described as being configured to perform a task may be implemented
as a general component that is temporarily configured to perform
the task at a given time or a specific component that is
manufactured to perform the task. As used herein, the term
`processor` refers to one or more devices, circuits, and/or
processing cores configured to process data, such as computer
program instructions.
[0025] A detailed description of one or more embodiments of the
invention is provided below along with accompanying figures that
illustrate the principles of the invention. The invention is
described in connection with such embodiments, but the invention is
not limited to any embodiment. The scope of the invention is
limited only by the claims and the invention encompasses numerous
alternatives, modifications and equivalents. Numerous specific
details are set forth in the following description in order to
provide a thorough understanding of the invention. These details
are provided for the purpose of example and the invention may be
practiced according to the claims without some or all of these
specific details. For the purpose of clarity, technical material
that is known in the technical fields related to the invention has
not been described in detail so that the invention is not
unnecessarily obscured.
[0026] A system for inputting a forecast or an order for one or
more risk priorities is disclosed. In some embodiments, the system
receives an indication of a forecast for an underlying investment,
determines a probability band based at least in part on the
forecast, causes a display of the probability band (e.g., a display
of the probability band on a monitor or display of a computing
device), and causes a display of one or more strategies compatible
with the forecast. In some embodiments, the system receives an
indication of an order for one or more risk priorities, determines
an ordered list based on the received order, causes a display of
the ordered list, and causes a display of one or more strategies
compatible with the ordered list.
[0027] In some embodiments, the system comprises a tool,
StrategySEEK, that enables the trader to input a forecast and
prioritize the types of risk/reward characteristics most acceptable
to the trader for an underlying security and automatically derive
and display strategies related to that forecast. The trader can
then act on a strategy to edit, analyze or trade the strategy.
StrategySEEK facilitates entering a forecast via a price chart in
one of several forms, including the underlying going to a
particular price by a particular future date, the underlying being
in a price range on a particular future date and the underlying
being outside of a price range on a particular future date. The
chart enhances input of the forecast parameters by displaying a
range of future dates overlaid with probability bands that express
the probability of the underlying being in each band. The future
portion of the chart is juxtaposed to a price history which allows
the trader to visualize trends and patterns and draw lines
reflecting those trends or patterns. The forecast also allows the
trader to input an implied volatility forecast. Forecast parameters
can be entered with just a few clicks and can be tuned using a set
of controls juxtaposed to a price chart, making forecast entry
simple but exact. Risk priorities are also part of the forecast and
can be selected from a list and then arranged in order of most
critical to least critical. With the click of a button the system
generates a list of strategies for the user to choose from. If the
user has an existing position in the selected underlying security
they are given the option to include that position in determining
what trade to make that will result in the strategy they have
selected. If they have multiple strategies the system displays a
dialog for the user to choose which strategy to make the starting
strategy. The adjustment trade that will change the starting
strategy into the selected strategy is displayed.
[0028] In some embodiments, StrategySEEK is executed by first
clicking a quote or a position strategy to get an Action Menu then
on the menu clicking the button for "Strategy." The StrategySEEK
dialog will appear and the user may enter a forecast and display
strategies related to the forecast. The user may then select a
strategy and take actions on the strategy including editing the
strategy, analyzing the strategy and trading the strategy.
[0029] FIG. 1 is a screen shot illustrating an embodiment of the
StrategySEEK module. In the example shown, StrategySEEK is used to
specify a forecast and a set of risk priorities and display related
strategies including option strategies such that actions can be
taken on the strategies such as analyzing a strategy, editing a
strategy or placing an order for a strategy. Window 100 comprises
the display for the whole module shown in a state where no
strategies have been generated. Tab 101 enables a user to access
the Quote screen for the underlying. Tab 102 enables a user to
access the chart screen for the underlying. Tab 103 enables a user
to access the option chain for the underlying. Tab 104, which is
selected in the diagram, enables a user to access the StrategySEEK
module for the underlying. Value 105 is the Bid for the underlying.
