TradeSystem. User Reference and Installation Manual. Version 1.0. Orion Computer Systems, Inc. TradeSystem User Reference and Installation Manual

Transcription

1 TradeSystem User Reference and Installation Manual Version 1.0 Orion Computer Systems, Inc. 1

2 Table of Contents 1- Overview / Functional Summary 2- General Installation Local / PC - Remote / Cross Platform 3- Fixed Income Work Station 4- Equities Work Station 5- Forex Group Trade Manager - Summary - Accounts Pane - Orders Pane - Charts Pane 2

3 1- Overview / Functional Summary TradeSystem is a Java Swing based implementation of a traders workstation. It is to support both retail and institutional trading in many markets. This is by use of market access API's and resident trading applications or subsystems. Being an open framework, TradeSystem is intended to cover a number of market domains, and easily fit into different environments. It can serve many critical needs of money mangers, brokers, and traders in Equities/Stocks/Indexes, Fixed Income, and Foreign Exchange. Future version/releases of TradeSystem will include the addition of application subsystems for other market domains. Enabling the various application subsystems for an installation can be based on Institutional and / or retail use. For example, MT4 Forex access which is included is for Retail Forex Trading, but TradeSystem also includes FIX which can be used for both retail and institutional usage in equities and fixed income.. Because TradeSystem was written in Java it is also intended to run on anything that supports Java. TradeSystem was built with JRE6+, so it also takes advantage of Java s low-latency multi-threading capability to deliver superior performance for the markets it supports. This is where speed and delivery of market rate information, and rapid order execution are essential business needs. As an open framework, TradeSystem further enables the opportunity to incorporate any Java application which can run in Java Swing. A candidate application ( third party, or private/internal end user) can be included in the context of a Swing JPanel, JDialog, or JTabbed Pane. It can be limited to a menu button where its entire context is fully containerized, under a tabbed pane. A candidate application can also exploit and leverage TradeSystem's classes and run time objects.. These classes and objects include two special API's included in version 1 noted later, and basic third party subsystems such as Swing, JFreeCharts, JDOM, ROME, Forecast and TradeSystem's quant libraries. Thanks to Java's engineers, adding candidate applications is like Lego's. This is where things tend to snap together in an object oriented way. This means that TradeSystem applications can be leveraged, and also integrated with other candidate applications. It makes TradeSystem an ideal candidate to adapt to a trading environments needs. For institutions, TradeSystem can be part of a unified enterprise wide framework. Servlets and EJBs are considered contained withing their own context of an application subsystem. Interoperability then becomes a matter of object orientation. One example is in its use as part of a standardized framework for Custodian Lender Asset Management system consisting of both a Securities Lending and Repo Desk. That is in addition to business core management subsystems for portfolio management, risk analytic's, research, credit, trading and sales. In other words, there can be many separate and non interoperable applications in a Lending Institution's operation. TradeSystem can always fit within its plan for a strategic architecture. For Retail: Third party and personal implementations of subsystem applications can be incorporated : i.e - when wanting to integrate one's heterogeneous applications in an object oriented framework. An example is in the context of the Equities workstation which supports FIX for ECN connections. For a Stock Analytic/Auto Execution order candidate application, it would become a subsystem within Equities. 3

4 Some Current Application Program Interfaces: Included in Version I.0 release are implemented APIs ( application program interface ). This is for cross platform access to MT4 Forex services. MT4 is normally bound to the Microsoft platform for use with proprietary MT4 Terminal and other MT4 based Forex Applications from Meta Quotes that can only run in C++. TradeSystem uses a custom Java Wrapper API that includes both Remote Method Invocation (RMI) and Java Native Interface (JNI) Technologies. Using this API, the normally PC bound MT4 service can be used by both TradeSystem's Forex Group Trade Manager and any other third party candidate : even an enterprise level Java based application. Additionally, Version 1 includes an implementation of quick-fix. This is for supporting FIX protocol versions and can be used for Equities and Fixed Income ECN access. Both of these APIs are further described later based on their use in this manual. 4

5 2- General Installation For easy installation, TradeSystem's installation file comes as TradeSystem.zip, This is a compressed file containing the universe of TradeSystem. Its compressed contents are installed as a file system on your computer. For PC's, you simply use win zip, and for Unix type systems, use 'unzip' in order to install TradeSystem's file system. The file system's root is 'TradeSystem'. The installation's placement is flexible in that you can install it as D:\TradeSystem, as demonstrated below, or as C:\Program Files\TradeSystem; on a Unix system: i.e /home/${user-name}/tradesystem, etc In the TradeSystem/classes ( directory ) folder there are three important java jar files: tws.jar, tws_remote.jar and tws_server.jar. 5

