Patent Publication Number: US-2007118466-A1

Title: Managed trading process

Description:
FIELD OF THE INVENTION  
      This invention relates to improved methods and apparatus concerning the trading of financial securities.  
     BACKGROUND OF THE INVENTION  
      About ninety percent of traders who trade financial instruments—such as financial securities, stocks, and bonds etc—lose money in their real accounts. A majority of these traders “make money” in simulated accounts, where no real money is invested.  
      The reasons for failure (losing money) in real accounts may or may not be limited to the following: (a) fear, (b) greed, (c) lack of discipline to follow a plan, (d) failure to control emotions, (e) failure to follow self-set rules, (f) psychological pressure, (g) stress, (h) failure to accept and limit losses (risk not justified), (i) over-trading, (j) uncontrolled ego of a trader, and (k) no proper money management (improper position size).  
     SUMMARY OF THE INVENTION  
      One or more embodiments of the present invention remove and/or reduce a majority of the reasons financial instrument traders lose money in their real accounts. In at least one embodiment this is accomplished by dividing the trading task between two separate entities: a trader entity, and a money manager entity.  
      Typically trading of financial instruments is comprised of two tasks: one, when to buy or sell and two, how much money to invest per trade. One or more embodiments of the present invention provide a way to separate task one from task two. Task one may include an entry/exit signal strategy which is implemented by a trader clicking on a computer user Interface or by a trader&#39;s own automated signal generation strategy. Task two may typically include a money management strategy, which is implemented by a money manager, in which a set of rules and/or methods are applied manually or in an automated manner.  
      A trader takes the buy/sell signals (from task one) and the money manager decides which account (simulator/real) is traded and how many contracts are traded. The trader can opt for display of either an exact number of contracts/shares traded with an actual number of realized/un-realized profit loss numbers or default number of contracts/shares. For example, the trader can have displayed on a user computer monitor or user interface, one contract or one hundred shares and appropriately adjusted number of realized/un-realized profit loss numbers. One or more embodiments of the present invention employ a joint effort between a trader (which may be a human being and/or a computer) and a money manager (which may also be human being and/or a computer) to apply systematic methodology and make money in the markets. 
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       FIG. 1  shows a diagram of a system, apparatus, and method in accordance with an embodiment of the present invention;  
       FIG. 2  shows a first image which can be displayed on a user interface of  FIG. 1 ;.  
       FIG. 3  shows a second image, which can be displayed on the user interface of  FIG. 1 ;  
       FIG. 4  shows a flow chart of a method in accordance with an embodiment of the present invention.  
       FIG. 5  shows a diagram of a system, apparatus, and method in accordance with another embodiment of the present invention; and  
       FIG. 6  shows a diagram of a system, apparatus, and method in accordance with another embodiment of the present invention. 
    
    
     DETAILED DESCRIPTION OF THE DRAWINGS  
       FIG. 1  shows a diagram of a system, apparatus, and method  1  in accordance with an embodiment of the present invention. The system, apparatus, and method  1  includes a database  2 , a money management server  4 , a money manager entity  6  (in actual implementation there may be and typically would be one or more money manager entity), a broker server  8 , a trader 2  or trader entity  18 , a trader 1  or trader entity  20  (in actual process implementation there may typically be one or more traders), a client application computer program based on broker API (Application Program Interface) or FIX (Financial Information eXchange) protocol running on client (trader) machine  22 , a user interface or order entry computer monitor or screen  24 , and user configuration settings component  26 .  
      The broker server  8  includes trader 1  simulator account  10 , trader 1  real account  12 , trader 2  simulator account  14 , and trader 2  real account  16 . Any further number of trader real and simulator accounts may be part of broker server  8 .  
      The client application computer  22  running a computer program based on broker API (Application Program Interface) or FIX (Financial Information Exchange) protocol or any other protocol used for communicating financial information includes a user interface  24  (such as a computer monitor, keyboard, and/or mouse) which a trader may use to enter trades. The actual trade parameters will typically be controlled by user configuration settings component  26  which are typically set by money manager  6 . The client application computer program  22  can also be programmed to accept an automated order from a trader&#39;s automated trading system (ATS), which may be in a trader&#39;s computer, such as one of the trader entities  18  or  20  in  FIG. 1 —and/or may replace one of the trader entities  18  or  20  in  FIG. 1 , instead of a trader clicking on a computer mouse of the user interface  24  to place the trade.  