Value 106 is the Ask for the underlying. Value 107 is the Bid Size
and Ask Size associated with the Bid and Ask values. Value 108 is
the Volume for the underlying. Symbol 109 is the underlying symbol,
which the user can change by typing it or using a drop down to
select a new symbol. Expander icon 110 is used to get more detailed
quote information on the underlying. Color indicator 111 uses color
to convey how much the underlying is up or down on the day. Value
112 is the Last trade value for the underlying. Value 113 is the
Mark Change for the day for the underlying. Value 114 is the Mark %
Change for the day for the underlying. Component 115 is the
Forecast component of the StrategySEEK module. This component is
where the user enters a forecast for the underlying security which
will be used as an input for determining strategies. In some
embodiments, the details of the input mechanism correspond to the
details described in FIG. 2A. Component 116 is the Risk Priorities
component of the StrategySEEK module. This component is where the
user enters the risk priorities which will be used as inputs to
determine strategies. In some embodiments, the details of inputting
risk priorities correspond to the details described in FIG. 3.
Component 117 is the Strategy component of the StrategySEEK module.
This component is where the strategies will be displayed that match
the user's forecast and desired priorities. In various embodiments,
the details of strategy display correspond to the details shown in
FIGS. 4 and 5A; FIG. 5A shows the state of this component after
strategies have been generated and are displayed in the
component.
[0030] FIG. 2A is a screen shot illustrating an embodiment of the
Forecast component of the StrategySEEK module showing a "Price"
type of forecast. In the example shown, drop down 201 is used to
display trendlines on the chart. Button 202 enables a user to
invoke a dialog to display overlays such as earnings announcement
dates on the chart. Drop down 203 enables a user to specify the
type of forecast the user wishes to make, including a price
forecast where the user predicts the underlying will reach a
particular price, a range forecast where the user predicts the
underlying will stay within a price range and an out-of-range
forecast where the user predicts a range the underlying will not
end up in. Legend 204 is the legend of a color coding scheme for
creating colored probability bands for the future area of the chart
that show visually the probability of the underlying being in
certain price areas on certain dates. Drop down 205 enables the
user to select or enter an implied volatility as part of the
forecast. Button 206 allows the user to increase the vertical scale
of the chart. Button 207 allows the user to decrease the time span
of the chart. Title 208 is the title of the component. Text 209
comprises instructions for the user for specifying forecast
parameters. Drop down 210 enables a user to change the chart style.
The cursors in 211 enables a user to draw and select trendlines on
the chart. Marker 212 comprises the price chart, which includes a
price history juxtaposed to a range of future dates with
probability bands displayed where the bands indicate using color
the probability the underlying will be in particular price and time
areas. Marker 213 indicates the display of price data, in this
example the style is a candle chart. Scale 214 indicates the time
frame on the horizontal axis. Line 215 indicates the price of the
user's forecast. Probability band 216 indicates the area where the
underlying has a 1% to 5% chance of ending up. Probability band 217
indicates the area where the underlying has a 5% to 20% chance of
ending up. Probability band 218 indicates the area where the
underlying has a 20% to 40% chance of ending up. Probability band
219 indicates the area where the underlying has a 40% to 50% chance
of ending up. Control 220 enables a user to adjust the date
selection. Spinner 221 enables a user to make small adjustments to
the date selection. Field 222 displays the selected date and can be
edited. Drop down 223 allows the user to select from popular dates
for the forecast. Tactile area 224 allows the user to grab and drag
the control using the mouse to adjust the date. Line 225 indicates
the date of the user's forecast. Scale 226 indicates the price
scale of the chart. Control 227 enables a user to adjust the price
selection. Tactile area 228 allows the user to grab and drag the
control using the mouse to adjust the date. Spinner 229 enables a
user to make small adjustments to the price selection. Field 230
displays the selected date and can be edited. Drop down 231 allows
the user to select from popular dates for the forecast.
