Timed Order Management System with Dynamic Time Triggers
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Solution Overview
Problem
Existing electronic trading systems lack flexibility in managing orders, as traders face risks of unfilled orders pending beyond trading sessions or specific dates, limiting their ability to adapt trading strategies effectively.
Innovation Solution
A system and method for configuring and processing timed orders in electronic trading environments, allowing traders to define intra-day time triggers for order modifications, including deletion, cancellation, or replacement, with user-configurable timers linked to specific times or market events, enabling dynamic adjustment of order parameters and submission times.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traders use existing order types (GTD, GTDate, on market close), then orders are automatically deleted at end of trading session or specific date, but traders lack flexibility to adapt orders dynamically to real-time market conditions
Solution Approach 1:
The patent implements dynamic order management by allowing traders to set multiple time triggers throughout the trading day that automatically modify or cancel orders based on the current time. This transforms static order types into dynamic, time-adaptive orders that can respond to changing market conditions without requiring complex manual intervention.
Solution Approach 2:
The system allows traders to pre-configure multiple time triggers and associated actions in advance. When a specified time is reached during the trading session, the pre-configured actions are automatically executed, eliminating the need for real-time manual order management while maintaining flexibility.
2Reliability
If traders keep unfilled orders pending at exchange, then orders may be executed later, but traders risk huge losses when market moves against their position
Solution Approach 1:
The patent enables traders to pre-set time triggers that will automatically cancel or modify orders at predetermined times. This preliminary configuration allows traders to establish risk management parameters in advance, automatically removing orders before market conditions can turn unfavorable, thus protecting against losses while maintaining trading efficiency.
Solution Approach 2:
The system continuously monitors the current time against configured time triggers and automatically executes cancellation or modification actions when triggers are activated. This real-time feedback mechanism ensures orders are managed according to predetermined risk parameters without requiring constant trader intervention.
3Adaptability or versatility
If traders manually monitor and adjust orders throughout the day, then they can adapt to market conditions, but they consume significant time and effort
Solution Approach 1:
The patent implements a self-service order management system where the automated time trigger mechanism handles order monitoring and adjustment without requiring trader intervention. The system serves itself by automatically comparing current time against configured triggers and executing appropriate actions, freeing traders from manual monitoring while maintaining market responsiveness.
Solution Approach 2:
Traders configure all necessary time triggers and actions in advance before the trading session begins. This preliminary setup eliminates the need for manual monitoring during the trading day, as the system automatically executes pre-planned actions at the appropriate times, significantly reducing time consumption while maintaining adaptability.
Data Source
AI summary
A system and method for defining and processing timed orders are defined. According to one embodiment, a trader may define a timed order by defining an intra-day time trigger or a time period when the timed order should be automatically modified, such as deleted or cancelled/replaced with a new order. In one embodiment, the intra-day time trigger or time period may be dynamically changed to a later time, for example, upon receiving a predetermined user input. Also, the time trigger and time period may be configured to dynamically vary based on any user configurable formula. Also, the timed order may be associated with one or more actions to be taken once the order is deleted, such as sending a new order, for example.