COPY
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`Trading Technologies International, Inc.,
`
`V.
`
`Ninja Trader, LLC,
`
`Plaintiff,
`
`Defendant.
`
`)
`)
`)
`)
`)
`)
`
`)
`)
`)
`)
`
`Civil Action No. 05 C 3953
`
`Judge Der-Y eghiayan
`
`Magistrate Judge Keys
`
`CONSENT JUDGMENT
`
`As a result of settlement of this action by virtue of a confidential settlement
`
`agreement between the parties dated July 7, 2005 which shall become effective upon
`
`entry of this Consent Judgment and upon consent of Plaintiff, Trading Technologies
`
`International, Inc. ("TT") and Defendant, Ninja Trader LLC ("NINJATRADER"),
`
`judgment is hereby entered against NINJATRADER upon IT's Complaint, and it is
`
`hereby ORDERED, ADJUDGED, and DECREED that:
`
`I.
`
`TT commenced this action for patent infringement against NINJA TRADER on
`
`July 7, 2005. This action alleges that NINJATRADER infringes U.S. Patent Nos.
`
`6, 766,304 ("' 304 patent") and 6. 772,132 ('" 132 patent"). NINJA TRADER has received
`
`and reviewed a copy of the Complaint filed by TT in this action.
`
`429754-1
`
`1
`
`TT0050559
`TTX00050559
`
`TRADING TECH EXHIBIT 2065
`TD Ameritrade v. Trading Technologies
`CBM2014-00135
`
`Page 1 of 15
`
`

`

`2.
`
`This Court has jurisdiction over the parties to this action and over the subject
`
`matter of the Complaint.
`
`3.
`
`TT is the sole and exclusive owner of the '304 patent and the '132 patent, and has
`
`the right to sue upon, and recover damages for past infringement and enjoin future
`
`infringement of the '304 and '132 patents.
`
`4.
`
`5.
`
`All claims of the '304 and '132 patents are valid and enforceable.
`
`NINJA TRADER has infringed the '304 and '132 patents under 35 U.S.C. Section
`
`271 by making, using, selling, offering for sale, importing, and/or otherwise distributing
`
`electronic trading software incorporating the NINJA TRADER SuperDOM screen,
`
`screenshots and documentation of which are included in Exhibit 1.
`
`6.
`
`Defendant NINJA TRADER, its officers, directors, partners, members, affiliates,
`
`subsidiaries, assigns, and successors-in-interest are hereby permanently enjoined (unless
`
`expressly permitted by TT) during the terms of the '304 and '132 patents from infringing
`
`the '304 and '132 patents, including, without limitation, by the making, using, selling,
`
`offering for sale, importing, facilitating connectivity for and otherwise distributing in the
`
`United States the electronic trading software products referred to in paragraph 5 above
`
`(and substantially similar products) including, without limitation, for use in electronically
`
`trading any item (e.g., futures, options, equities, fixed-income products, etc.).
`
`7.
`
`TT wmves its rights to damages from NINJATRADER arising from the
`
`manufacture, use, sale or offers to sell, importation and/or other distribution of the
`
`429754·1
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`2
`
`TT0050560
`TTX00050560
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`Page 2 of 15
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`

`

`electronic trading software products referred to in paragraph 5 above prior to entry of this
`
`Judgment.
`
`8.
`
`This Court shall retain jurisdiction over this case for purposes of enforcing the
`
`Consent Judgment and the confidential Settlement Agreement between the parties
`
`pursuant to which the Consent Judgment is filed.
`
`9.
`
`Each party shall bear its O"-TI costs and attorneys' fees.
`
`429754·1
`
`3
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`TT0050561
`TTX00050561
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`Page 3 of 15
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`

`

`SO ORDERED
`Dated: .:Jvnc.. /'I, ].Pti.5
`
`AGREED TO:
`
`Dated:___:_7_.tc___#f-f-t?_5 __
`
`Dated:_7_,_0_e'--0_o_~ __ _
`
`~~/
`
`LeifR. Sigmond, Jr. (ID No. 6204980)
`Matthew J. Sampson (ID No. 6207606)
`McDonnell Boehnen Hulbert & Berghoff LLP
`300 South Wacker Drive
`Chicago, IL 60606
`Tel.: (312) 913-0001
`Fax: (312) 913-0002
`
`Attorneys for Plaintiff
`TRADING TECHNOLOGIES
`INTERNATIONAL, INC.
`
`Steven Petersen (ID No. 6196793)
`Leydig, Voit & Mayer
`Two Prudential Plaza- 180 N. Stetson Avenue
`Suite 4900
`Chicago, Illinois 60601-6780
`Tel: (312) 616-5600
`Fax: (312) 616-5700
`
`Attorneys for Defendant
`NINJA TRADER, LLC
`
`429754-/
`
`4
`
`TT0050562
`TTX00050562
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`Page 4 of 15
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`