[0031] FIG. 2B is a screen shot illustrating an embodiment of the
Forecast component of the StrategySEEK module showing an "In Range"
type of forecast. In the example shown, drop down 232 displays the
forecast type, which is "In Range". Bar 233 displays visually the
price range of the forecast on the chart. Control 234 enables a
user to specify the date for the forecast. Control 235 enables a
user to specify the upper bound of the price of the forecast.
Control 236 enables a user to specify the lower bound of the price
of the forecast.
[0032] FIG. 2C is a screen shot illustrating an embodiment of the
Forecast component of the StrategySEEK module showing an "Outside
Range" type of forecast. In the example shown, drop down 237
displays the forecast type, which is "Outside Range". Bar 238
displays visually the upper area of the price forecast on the
chart. Bar 239 displays visually the lower area of the price
forecast on the chart. Control 240 enables a user to specify the
date for the forecast. Control 241 enables a user to specify the
upper area of the price forecast. Control 242 enables a user to
specify the lower area of the price forecast.
[0033] FIG. 3 is a screen shot illustrating an embodiment of the
Risk Priorities component of the StrategySEEK module. In the
example shown, window 300 comprises the display for the whole Risk
Priorities component. Text 301 indicates the title "Priorities" of
the component. Text 302 comprise instructions for the user to
arrange the risk preferences in the desired order. Button 303
allows the user to toggle on and off the "Profit" risk priority.
Button 304 allows the user to toggle on and off the "Safety" risk
priority. Bar 305 represents the "Profit" risk priority and can be
repositioned relative to the other bars (see Markers 306, 307,
308). Bar 306 represents the "Safety" risk priority and can be
repositioned relative to the other bars (see Markers 305, 307,
308). Bar 307 represents the "Probability" risk priority and can be
repositioned relative to the other bars (see Markers 305, 306,
308). Bar 308 represents the "Return" risk priority and can be
repositioned relative to the other bars (see Markers 305, 306,
307). Button 309 allows the user to toggle on and off the
"Probability" risk priority. Button 310 allows the user to toggle
on and off the "Return" risk priority.
[0034] FIG. 4 is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module before strategies are
generated and displayed. In the example shown, Marker 400 indicates
the display for the entire Strategy component. Text 401 is the
title of the component. Button 402 comprises a button that enables
a user to generate and display strategies based on the entered
forecast and risk priorities. Box 403 is the area the strategies
will display in. Check box 404 enables the user to include the legs
or component instruments of an existing position as part of the
legs needed to get to the net suggested strategy. Text 405 is the
explanatory text for the check box control.
[0035] FIG. 5A is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module after strategies are
generated and displayed. In the example shown, marker 500 indicates
the entire Strategy component. Text 501 is the title of the
component. Text 502 is the instruction line for the user as to how
to view strategies. Strategy 503 is the detailed description of the
strategy that is selected in the list of strategies. The
description indicates a "Buy" order where the quantity is "5" and
the expiration is "January 12" or January of 2012 and the strike
prices are "22.5" and "25.0" and the type of strategy is a "Call
Vertical" strategy. Markers 504 and 505 indicate the legs or
component instruments of the strategy. Description 504 indicates a
"Buy" order where the quantity is "5" and the expiration is
"January 12" or January of 2012 and the strike price is "22.5" and
the option symbol is "WGEAZ" and the type of option is a "Call" and
the "to Open" indicates an opening transaction. Description 505
indicates a "Sell" order where the quantity is "5" and the
expiration is "January 12" or January of 2012 and the strike price
is "25.0" and the option symbol is "WGEAJ" and the type of option
is a "Call" and the "to Open" indicates an opening transaction.
Check box 506 enables the user to include the legs or component
instruments of an existing position as part of the legs needed to
get to the net suggested strategy. Text 507 is the explanatory text
for the check box control. Strategies 508, 509 and 510 are the
strategies generated by the StrategySEEK module for this example.