      The database  2  may be a computer memory database or a computer database application. The database  2  may include a user identification and a password for a user to logon to broker accounts (simulator and real). The database  2  may communicate with the money management server  4  via communications link  2   a . The money management server  4  may be a computer server. The money management entity  6  may be a human being or a personal computer running an automated money management software program. The money management entity  6  may communicate by communications line  6   a  with the money management server  4 .  
      The broker server  8  may be a computer server. Each of the accounts,  10 ,  12 ,  14 , and  16  may include information stored on the broker server  8 . Trader  18  and trader  20  may each be a human being who functions as a trader or may each be a personal computer running a software program (such as an automated trading system or ATS computer program,), to place trades. The client application computer  22 , which may run a computer program based on broker API or FIX protocol may be a computer program running on a client or trader computer machine or server.  
      The traders  18  and  20  may be connected to the client application computer  22  by communications lines  18   a  and  20   a , respectively. The user interface  24  may be connected by communications line  24   a  and  10   a  to account  10 , by communications lines  24   a  and  12   a  to account  12 , by communications lines  24   b  and  14   a  to account  14 , and by communications line  24   b  and  16   a  to account  16 . The user configuration settings component  26  (in a memory), may communicate with the user interface  24  via communications line  26   d . The user interface  24  may also communicate with user configuration settings component  26  via communications line  24   c . The money management server  4  may communicate with the user configuration settings component, via communications line  4   a . The user configuration settings component may communicate with the broker server  8  via communications lines  26   a ,  26   b , and  26   c.    
      In operation, the computer program of the client application computer  22 , based on broker API (application program interface) or FIX protocol  22 , may be updated by the money management server  4  via a communications link  4   a  with money management rules during login into the client application computer  22  by a trader or before placing each trade. The money management server  4  may have stored therein user based settings, such as allowed trading instruments or securities, maximum stop loss per trade, and maximum stop loss per day and acct# (real or simulator) to which the next trade or all trades on that day should be placed.  
      Trader 1  or entity  20  may provide orders via communications links  20   a  to the client application computer  22 . The orders may be communicated through user interface  24 , which may be a computer keyboard, computer mouse, order entry screen, an automated trade placing system, or any other interactive device. A status of the user configuration settings component  26  may be supplied back to the user interface  24 , such as by being displayed on a monitor, through communications links  26   d . For example, the status may include the maximum stop loss reached per day or per trade.  
      Trader 1  or entity  20  may provide orders via user configuration settings component  26 , and communications link  26   a  to the broker server  8  which may result in changes to the trader 1  simulator account  10  (via communications link  10   a ) or to the trader 1  real account  12  (via communications link  12   a ).  
      In one embodiment of the present invention, each task is divided per entity. The task of either trader 1  (entity  20 ) or trader 2  (entity  18 ) is just to provide entry/exit signals while the money manager entity  6  decides which account number (simulator or real) to route the order and how many contracts/shares to trade.  
      The trader entity, such as one of trader entities  18  and  20  in  FIG. 1 , will take an entry or exit signal, based on his/her own personal trading skills or based on an automated trading system (ATS) while the money manager entity  6  will take control of flow and order parameters, which may include, for example, account number routing and number of contracts/shares traded.  
      In one embodiment of the present invention, the trader entity, such as  18  or  20 , focuses on making actual trades (based on his/her own methods, logic, and/or strategy, which may be proprietary) without worrying about which account (simulated or real) the order is routed to along with the number of contracts/shares traded. The money management entity  6 , focuses on a value for a particular account having a particular account number, a performance for the account, a trading financial instrument, and a trading duration. The money management or money manager entity  6  can either employ an automated system or a manual strategy, either of which may be proprietary.  
      There is no obligation for each entity of entities  18 ,  20 , and  6  to share his/her trading/money management strategy even though they work on the same order. Their actions are isolated, decoupled, and independent from each other.  
      The money management entity  6 , shown in  FIG. 1 , may set some rules in the money management server  4 , based on the amount of money or value in a particular account, the performance of a particular account, a financial trading instrument, a trading duration, or a maximum stop loss the particular account can handle for each trade and/or for each day.  
      The trading entity, such as  18  or  20 , makes actual entry/exit signal decisions independent of a money manager entity, such as  6 , but the stop loss, maximum daily loss, and maximum trade loss decisions may be determined by the money manager entity  6 .  
      The relationship between the trader entity, such as  18  or  20 , and the money manager entity, such as  6 , can be one to one or many to one or many to many.  