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`1
`
`TT0050563
`TTX00050563
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`Page 5 of 15
`
`

`

`5763
`969
`1187
`1669
`1365
`573
`
`100
`
`1202.25
`1202.00
`1201.75
`1201.50
`1201.25
`1201.00
`1200.75
`1200.50
`1200.25
`1200.00
`1199.75
`1199.5
`1199.25
`1199.00
`1198.75
`1198.50
`1198.25
`1198.00
`1197.75
`1197.50
`1197.25
`1197.00
`1196.75
`
`1454
`1613
`3187
`1133
`1420
`8807
`
`POSll !ON
`
`01 y
`
`PIL
`
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`Instrument Position Strategy
`
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`jES()9.{~ I
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`
`TT0050564
`TTX00050564
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`Page 6 of 15
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`

`

`SUPERDOM
`
`The SuperDOM window (SW) provides complete functionality for the management of a position strategy in a highly visual and
`efficient manner. The SW is one of two available position strategy management windows (the other being the Basic Entry window
`(BEW)) where you will spend most of your time using NinjaTrader. The SW and BEW share one common trait, the 'Position Strategy
`Parameter Tabs' (bottom third of the SW and BEW) are identical. This provides consistency when defining your strategy positions.
`
`Important!
`Before continuing any further through this section of the User's Guide, you should review the section on 'Position Strategies' to gain
`a clear and thorough understanding of the difference between them and a positions.
`
`Topics in this section
`Modifying Entry And Scale Orders
`Modifying Stop Loss And Profit Target Orders
`Managing An Open/Pending Position
`The Info Button (Displaying Running Position Strategies)
`Right Mouse Click Context Menu
`
`The Price Ladder Display
`Position And Position Strategy Display
`Selecting Instruments And Position Strategies
`Placing Entry And Scale Orders
`Placing Breakout/Fade Orders
`
`The Price Ladder Display
`
`G:::lwatch Video Tutorial: SuperDOM Layout
`
`Columns
`The price ladder is broken down into three columns. The left column (referred to as the 'BUY' column) is used to place/modify buy
`orders and to display market depth on the BID side. The center column (referred to as the 'PRICE' column) is used to modify stop
`loss/profit target orders, display instrument price levels and the current inside market. The right column (referred to as the 'SELL'
`column) is used to place/modify sell orders and to display market depth on the ASK side.
`
`The Inside Market
`The inside market is displayed as follows:
`
`BID - Default is bold dark blue
`ASK- Default is bold forest green
`LAST- Price box default highlight color is yellow
`BID depth size- Displayed in the corresponding price rows 'BUY' column
`ASK depth size - Displays in the corresponding price rows 'SELL' column
`LAST trade size -A size marker (box) is displayed to the nght of the 'SELL' column with a value representing the number of
`contracts traded at that price
`Cumulative Depth - The bottom integer value in the BUY column and the top integer value in the SELL column represent cumulative
`depth sizes
`
`•superDOM colors are completely user definable via the 'Settings Manager'
`.. Depth display is optional and can be toggled via the right click mouse menu. When disabled, only the best BID/ASK size will
`display
`
`Adjusting The Price Ladder Display
`Move your mouse into the price ladder and use the mouse scroll wheel to scroll up or down. You can also press the 'C' button to
`center the last traded price.
`
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`TTX00050565
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`Page 7 of 15
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`

`

`PRICE LADDER DISPLAY
`
`0
`83]
`Stop Strategy
`Instrument Position Strategy
`il \YM STANDA(~]
`IYM Q~ ~ IYM 2CARS
`Enby I Stop ! Quick Buttons I Rev....., & Shadow I
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`Entry
`. CIT
`Chase
`
`Target CIT
`• SE
`Pos Type
`Naked
`Chase Umit
`Contracts
`Stop Onl)' ~
`±JfD
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`Stop/1T
`kcount
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`Time Stop
`• Stop12T
`~~
`±J \DAY ~ ~~8121
`Stop/ 3T
`Stop Loss
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`j1c
`:±JJl
`Umit Offset
`T1 Profit
`T2 Profit
`:±JjlD
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`±J 110
`
`:±J
`
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`Page 8 of 15
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`