In various embodiments, strategies are generated using a table look
up, using an algorithm, using risk priorities, using a forecast,
using a volatility, using a model, or any other appropriate manner
of generating a strategy. Strategy 508 is currently selected with
its details shown in Markers 503, 504 and 505. Area 511 is the area
for displaying the list of generated strategies. Buttons 512, 513
and 514 enable the user to take action on the selected strategy,
which for this example is the "Call Vertical" shown in Marker 508.
Button 512 enables the user to navigate to a tool for analyzing the
strategy. Button 513 enables the user to edit the strategy. Button
514 enables the user to place an order for the strategy.
[0036] FIG. 5B is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module after strategies are
generated and displayed and the user has elected to include an
existing position. In the example shown, marker 515 indicates the
selected strategy, a Call Vertical. Check box 516 has been selected
by the user in order to include an existing position to achieve the
net set of legs in the selected strategy which is a Call Vertical.
Marker 517 indicates the Starting Strategy which is the held
position. The starting strategy is a long call position with
quantity "+2" and expiration "January 10" and strike price "20.0"
and the type of option is a "call" option. Marker 518 indicates the
Adjustment which is the trade needed to go from the held position
or Starting Strategy to the selected Call Vertical strategy which
will be the Adjusted Strategy once the trade is made. The
Adjustment is a Custom Spread consisting of three legs. The first
leg is selling 2 January 2010 20.0 strike calls which will close
the current position. The next two legs are the purchase of the
Call Vertical, which consists of buying the January 2012 22.5
strike call (quantity 5) and selling the January 2012 25.0 strike
call (quantity 5). Button 519 enables a user to to analyze the
Adjustment trade. Button 520 enables a user to edit the Adjustment
trade. Marker 521 indicates the Adjusted Strategy which will result
once the Adjustment trade fills. The Adjusted Strategy is the
January 2012 Call Vertical with strike prices 22.5 and 25.0 which
was the strategy the user selected from the list of generated
strategies (see FIG. 5A, Marker 503). Button 522 is for creating
the order for the Adjustment trade.
[0037] FIG. 5C is a screen shot illustrating an embodiment of the
Strategy component of the StrategySEEK module after strategies are
generated and displayed and the user has elected to include an
existing position. In the example shown, the user can choose via
dialog 524 from several existing positions. Check box 523 has been
selected by the user in order to include an existing position to
achieve the net set of legs in the selected strategy which is a
Call Vertical. Dialog 524 displays in the event that the user has
more than one existing position. Color indicator 525 shows whether
the underlying is up or down on the day. Symbol 526 is the
underlying symbol. Instruction 527 tells the user to select the
desired Starting Strategy. Radio button 528 shows the selected
existing position to use as the Starting Strategy. Radio buttons
529 and 530 show other existing positions that could be chosen
instead of the position in 528. Button 531 enables a user to cancel
the dialog with no action being taken. Button 532 enables a user to
confirm the user's selection to include an existing position.
Button 533 enables a user to close the dialog without taking
action. Button 534 enables a user to accessing help related to this
dialog.
[0038] FIG. 6 is a screen shot illustrating an embodiment of a drop
down menu for changing the implied volatility used in a forecast.
In the example shown, marker 600 indicates the Forecast component
of the StrategySEEK module. Marker 601 indicates the drop down
enabling a user to specify an implied volatility for the user's
forecast. Marker 602 indicates the contents of the drop down which
include a set of popular implied volatility values as well as the
capability for the user to enter a custom value.
[0039] FIG. 7 is a screen shot illustrating an embodiment of a
rollover tool tip for indicating the probability of the underlying
security being above or below a certain price. In the example
shown, marker 700 indicates the Forecast component of the
StrategySEEK module. Marker 701 indicates the user's cursor rolling
over a future point in time on the price chart. Mapped onto the
future points in time are probability bands which represent a range
of percentages that the underlying price will end up at that level
on that date. Marker 702 indicates the contents of the tool tip
which for this example show the user's cursor is at the point on
the chart for the date of 10/01/201 and an underlying price of
28.73. The probability shown of the underlying security being at
28.73 or above 28.73 on the date Oct. 1, 2010 is 2.36%. Should the
user's cursor be below the current underlying price on the chart,
the probability displayed is interpreted as "at or below" the
current price.