      One way to reduce emotions/fear/greed is for a trader, such as one of entity  18  or  20 , to write his/her own fully automated system where the trader himself/herself acts like a money manager, similar to money manager entity  6 , but there are several disadvantages of a fully end to end automated trading system. Some of the disadvantages are: (a) not all strategies can be automated, (b) traders like to have more control on entry/exit signals rather than be completely dependent on an ATS (automated trading strategy), as market conditions can change drastically without any prior notice, (c) traders are not qualified to code their own ATS, and (d) traders may not want to share their strategy, with an ATS developer.  
      On the other hand, a trading process of various embodiments of the present invention takes advantage of a low stress simulation environment and is based on a trader&#39;s performance and directs the orders to a simulator or a real account along with controlling the trading instrument position size. It&#39;s a perfect blend of simulation and real trading.  
      The present trading process invention may not be beneficial to traders who are consistently profitable in the market and who have complete control of their emotions. These types of traders typically account for only ten percent or less of the total traders in the market.  
      The trader entity  18  or  20  to money manager entity  6  fee relationship may be (a) subscription based (/day, /week, /month, /year, etc.), (b) percentage based, (c) subscription and percentage based, (d) per trade, or (e) flat fee. The money manager entity  6  can charge a trader entity  18  or  20  with any of the above schemes or the money manager entity  6  and trader entity  18  or  20  can open a joint account and divide the proceeds of the account based on percentage owned.  
      One embodiment of the present invention may have the following architecture. The trader entity, such as  18  or  20  in  FIG. 1 , may follow his/her own proprietary trading strategy to enter and exit trades depending on the financial instrument traded. In this case the maximum stop loss per day and/or per trade is typically set by the money manager entity, such as  6  in  FIG. 1 . The trader entity, such as  18  or  20 , can be automated or manual.  
      The money manager entity, such as  6 , may follow his/her own proprietary money management strategy to set the maximum stop loss per day and/or per trade depending on the instrument traded value of particular account, performance of the particular account, and the trading duration. The money manager entity  6  may be automated or manual.  
      The computer software for the client application  22  in  FIG. 1 , may have the following specifications: 
          a) It can be browser based or a client .EXE installation.     b) It may be implemented based on a broker supplied API or FIX protocol or any other protocol used for communicating financial information.     c) The computer software for client application  22  can be custom tailored to one broker API or FIX protocol or can be a generic implementation able to connect to multiple broker server based on configuration settings.     d) The computer software for client application  22  can be programmed in any language supported by a broker&#39;s API or FIX protocol.     e) It can receive trade orders using the user interface or automated route.     f) The computer software for client application  22  can display an exact number of contracts/shares traded or just display default contracts/shares e.g. if defaulted contract size is one and ten NQ (Nasdaq futures) contracts are actually traded either in simulated or real account number then client application  22  can either display ten NQ (Nasdaq futures) contracts or just one contract to the trader entity  18  or  20  on the user interface  24 . The money manager entity  6  typically has full knowledge of the number of contracts/shares traded and the account number to which they are directed. Trading duration can be day trading or swing trading.        

      In one embodiment of the present invention, a client application, such as  22  in  FIG. 1 , communicates with a money management server, such as  4 , only once daily at login by a user into the client application  22 , and/or during initiation of each trade.  FIG. 1  shows an architecture of how one money manager  6 , can set rules for various traders (trader 1  (entity  20 ), trader 2  (entity  18 ), etc.)  
      The following is an example with sample dummy numbers and will change based on the previous performance by a trader, instrument traded, value in a particular account, trading duration etc. These numbers are merely for demonstration of one hypothetical scenario.  