6 TWS_Jar: is a base installation of TradeSystem. In Windows it can be clicked like any icon, or from the command line: in Unix or Microsoft :java -jar twa.jar. All included applications except for the MT4 based Group Trade Manager Foreign Exchange application that is included in tws_remote.jar, can run on any platform. For PC's this can be considered a local version of TradeSystem where MT4 access is included. TWS_remote: is also a base installation, but is fully operational on a cross platform basis. For MT4 based Group Trade Manager Foreign Exchange application support, an API is used that connects to a tws_server instance on a known PC or Microsoft server that advertises via its RMI Registry. In Windows it can be clicked on like an icon, or from the command line: in Unix or Microsoft :java -jar twa In both cases of TWS and TWS_Remote, a Java Native Interface ( JNI) is used to connect the TradeSystem-I Forex Group Trade Manager Java Swing application to the MT4 Forex Server library DLL ( Meta Trader 4 Server API mtmanapi.dll ). TradeSystem's GTM application itself provides PAMM ( Percent Allocation Method ) functionality in addition to Lot, Equity or Balance Allocation Methods. This runs on anything Java which includes even a Sun Systems. MT4 Server access can also be used remotely by using Java s Remote Method Invocation RMI. Technology: i.e - For Sun Solaris, Linux Machines, IBM s, HP's, Dec s and Apples to assure crossplatform access to the MT4Server Java API. Anywhere you run Java you can use the TSGTM to trade through your Forex Broker, as long as there is a PC running MT4 Forex Server library DLL ( MT4 Server mtmanapi.dll ) that can be reached with Java Remote Method Invocation. 6

7 TWS_Server is a simple Gateway that runs on a PC. It connects Trade System Remote sessions with an MT4 Forex Broker/Dealer. The TSGTM serves as a Flagship / Proof of vision that Java Applications can be connected to the Meta Quotes MT4 Server using its underlying Java Native Interface JNI API, This should be able to open doors to new opportunities for a broader reach for a client base in providing cross platform compatibility. In Windows it can be launched by first running 'start rmiregistery'; and then clicking on it like an icon, or from the command line like in Unix :java -jar_tws_server.jar. 7

8 Configuration Setup: Upon initial start-up of either tws.jar or tws_remote.jar after its installation, the workstation configuration window will open. You can always open it by selecting it from the 'File Pull down. Your name is optional. For future releases it could also nice to have. But the other information you provide is important for TradeSystem. This is in order to know where its file systems are, and if planning to use FIX,MT4 or both. Root Path: This is your install path for TradeSystem. Recall that when you unzip TradeSystem.zip, its root directory, regardless where you place it in a file system tree is TradeSystem. The Root Path is important in telling TradeSystem where it is in the tree. In the above case it is D:\TradeSystem. FIX Configuration Detail: COMPI ID: represents the Comp ID that your FIX account uses. Currently, TradeSystem is configured as an FIX Initiator.. Target ID: TradeSystem has used OPENFIX for its certification, but should be changed for your ECN or broker. FIX Server IP: Every FIX connected Acceptor has a required IP address which is unique to them. This is where you fill in their IP address. For example: FIX Server Port: This is the unique port that your FIX Acceptor service ( Broker / Dealer or ECN ) is running on. It is important to remember that this unique port number cannot be blocked by your fire wall. FIX Protocol #: This should be set to the protocol supported by your FIX Acceptor Service and can range from versions 4.0 to

9 MT4 Forex Money Manager Account Setup If you are trading currency pairs as a money manager or intend to manage many sub-accounts, then you must provide important information for 3 or 4 fields under MT4 Forex Money Manager Account Setup. Login ID: This has to be a MT4 manager's account that is intended to manage sub-accounts which are also registered with your MT4 Forex service Broker / Dealer under the managers account. Password: This is to be the specific password that your MT4 Service Broker / Dealer issued for the manager account's Login ID. IP:Port #: This field is to take the combination of the IP and port number of the MT4 Service Forex Broker Dealer. The assignment's format is to be in the form of IP Address:Port Number or ' :0000' MT4 Gateway: This is for the address:port pair of your PC if you are running tws_remote and you have a tws_server running on a PC to connect through. The IP address is as it is known on the PC, and the port number for the MT4 Gateway is '8222'. Set Configuration: This button saves the configuration. 9

10 TradeSystem Fixed Income Work Station: The TradeSystem Version 1 Fixed Income workstation has four ( 4 ) main areas. In later versions, expansion in scope is planned through additional tabs: For specific application environments such as REPO. Tab 1- Market News: Uses ROME to collect RSS News feeds off the Web upon demand. These include Fixed Income Bond data, and Market and Economic news from world wide sources. What is current in the news is available for selection in the left hand pane for review in the right pane. 10

11 Fed Charts: Fed Charts provides charting capabilities of all interest rates available from the Federal Reserve. The rates can be refreshed or brought current by clicking on the download button on the bottom of the left hand panel. 11