[0040] FIG. 8 is a screen shot illustrating an embodiment of the
Risk Priorities component of the StrategySEEK module where the user
is adjusting the order of the priorities. In the example shown,
marker 800 indicates the Risk Priorities component of the
StrategySEEK module. Marker 801 indicates a bar that represents the
"Probability" risk factor which is being moved from priority number
3 to priority number 2. Cursor 802 enables a user to move the
priority bars. Arrow 803 indicates the upward motion of the cursor,
moving the "Probability" bar upward in rank order. Bar 804 is the
bar that represents the "Safety" risk factor which is automatically
moving downward as indicated by arrow 805 as the user moves the
"Probability" bar upward.
[0041] FIG. 9 is a screen shot illustrating an embodiment of a
strategy editing tool invoked from a strategy generated by and
displayed in the StrategySEEK module. For example, the user could
click button 513 in FIG. 5A to invoke the dialog in FIG. 9. In the
example shown, marker 900 indicates the strategy editing dialog.
Color indicator 901 shows how much the underlying is up or down on
the day. Symbol 902 is the underlying symbol for the strategy.
Action 903 is the Buy or Sell action for the first leg of the
strategy. Field 904 holds the quantity for the first leg. Drop down
905 selects the expiration of the first leg. Drop down 906 selects
the strike price of the first leg. Text 907 is the option symbol
for the first leg. Text 908 is the option symbol for the second
leg. Icon 909 enables a user to remove the first leg by clicking on
icon 909. Icon 910 enables a user to remove the second leg by
clicking on icon 910. There can be up to four legs, the example
shown has two. Legend 911 is the legend for the risk profile chart,
which plots strategy values vs. underlying values for the current
time and for expiration. Quote 912 is a current quote for the
underlying. Icon 913 enables a user to share information on this
strategy on the social networking site Twitter. Icon 914 is to
access help for this dialog. Icon 915 enables a user to close the
window without taking any action. Text 916 is the name of the
underlying. Action 917 is the Buy or Sell action for the second leg
of the strategy. Field 918 holds the quantity for the second leg.
Drop down 919 enables a user to select the expiration of the second
leg. Drop down 920 enables a user to select the strike price of the
second leg. Button 921 enables a user to add a call as an
additional leg to the strategy. Button 922 enables a user to add
stock as an additional leg to the strategy. Button 923 enables a
user to add a put as an additional leg to the strategy. Text-value
pair 924 displays the mark price of the strategy. Text-value pair
925 displays the change in price of the strategy from the prior
close. Button 926 enables the user to abandon the spread in this
dialog and select a new type of spread. Text-value pair 927 is the
current Bid of the strategy. Text-value pair 928 is the current Ask
of the strategy. Button 929 invokes the Analysis tools which enable
the user to analyze the strategy. Text-value pair 930 is the
quantity of the spread. Scale 931 is the series of underlying
prices on the horizontal axis of the risk profile chart. Button 932
allows the user to create an order for the strategy. Scale 933
shows values of the strategy on the vertical axis of the risk
profile chart.
[0042] FIG. 10 is a screen shot illustrating an embodiment of the
Analysis module. In some embodiments, the user invokes the analysis
module from a strategy displayed in the StrategySEEK module (e.g.,
by clicking button 512 in FIG. 5A). Marker 1000 indicates the
Analysis module. Indicator 1001 is a color indicator which
represents how much the underlying is up or down on the day. Symbol
1002 is the underlying symbol for the strategy being analyzed.
