Leaning Manager Coordinates Multi-Tool Trading Allocations
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Solution Overview
Problem
In electronic trading systems, running multiple automated or semi-automated trading tools can lead to conflicts and risks of incomplete transactions or financial losses due to tools 'leaning' on the same tradeable object without considering other tools' actions, resulting in potential overbuying or overselling.
Innovation Solution
A 'leaning manager' software module coordinates the actions of multiple trading tools by tracking and allocating market information, preventing overbuying or overselling by managing reservations and allocations of tradeable object quantities across sessions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If multiple automated or semi-automated trading tools are used simultaneously, then trading productivity and strategy diversity are improved, but the risk of conflicts and incomplete transactions increases
Solution Approach 1:
The patent introduces a 'leaning manager' as an intermediary component that coordinates between multiple trading tools and the market. This manager tracks what each tool is leaning on (monitoring market conditions for potential trades) and manages allocations to prevent conflicts. By inserting this intermediary layer, the system maintains high productivity through multiple concurrent tools while ensuring reliability through centralized coordination and conflict prevention.
Solution Approach 2:
The system implements feedback mechanisms where the leaning manager continuously monitors the state of multiple trading tools and adjusts their allocations accordingly. When one tool is leaning on a particular market condition or tradeable object, the manager provides feedback to other tools to prevent them from leaning on the same object, thereby preventing conflicts and ensuring transaction completeness while maintaining overall trading productivity.
2Loss of information
If trading tools lean on the same tradeable object, then market information utilization is improved, but the risk of overbuying or overselling increases
Solution Approach 1:
The patent segments the market information and tradeable object allocations among multiple trading tools through the leaning manager. Instead of allowing tools to independently access the same market information and lean on the same objects, the manager divides and distributes allocations, ensuring each tool has its own designated market information and tradeable objects to monitor. This segmentation prevents overbuying or overselling while maintaining effective market information utilization.
3Device complexity
If automated trading tools operate independently, then system complexity is reduced, but coordination and conflict management become problematic
Solution Approach 1:
The patent merges the coordination function of multiple independent trading tools into a single centralized component called the leaning manager. While individual trading tools remain relatively simple and independent in their core functions, the leaning manager combines their market information needs and allocation requirements into a unified management system. This merging approach maintains low complexity at the tool level while providing effective coordination and conflict management through the centralized manager.
Data Source
AI summary
The present embodiments include methods, systems, and computer program products that provide tools for use in any type of electronic trading environment. In one aspect, leaning manager includes software that can be implemented on any type of computer device for tracking and/or coordinating the buying and selling of available market quantities by multiple automated or semi-automated trading tools. For instance, if more than one automated or semi-automated trading tool is leaning on the same tradeable object then the leaning manager may track and/or coordinate such action. The trading tools can use the tracked information and/or the allocated quantities and their prices to enhance their trading strategies.