12 Bond Data The Bond Data Panel provides current access to US Treasury Saving Bonds and State / Local Bonds. 12

13 Portfolio Value: The Fixed Income Portfolio Manager ( Portfolio Value ), will be released in TradeSystem Version 2. As there is a need for a portfolio manager for every market, and the means to interpolate a group that represent cross markets, TradeSystem version 2 portfolio managers will be a factory based service. In other words, a portfolio manager that is designed for the specific market place, but which can be re-represented in other portfolio formats. For Fixed Income, as a base class, this is considered to Value at Risk ( VAR ) for the portfolio(s). In Fixed Income, portfolios must also account for interpolating off book besides on book assets. Based on deriving the portfolio from the portfolio factory, it will have interoperability with FIX 5.0. Interfaces will also be provided for enabling triggers and watch dog risk indicators. Most Fixed Income trading for TradeSystem is intended for institutional use. Retail and institutional portfolio rendering can share similar frameworks: i.e - such as VAR, which here is considered the 'base class'. Built on the base class, portfolio views for REPO as well as Accounting and Sales can be derived. The base class is to be provided in TradeSystem version 2. It is expected to enable third party leveraging of enhancements to meet an institution's requirements. In addition to the implemented FIX 5.0 interface, third party providers can easily hook an API into a client's institution's enterprise architecture, or even legacy systems for other routes to portfolio sources. 13

14 Equities and Stock Work Station: The Equities/Stocks Work Station in Version 1 has five (5) sections. Three of which ( Market News, Quotes and Charts, and FIX Market Order ) are implemented. In TradeSystem version 2, the other two sub-systems, Risk Analytic's and the Equities/Stocks Portfolio Manager will be implemented. Market News: provides on demand news delivery sourced from RSS feeds which are specific to the Equities/Stock Market. What current news that is in the market world wide is delivered based on demand. 14

15 Quotes and Charts: The Charts and Quotes section provides ample tools for obtaining quote, and making charts of many indexes and their included stock issues. You are able to build a 'Watch List by adding and/or deleting symbols of traded stocks. Further, from clicking on a stock symbol, either from the Watch-list, Quote panel, or from an index list, such as the Dow Industrials, the symbol can be past to the Quote Section, or Charts, Large Charts, or to FIX for online trading. Example you high lite a symbol and a selection menu prompts for Quote and Chart, Large Chart, add to Watch List, or pass it to FIX. You simply select where to send the symbol. 15

16 Click for Quote button: Clicking for quotes can be done manually by 'Clicking the Quote' button, or automatically by passing the stock's symbol to it via the pop-up menu selections noted earlier. Quote rendering provides most of Level One. In TradeSystem version I, Yahoo is the provider of delayed quotes. This is based on a modular configuration where via a Quote Source Factory in Version 2, quotes will be made available via FIX, and from third party sources for real time delivery. Real Time Quote services are considered a contractual relationship between the user and provider. TradeSystem delivery and representation of quote requirements for any specific stock exchange are considered to be provided via the factory method. For Yahoo quotes, the following is currently provided: Last Trade:, Trade Time, Previous Close, Open, Bid, Ask, 1y Target Est:mates, Day's Range, 52 week range, Volume, Avg Volume 3 month, Market Capitalization, Price / Earnings ratio, Estimated Price Per Share, and Dividends / Yield. The Stock Chart provided within the quote panel is the smaller one of two provided and is intended for a quick glance on the stock's performance. It can be set for four periods: Week, Month, Six Month and One Year. Company News Headlines are also provided from Yahoo for the stock in question in the lower part of the Quote Panel. 16

17 Click for Chart button: The Chart Button provides a more reasonable chart for study. You can select durations week, month, 6 months one year or specific a date range. You can also Zoom into a specific area of a chart for a closer look - 17

18 Index Charting: There are ample market indexes to chart while providing access to their member lists too. All chart types are zoom-able, and provide cross-hair notes indicating time/date, price and when included, volume.. 18

19 FIX Market Order: The MFIX Market Order sub-system was built using quick-fix Java as its API. It has been tested using OpenFIX/TransactTools for certification. Using the FIX Market Order sub-system simply depends on the configuration you select that is noted earlier in the installation section of this manual. In addition to manually adding the stock symbol, as in the case of equities, illustrated on the right pane above, you can also point and click from the Watch List window to pass the symbol to FIX.. Interoperability is considered key to 'ease of use'. 19

