System and method for event-based trading
A system and method for news-based trading are developed. According to one method, a trader can pre-define a trading strategy including a number of trading rules to be applied based on a comparison of one or more estimated event values to the respective actual event values to be released at some later time. The example method further includes, upon receiving one or more actual event values via a user input or directly from outside sources, executing one or more predefined trading rules selected based on the comparison of the received actual event values to the respective estimated indicator values.
1. A system for event-based trading, the system comprising:
a computing device configured to receive a news data feed originating from a source other than an electronic exchange, wherein the news data feed provides an actual event value for a news event that affects a market related to a tradeable object,
wherein the computing device is further configured to receive an estimated event value for the news event prior to an announcement of the actual event value,
wherein the computing device is further configured to define a first trading strategy comprising a first plurality of trading rules to be executed based on a comparison of the estimated event value to the actual event value,
wherein the computing device is further configured to receive the actual event value subsequent to receiving the estimated event value and defining the first trading strategy,
wherein the computing device is further configured to select a trading rule of the first plurality of trading rules corresponding to the first trading strategy based on a comparison of the actual event value to the estimated event value, and
wherein the computing device is further configured to execute the selected trading rule, wherein to execute the selected trading rule, the computing device is further configured to generate a transaction message to be sent to the electronic exchange.
2. The system of claim 1 , wherein the estimated event value comprises an estimated news-related event indicator value, and wherein the actual event comprises an actual news-related indicator value.
3. The system of claim 1 , wherein the actual event value and the estimated event value are received directly from a news source through the news data feed.
4. The system of claim 3 , wherein computing device is further configured to display the estimated event value in a first graphical format on a graphical user interface.
5. The system of claim 4 , wherein the computing device is further configured to display the actual event value in a second graphical format on the graphical user interface in response to receiving the actual event value.
6. The system of claim 5 , wherein the estimated event value and the actual event value are displayed using different indicators.
7. The system of claim 5 , wherein the computing device is further configured to display a time left before the actual event value is released.
8. The system of claim 5 , wherein the computing device is further configured to display a time since a release in response to receiving the actual event value.
9. The system of claim 1 , wherein the actual event value and the estimated event value are input by a user via a graphical user interface.
10. The system of claim 1 , wherein the computing device is further configured to display the first plurality of trading rules in relation to the estimated and actual event values displayed via a graphical user interface.
11. The system of claim 1 , wherein the computing device is further configured to define a second trading strategy comprising a second plurality of trading rules to be applied based on a comparison of the actual event value to a revised event value to be announced at a later time, wherein the computing device is further configured to receive the revised event value, wherein the computing device is further configured select a trading rule of the second plurality of trading rules based on a comparison of the revised event value to the actual event value, and wherein the computing device is further configured to execute the selected trading rule of the second plurality of trading rules corresponding to the second trading strategy.
12. The system of claim 10 , wherein the computing device is further configured to display the revised event value and the actual event value on a graphical user interface.
13. The system of claim 11 , wherein the revised event value comprises a revised news-related indicator value.
14. The system of claim 1 , wherein the transaction message comprises an order transaction message.
15. The system of claim 14 , wherein the order transaction message comprises an order message to buy or sell the tradeable object.
16. The system of claim 14 , wherein the order transaction message comprises an order cancel request message.
17. The system of claim 14 , wherein the order transaction message comprises an order change request message.