Description 1003 indicates a "Trade" where the quantity is "5" and
the underlying symbol is "GE" and the expiration is "January 12" or
January of 2012 and the strike prices are "22.5" and "25.0" and the
type of strategy is a "Call Vertical" and the mark price is "0.43".
Tab 1004 displays the Snapshot Analysis screen while tab 1006
displays the Spectral Analysis screen. Quote 1007 is a current
quote for the underlying security. Text 1008 indicates the dialog
houses a set of tools called tradeLAB.TM.. Icon 1009 enables a user
to access help for this module. Icon 1010 enables a userclose the
window without taking action. Indicator 1011 is a color indicator
that shows how much the strategy is up or down on the day. Expander
1012 allows the user to see the individual legs that make up the
strategy. Text 1013 indicates the Risk/Reward parameters.
Illustrative icon 1014 indicates the profit information.
Illustrative icon 1015 indicates the loss information. Illustrative
icon 1016 indicates the break even information. Illustrative icon
1017 indicates the risk/reward ratio. Text 1018 indicates the list
of key events. Text-value pair 1019 is the Expiration date of the
strategy. Text-value pair 1020 is the date of the Next Earnings
announcement. Text-value pair 1021 is the date of the Next
Dividend. Button 1022 enables a user to edit the strategy.
Text-value pair 1023 shows the Maximum Profit for the strategy.
Text-value pair 1024 shows the Probability for Maximum Profit for
the strategy. Text-value pair 1025 shows the Maximum Loss for the
strategy. Text-value pair 1026 shows the Probability for Maximum
Loss for the strategy. Text-value pair 1027 shows the Break Even
for the strategy. Text-value pair 1028 shows the Probability for
Any Profit for the strategy. Text-value pair 1029 shows the
Risk/Reward ratio for the strategy. Text 1030 shows the title for
the Risk Profile graph. Chart 1031 is the Risk Profile graph, which
maps values of the strategy to values of the underlying at both
expiration (heavy line) and for the current time (lighter line).
Scale 1032 shows the range of strategy prices on the chart. Scale
1033 show the range of underlying prices on the chart. Button 1034
shows the Create Order button from which the user can create an
order for the strategy.
[0043] FIG. 11 is a screen shot illustrating an embodiment of an
Order Ticket. In some embodiments, the user invokes an order ticket
from a strategy displayed in the StrategySEEK module (e.g., by
clicking button 514 in FIG. 5A). In the example shown, marker 1100
indicates the Order Ticket. Indicator 1101 is a color indicator
which represents how much the strategy is up or down on the day.
Marker 1102 is the name of the strategy, in this example a GE
Vertical where GE is the underlying symbol and Vertical is the type
of strategy. Icon 1103 enables a user to share information about
this strategy on the social networking site Twitter. Icon 1104
enables a user to access help for the Order Ticket. Icon 1105
enables a user to close the window without taking any action. Text
1106 is the title of the Order Ticket. Action 1107 shows the order
is to Buy the spread. Field 1108 enables a user to specify the
quantity. Selection 1109 indicates the order type which is a
"Limit" order. Field 1110 holds the Limit Price. Indicator 1111
displays the Bid-Ask range and where the limit price falls in that
range. Drop down 1112 enables a user to elect any desired Trade
Automation criteria for the order. Drop down 1113 enables a user to
select the Time in Force or how long the order will be good for.
Icon and text 1114 tells the user if the spread is a net debit or
credit to the account. Button 1115 allows the user to save the
order. Button 1116 enables a userto invoke the Analysis tools to
analyze the order. Button 1117 enables the user to edit the spread.