      Trader 1  or entity  20  wants to day trade NQ (e-mini Nasdaq futures) and has his/her own trading strategy (automated or manual). The money manager entity  6  has his/her own set of methods/strategy (automated or manual). The Trader 1  or entity  20  and the money manager  6  both open a joint account with a broker, such as one having a broker server  8 , which exposes API or FIX protocol for automation, putting $3K (three thousand dollars) each, having a total account value of $6K (six thousand dollars). In this example, six thousand real dollars are placed in the real account, such as account  12  with broker server  8 . Based on the value in a particular account and the financial instrument traded, in this case Nasdaq futures (NQ), the money manager entity  6  may come up with the following rules for Trader 1  or entity  20 : 
          a) The maximum daily loss (including all trades for the day) should not exceed $200. The client application  22  will display (for example on a computer monitor of client application  22 ) and message via the user interface  24  to Trader 1  (entity  20 ) specifying when the maximum allowed daily loss has been met and no more new trades can be initiated on a particular day. The system may ask for a password after daily loss limit is reached and may ask if a trader still wants to place a new trade. The money manager  6  controls the password and may or may not tell the trader and the money manager  6  also has rights to change the password.     b) Ideally, trader 1  should make around three trades with a maximum loss of $60.00 each, which is equal to three NQ points. (This may just be a suggestion by the money manager  6 , but the Trader 1  (entity  20 ) can decide based on his/her own strategy to do only one trade a day for a stop loss of $200.00).     c) Ideally, either the average profit target should be more than the average stop loss plus the commissions or the percentage of winning trades should be more than the percentage of losing trades.     d) The money manager  6  will inform and/or update trader 1  via the user interface  24  or via other communication mediums such as email, phone etc. when there is a thirty percent increase or a thirty percent decrease in an account value or after five months that an investment has been owned whichever comes first.     e) Customizable option whether Trader 1  (entity  20 ) wants to see on the user interface  24 , the actual number of contracts/shares traded or just a default number of contracts/shares and appropriately adjusted realized and unrealized profit/loss numbers.        

      Only when both (the trader 1  and the money manager entity  6 ) agree to all of the above similar conditions (in this example) then the trader 1  (entity  20 ) and the money manager  6  can start trading. The rules/numbers shown above may change between each trader and money manager combination.  
      Based on the daily activity of trader 1  (entity  20 ), the money manager  6 , will apply his/her strategy and come up with the money management rules for the next day and update the money management server  4 . The next day either during trader 1  login or during each trade the money manager  6  rules will be read from the money manager server  4  and update the reference data (user configuration settings component  26 ) of the client application  22  of the trader 1  (entity  20 ). The trader 1  is now allowed to trade based on an agreed trading instrument with a maximum daily loss per day or per trade. The message will be displayed to the trader 1  if he/she reaches the maximum loss limit set by the money manager  6 .  
      The money manager entity  6  can direct the order to either a simulated account, such as  10 , or a real account, such as  12 . The trader 1  (entity  20 ) will never see on the user interface  24  screen which account the order was actually routed to and the display of number of contracts/shares filled realized/un-realized profit loss numbers will depend on the customized option the trader has selected.  
       FIG. 2  shows a sample UI (user interface) screen or first image  100  which may appear on the user interface  24  of the client application  22 . The user interface or first image  100  may change to a different image for each trader or instrument traded.  
      Various fields or windows will be described for the first image  100 . Some of the fields can can be selected by placing a computer cursor over the field by moving a computer mouse, and then clicking the computer mouse while the cursor is over the particular field. Some of the fields may also be selected by touching them, such as on a computer touch screen. Some of the fields or windows may merely display information and may not be able to be selected.  
      The first image  100 , shown in  FIG. 2 , may include fields or windows  108 ,  110 ,  112 ,  114 ,  116 ,  118 ,  120 ,  122 ,  124 ,  125 ,  126 ,  128 ,  130 ,  132 ,  134 ,  136 ,  138 ,  140 ,  142 ,  144 ,  146 ,  148 ,  150 ,  152 ,  154 ,  156 ,  158 ,  160 ,  162 , and  164 . Field  108  can be clicked on to connecting the broker server  8  to the client application  22 , so that the client application  22  can receive quotes and place trade. orders. Field  110  can be clicked on to disconnect from the broker server  8  from the client application  22 , so that the client application  22  will no longer receive quotes or be able to place trade orders.  
      Field  112  can be clicked on to clear any error/status messages previously received by a broker via the client application  22 . Fields  114  or  116  can be clicked on to allow a trader to place a bracket order buy or short order, respectively. Typically a stop loss and profit target order will automatically be placed based on the agreement between the money manager  6  and a trader, such as entity  18  or  20 .  
      The window  118  reports any broker server  8  response, such as for example, a status that an order has been filled. The window  120  reports any server errors e.g. connection lost between client application  22  and a broker server  8 . The window  122  shows the last price of the currently selected/traded instrument. The field  124  can be clicked on to refresh window  125 . with the price above and below the price in window  122 .  