20 The TradeSystem Forex Group Trade Manager ( TSGTM ) runs on anything Java,.and is made for Money Managers who want to manage sub-accounts through such methods as percent allocation. This is as opposed to just lot steps. TSGTM currently provides the means to perform Group Trade Rapid Order Execution by a Forex Money Manager using a single master account which represents the sub accounts. Trade allocation can be by individual percent(s) in addition to lots, equity and balance proportional allocation methods. The TSGTM operates in real time. It has five live functional panels: Accounts, Orders, Risk Analytic's, Charts, and Reports. Additionally there is a Currency Pair Market Rates window that is updated every second. The Forex Money Manager can manage all trading positions in real time and generate sophisticated master-detail reports. This is while being able to change from one allocation method to another by a single click. Cross Platform Portability: Using The MT4 Server Java API for Expanding the Retail Forex Market: Although TradeSystem-I supports FIX ( Financial Information Exchange Protocol ) Versions for connecting to ECNs and broker dealers. This is primarily for its institutional service offering. For retail trading of FOREX, the TSGTM is intended to use the MT4 Server Java API. 20

21 For the money Manager, TSGTM runs locally on a PC and remotely using a new IMac, Laptop, or even an enterprise application server. Currently the TSGTM can chart and perform group trades on a Solaris Unix workstation just because it has JRE6+ installed. Accounts Order Management: The Accounts Panel displays the activated sub accounts, and their real time balance, equity, leverage, margin, lot step, percent allocation, and profit. Like the other four GTMFX panels, the Accounts Panel has an easy to use functional interface where the Money Manager can see all information about his or her accounts. Allocation Methods are Standard Lot Allocation Method, or select Percent Allocation (PAM), or by Balance or Equity Proportional Allocation. If you highlight an account, then click percent, add the percent in, repeat the highlight/apply for each remaining account ; and then click convert, the allocation will be saved in the user records. ( Also via Meta Trade Manager you can see the allocation in the user records ). 21

22 Market Orders Panel: The Market Orders Panel provides easy access to current, pending and historical orders. It also allows you to modify and close, and also post new orders based on the selected allocation method. From the above panel, while observing positions in real time, The Forex Money Manager has the ability to, modify, and close existing trades, post new ones, and list pending, and historical trade orders. 22

23 Trade Sub-panel: Trading is made simple and easy The accounts which take part in the trade were enabled in the Accounts Panel. This makes it easy for the Money Manager to post a single group trade with the account distribution based on percent allocation.. Unlike the standard PC based Multi-Account Manager application, which only a very few limited retail FOREX brokers are permitted to offer out of the 50 worldwide that are competing for order flow, you can also still trade with Meta Quotes Multi-Terminal or with MT 4 Terminal on individual accounts. The TSGTM does not require MT4 server custom plugins, but instead allows one to also trade individually on the sub-accounts via other MT4 Terminal applications. The TSGTM searches primarily on Group Trade Orders, If a sub account were to alter its balance independently via other trading terminals, their percent allocation is accounted for in real time with respect to their balance. TSGTM group trades viewed through standard MT4 terminals are represented as individual account trade orders. This allows full accountability to be available from the Broker / Dealer to cross reference the Money Managers historical trade reports. odifying Orders 23

24 To Modify either individual or group orders, simply click on the individual trade order number, or group number, and then click the 'Modify' button Easy Order Closure : Closing trade orders can be performed on individual order, group order numbers, or just every one high lited.. Simply select them, and press the Close' button 24

25 Comprehensive Order History Order History is made easy and simple. Select a date from the Start Calendar and one from the End Calendar, and then the Account User ID. 25

26 Charting Made Simple:: Providing the needed tools for monitoring market positions, the Charts Panel provides up to the minute ticks for any traded currency pair. Chart Periods range from 1 Minute Charts to five Year. There are a number of different types of charts including line, dotted, candle stick, open-high-low-close, end even Forest. Current annotations provided are Moving Average, and Orion Bars. Orion Bars help predict the direction of the currency. Orion Bars consist of a Moving Average, and a Plus and Minus.5 or more in standard deviation for its low and high bar. Coupled with volume on a periodic cycle, it is easy to detect the short sell of EURUSD at the same time there is a long buy on USDCHF, And when just the opposite. The direction and volume are indicative of collective strategy, where Orion Bars indicate when to enter and exit the strategy. 26

27 Pop-Out Charts Charting is extensive with zoom and pop outs for concurrent comparison of currency pair performance.. conservative short sell exit point at the yellow line. The above pop-out chart indicates that there is greater volume ( short sell ) as the EURUSD descends in price. An extreme market exit trigger for a short sell exit on this chart is where the EURUSD is at its lowest below the yellow line, and where volume is at its highest. But this exit condition is considered high risk in being only available after the fact. This is why exiting the short sell at the point of the yellow line can offer a conservative boundary for trading. 27

28 Candle Stick: 28

29 Moving Averages ( Simple): Its always good to have a few screens, and quite a few of these window pop-out charts up and displayed to let you known what is what. 29

30 Some Other Chart Types: 30