Drop down 1118 enables the user to select special handling for the
order. Button 1119 enables a user to confirm the order so it can be
placed. Account number 1120 displays the account the order will be
placed in. Strategy 1121 is the detailed description of the
strategy that is selected in the list of strategies. The
description indicates a "Buy" order where the quantity is "5" and
the expiration is "January 12" or January of 2012 and the strike
prices are "22.5" and "25.0" and the type of strategy is a "Call
Vertical" strategy. Markers 1122 and 1123 indicate the legs or
component instruments of the strategy. Description 1122 indicates a
"Buy" order where the quantity is "5" and the expiration is
"January 12" or January of 2012 and the strike price is "22.5" and
the option symbol is "WGEAZ" and the type of option is a "Call" and
the "to Open" indicates an opening transaction. Description 1123
indicates a "Sell" order where the quantity is "5" and the
expiration is "January 12" or January of 2012 and the strike price
is "25.0" and the option symbol is "WGEAJ" and the type of option
is a "Call" and the "to Open" indicates an opening transaction.
Icon 1124 shows an idealized profile chart of the payoff of the
call vertical strategy vs. the price of the underlying
security.
[0044] FIG. 12 is a screen shot illustrating an embodiment of an
action menu invoked from a quote from which the user can launch the
StrategySEEK module. In the example shown, marker 1200 indicates
the Action Menu. Color indicator 1201 shows how much the security
is up or down on the day. Symbol 1202 is the security symbol, in
the example shown it is the stock symbol for General Electric
stock. Text-value pair 1203 is the Ask. Text-value pair 1204 is the
Bid. Icon 1205 enables a user to share information about this
security via the social networking site Twitter. Button 1206
enables a user to set an alert on the security. Icon 1207 enables a
userto access help for this Action Menu. Icon 1208 enables a user
to close the window without taking any action. Text 1209 is the
description of the security. Text-value pair 1210 is the Last price
the security traded at. Text-value pair 1211 is how much the
security has changed in price vs. the prior close. Text-value pair
1212 is the price percentage change of the security vs. the prior
close. Text-value pair 1213 is the Volume that has traded for the
current day. Text-Value pair 1214 is the Bid Size. Text-value pair
1215 is the Ask Size. Button 1216 enables a user to invoke a tool
that creates a spread for the security on this Action Menu. Button
1217 enables a user to create an order ticket to Buy the security.
Button 1218 enables a user to create an order ticket to Sell the
security. Quote 1219 is a current quote for the security. Icon 1220
enables a user to get detailed Quote information on the security.
Icon 1221 enables a user to display a Chart for the security. Icon
1222 enables a user to display an Option Chain for the security.
Icon 1223 enables a user to launch the StrategySEEK component for
the security.
[0045] FIG. 13 is a screen shot illustrating an embodiment of an
action menu invoked from a position from which the user can launch
the StrategySEEK module. In the example shown, marker 1300
indicates the Action Menu. Text 1301 is the position description: a
Call Vertical for General Electric. Text-value pair 1302 is the
Bid. Text-value pair 1303 is the Ask. Icon 1304 enables a user to
share information about this security via the social networking
site Twitter. Icon 1305 enables a user to access help for this
Action Menu. Icon 1306 enables a user to close the window without
taking any action. Color indicator 1307 shows how much the security
is up or down on the day. Text 1308 is the description of the
position where "+5" is the quantity, "January 12" is the expiration
date, "22.5/25.0" are the strike prices" and "Call Vertical" is the
type of strategy. Text-value pair 1309 is the Mark price of the
position. Text-value pair 1310 is how much the mark price has
changed vs. the prior close. Text-value pair 1311 is the percentage
change in the mark price. Button 1312 enables a user to set an exit
plan for the position. Button 1313 enables a user to close or make
an adjustment to the position. Button 1314 enables a user to invoke
the Analysis tools for analyzing the position. Quote 1315 is a
current quote for the underlying security for the position. Icon
1316 enables a user to get detailed Quote information on underlying
for the position. Icon 1317 enables a user to change the grouping
of legs held for the underlying. Icon 1318 enables a user to
display a Chart for the underlying for the position. Icon 1319
enables a user to set an exit plan for the position. Icon 1320
enables a user to display an Option Chain for the underlying for
the position. Icon 1321 enables a user to launch the StrategySEEK
module for the position. Icon 1322 enables a user to Buy the
position. Icon 1323 enables a user to Sell the position.