      In the window  125 , a trader can select—the price and click on fields  114  or  116  to place the trade for that selected price. The fields  126 ,  128 ,  130 , / 132 ,  134 , and  136  are used by a trader, such as entity  18  or  20  of  FIG. 1 , to modify an open order (some of these fields may be marked read only). Field  138  can be clicked on to cancel a selected open order. In case of a bracket order only the parent order may be able to cancelled, again this depends on the money manager  6  and trader agreement rules.  
      The field  140  can be clicked on to modify an existing order. The window  142  displays all open orders currently in the market. Field  144  when on clicked on refreshes the window  142  with current open orders in the market. Field  148  when clicked on refreshes windows  158 ,  160 ,  162  and  164  with current account values. Field  150  when clicked on refreshes window  156  with all executed orders for the current day. Field  152  can be clicked on if the trader wants to place an individual buy/sell order instead of bracket order. Field  154  can be clicked on to close the client application. Window  156  displays a current day&#39;s executed orders. Field  158  shows the symbol of a security or investment traded. Field  160  shows the current position traded (can be defaulted to 1 on UI (user interface), based on trader and MM (money manager) agreement). Field  162  shows currently unrealized profit loss. Field  164  shows current day&#39;s realized profit loss.  
       FIG. 3  shows a second image  200 , which can be displayed on a computer monitor of user interface  24  of  FIG. 1 .  FIG. 3  shows an example of a trader in a one nasdaq future short position with sample numbers. For the  FIG. 3  example, a trader, such as entity  18  or  20 , is in a short trade with a short entry at “1724.5” shown highlighted or outlined in window  225 , and a stop loss set at “1727.5”, shown in the sixth column of a row  242   a  of table  242  and a profit target set at “1714.5”, shown in the fifth column of a row  242   b  of table  242 . The fields or windows  108 ,  110 ,  112 ,  114 , and  116  in  FIG. 3  are the same as in  FIG. 2 . The field or window  218  in  FIG. 3  corresponds to the window  118  in  FIG. 2 , but the window  218  contains different information, which is order status response from broker server for the open orders in  242 . The field or window  220  of  FIG. 3  corresponds to the field or window  120  of  FIG. 2 . Fields or windows  122 ,  124 ,  126 ,  128 ,  130 ,  132 ,  134 ,  136 ,  138 ,  140 , and  144  are shown in both  FIGS. 2 and 3 . Window  242  in  FIG. 3  corresponds to window  142  in  FIG. 2  but window  242  shows different information, which is the stop and profit target orders to exit the current nasdaq future short position. Window  242  has rows  242   a  and  242   b  of data, which is the stop and profit target orders to exit the current nasdaq future short position. Fields or windows  148  and  150  are the same in  FIGS. 2 and 3 . Fields or windows  156 ,  158 ,  160 ,  162 , and  164  in  FIG. 2  correspond to  FIG. 3  windows or fields  256 ,  258 ,  260 ,  262 , and  264 .  
       FIG. 4  shows a flow chart  300  of a method in accordance with an embodiment of the present invention. The method of  FIG. 4  begins at step  302 , wherein a trader logs into the computer program of the client application  22  of  FIG. 1 . Next at step  304 , a processor (which may be thought of as being part of client application  22  along with user interface or computer monitor  24 ) running the computer program of the client application  22  displays a current price of a financial instrument traded in real time on the user interface or computer monitor  24 . A trader, such as one of traders  18  and  20  can use the user interface  24  to enter trades The key information hidden from the trader in the user interface  24  is 1) the type of account to which the order will be routed (i.e real or simulated) and 2) the exact amount to be traded (such as the exact number of contracts, shares, or amount of money). Alternatively, the trader may be just defaulted to one contract filed in the user interface  24 , and the exact number can be controlled by the rules set in the money management server  4 .  
      At step  306 , a trader places a trade to buy a number of futures, such as NQ (Nasdaq futures), using the user interface  24 . At step  308 , the order is verified against the money management rules, which are fed by money manager entity  6  into the user configuration settings component  26  of  FIG. 1  For example, if the trader has already hit the maximum loss limit per day, then the order is rejected and a message is displayed on user interface  24  to the trader  18  or  20  and the order is not routed to a broker, such as broker server  8  of  FIG. 1 . At step  310 , the user configuration settings component  26  determines from money management rules whether we are dealing with a real or simulated broker account. The order is routed to appropriate account and the order status is communicated back to the user interface  24 , i.e. it is indicated on the user interface  24  whether the order was filled or some other status.  