[0046] FIG. 14 is a diagram illustrating an embodiment of a trading
system. In the example shown, front end system 1400 includes but is
not limited to a user interface and components that support user
interaction. Back end system 1401 includes but is not limited to
mechanisms for storage and retrieval of user and account data as
well as systems for storing historical market data and performing
analytic calculations. Market systems 1402 include but are not
limited to quote systems and order execution systems.
[0047] In various embodiments, front end system 1400, back end
system 1401, and market system 1402 comprise one or more computer
systems with one or more processors coupled to one or more
memories. The one or more computer systems comprise one or more
hardware boxes with one or more operating systems or one or more
virtual systems.
[0048] FIG. 15 is a flow diagram illustrating an embodiment of a
trading system. In the example shown, trading system includes user
interface 1501, front end 1504, and back end 1512. Front end 1504
includes web servers 1502 and quote servers 1503. Quote servers
1503 stream market data to the user interface. Execution Vendors
1505 fill orders in the market from users as relayed via front end
1504 and back end 1512. Back end 1512 includes Supporting
Technology Servers 1506; Application Servers 1507, which provide
application functions and services; P2P(L) 1508, a peer to peer
market data source; Database 1509, which stores all user data
including but not limited to positions, orders, strategy groupings,
exit plans and balances; Business Servers 1510; Analytics and
Charting Servers 1511, whose functions include providing risk
metrics for positions and price charts; P2P(H) 1513 comprises a
market data source. Quote Vendor 1514 is the source for market
price quotes.
[0049] FIG. 16 is a flow diagram illustrating the use of Strategy
Seek. In the example shown, in 1601 the user selects the
StrategySEEK module from the main navigation window. In 1602, the
Strategy component is displayed. In 1603, the user enters a desired
underlying. For example, the user specifies an underlying security
for the StrategySEEK module. 1604, 1605 and 1606 present an
alternate way of invoking the StrategySEEK module. In 1604, a user
clicks a quote for the desired security and an action menu appears.
For example, a user selects a quote to select an underlying which
causes a display of an Action Menu. In 1605, the user selects the
"Strategy" icon to invoke the StrategySEEK module. In 1606, the
strategy component displays with desired underlying security. In
1607, the user may alter the volatility forecast. In 1608, the user
may draw trendlines. In 1609, the user chooses the price forecast
type. The choices for the price forecast type include a price,
price range or outside of a price range. In 1610, the user
specifies the parameters of the price forecast. In some
embodiments, a probability band is determined based at least in
part on the forecast. In some embodiments, the probability band is
displayed or caused to be displayed. In some embodiments, one or
more strategies are determined and the one or more strategies are
displayed or caused to be displayed. In 1611, the user selects and
prioritizes the risk priorities. In some embodiments, an ordered
list is determined based at least in part on a received priority
and/or a received selection. In some embodiments, the ordered list
is displayed or caused to be displayed. In 1612, the user requests
to show the strategies; and the request and forecast are sent to
the back end. In 1613, the Back End system generates related
strategies from live market data. For example, the back end system
stores the forecast and scans real-time market data to generate the
recommended strategies and store them to a database. In 1614, the
front end displays the strategies. In 1615, the user selects and
reviews strategies. In some embodiments, a user may review the
details of various strategies by clicking on them in a list. In
1616, the user may elect to include an existing position if one or
more positions are held for the underlying. This will enable the
legs of a selected existing position to be used to obtain the net
recommended strategy. In 1617, the user can elect to analyze, edit,
or trade a selected strategy. In some embodiments, the user may
directly navigate from a selected strategy to functionality to edit
the strategy, analyze the strategy, or place a trade for the
strategy.
[0050] Although the foregoing embodiments have been described in
some detail for purposes of clarity of understanding, the invention
is not limited to the details provided. There are many alternative
ways of implementing the invention. The disclosed embodiments are
illustrative and not restrictive.
* * * * *