       FIG. 5  shows a diagram of a system, apparatus, and method  400  in accordance with another embodiment of the present invention. In  FIG. 5 , various components, are similar to components in  FIG. 1 . The system, apparatus, and method  400  includes a database  402 , a trader  418 , trader  420 , client application  422 , which includes a user interface  424 , a money management server  404 , a money manager entity  406 , and a broker server  408 , similar to components  2 ,  18 ,  20 ,  22 ,  24 ,  4 ,  6 , and  8 , respectively, shown in  FIG. 1 . The broker server  408  includes simulator accounts  410  and  414  and real accounts  412  and  416  similar to simulator accounts  10 ,  14 ,  12 , and  16 , respectively, in  FIG. 1 . In  FIG. 5 , the client application  422  communicates with money management server  404  via communications channel or line  404   a . The money management server  404  communicates with money manager entity  406  via communications line or channel  406   a . The money management server  404  communicates with the broker server  408  accounts via communications lines  426   a ,  426   b ,  410   a ,  412   a ,  414   a , and  416   a . Traders  420  and  418  communicate via communications lines or channels  420   a  and  418   a  respectively, with client application  422 .  
      In  FIG. 5 , a client application  422 , which may similar client application  22 , except as noted, typically always communicates with a money management server  404  and the money management server  404  in turn routes an order to a specific account, typically having an account number, after applying the appropriate money management rules. In this case the client application  422  need not be implemented in a broker API or FIX protocol, and the broker specific API or FIX protocol code should be implemented in the money management server  404 .  
       FIG. 6  shows a diagram of a system, apparatus, and method  500  in accordance with another embodiment of the present invention. In  FIG. 6 , various components, are similar to components in  FIG. 1 . The system, apparatus, and method  500  includes a database  502 , a trader  518 , trader  520 , client application  522 , which includes a user interface  524 , a money management server  504 , a money manager entity  506 , and a broker server  508 , similar to components  2 ,  18 ,  20 ,  22 ,  24 ,  4 ,  6 , and  8 , respectively, shown in  FIG. 1 . The broker server  508  includes simulator accounts  510  and  514  and real accounts  512  and  516  similar to simulator accounts  10 ,  14 ,  12 , and  16 , respectively, in  FIG. 1 . The money management server  504  communicates with money manager entity  506  via communications line or channel  506   a . The money management server  504  communicates with the client application  522  via communications line  504   a . Traders  520  and  518  communicate via communications lines or channels  520   a  and  518   a  respectively, with client application  522 . The user configuration settings module  526  communicates with the broker server  508  via communications lines  526   a ,  526   b ,  526   c ,  510   a ,  512   a ,  514   a , and  516   a . The user interface  524  communicates with the broker server via communications lines  524   a  and  524   b . In yet another embodiment, a trader entity, such as  518  or  520 , either has to download everyday typically onto a trader&#39;s personal computer, which may be part of entity  518  or  520 . (a) In the embodiment of  FIG. 6 , the money manager rules encrypted data either as a stream or a file format. The user config (configuration) settings data will then decrypt the data and apply the specified rules on the traders orders or (b) New .EXE client application program for application  522 . This .EXE application program may typically have an entire broker application program interface code along with money management rules for each day.  
      In this way the computer program of the client application  522  will directly communicate via API or FIX protocol to Broker server  508 , thus reducing delays communicating with money management server  504  while placing trades.  
      In one or more embodiments of the present invention, a money manager and/or money manager server, such as money management server  4  and money management entity  6  in  FIG. 1 , money management server  404  and money management entity  406  in  FIG. 5 , or money management server  504  and money management entity  506  in  FIG. 6 , may reverse a trader&#39;s received instructions for trading of a first set of financial instruments, if a trader has exceeded a threshold in losses on a previous second set of financial instruments. For example if the trader has lost more than $10,000.00 on a previous second set of financial instruments, such as a previous set of stocks, then when the trader requests to buy a first set of stocks, the money manager may instead sell (or short sell) the first set of stocks, in a brokerage account of the trader. Similarly, if the threshold is exceeded, when a “sell” order is received from the trader, the money manager or server, may cause a “buy” order to be executed in a brokerage account of the trader.  
      Although the invention has been described by reference to particular illustrative embodiments thereof, many changes and modifications of the invention may become apparent to those skilled in the art without departing from the spirit and scope of the invention. It is therefore intended to include within this patent all such changes and modifications as may reasonably and properly be included within the scope of the present invention&#39;s contribution to the art.