`

`Position And Position Strategy Display
`
`Your account position is displayed at the top of the middle column (orange highlighted box) while position strategy information
`(turquoise highlighted box) is displayed below the price ladder. For the most part, the size values (in this example 1 contract is
`shown) will be identical but for advanced users, these numbers could be different because you could have a situation where you
`have two active position strategies. One managing 1 contract, the other managing two which of course would give a total of 3
`contracts in your account and be reflected at the top of the middle column.
`
`TR
`BE
`ss
`CIT
`RT
`RS
`
`1
`
`-2.00
`
`Instrument Position Strategy
`~ !
`IEs 12-iJI
`
`Stop Strategy
`
`iJ
`
`Selecting Instruments And Position Strategies
`
`Selecting/changing strategies will update the parameters in the 'Position Strategy Parameter Tabs'.
`
`Instrument- Changes the active SuperDOM instrument. You can select the 'STOCK' instrument if you wish to request data/trade an
`equity instrument. When selected, a prompt will ask you to enter a stock symbol.
`
`Position Strategy- Selecting a position strategy will update the 'Position Strategy Parameter Tabs' with the associated parameters
`of the selected strategy
`
`Stop Strategy- Selecting a stop strategy will update the 'Stop' tab in the 'Position Strategy Parameter Tabs' with the associated
`parameters of the strategy
`
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`

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`Placing Entry And Scale Orders
`
`~Watch Video Tutorial: Placing Orders In The SuperDOM
`
`Ninja Trader defines orders in several categories. Within the SW, you can place and manage the following order categories:
`
`Entry Orders- Orders that initiate a position strategy once filled
`Scale Orders- Orders that add/subtract contracts/shares from an open position strategy
`Stop Loss/Profit Target Orders
`
`Entry and Scale orders are manually placed while Stop Loss and Profit Target orders (for the most part) are automatically submitted
`by Ninja Trader once an Entry order has been filled.
`
`The following mouse conventions are used:
`
`Left Click- Places LIMIT orders
`Middle Click - Places STOP orders
`Middle Click+ CTRL Key- Places STOP orders
`
`'The SuperDOM has as STOP order type default (el!her STOP LIMIT or STOP MARKET), this can be toggled via the right mouse
`click context menu. If STOP LIMIT is default, then middle click will place STOP LIMIT order while middle click + CTRL key
`combination will place STOP MARKET order. The inverse is true ifthe SuperDOM STOP order type default is STOP MARKET.
`"Middle mouse button usually refers to pressing down on the scroll wheel of your mouse
`
`The SuperDOM allows you to place a maximum of two Entry orders (using the breakout/fade entry mode which must be enabled via
`the right mouse click context menu) and a maximum of two scale orders while a position is open.
`
`To place a LIMIT order, left click in the appropriate 'BUY' or 'SELL' column at the price level you wish the order to be submitted. A
`cyan colored box will appear with the letters 'LMT along with a size marker to the left of the 'BUY' column. The size marker color will
`change to reflect the current status of the order. The image to the right illustrates a BUY LIMIT order at 1144.50 for 1 contract
`
`To place a STOP LIMIT order (assuming default stop order type is STOP LIMIT), middle click in the appropriate 'BUY' or 'SELL'
`column at the price level you wish the order to be submitted. A violet colored box will appear with the letters 'SLM' along with a size
`marker to the left of the 'BUY' column. The size marker color will change to reflect the current status of the order. The image to the
`left illustrates a BUY STOP LIMIT order at 1145.75 for 1 contract.
`
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`

`

`To place a STOP MARKET order (assuming default stop order type is STOP LIMIT), middle click while holding the CTRL key down
`at the price level you wish the order to be submitted. A pink colored box will appear with the letters 'STP' along with a size marker to
`the left of the 'BUY' column. The size marker color will change to reflect the current status of the order. The image to the right
`illustrates a BUY STOP MARKET order at 1146.25 for 1 contract.
`
`You can also place orders using the buttons on the 'Quick Buttons' tab of the 'Position Strategy Parameter Tabs' .
`
`11" 1
`
`STf>
`
`333
`
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`1146.50
`1146.25
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`
`558
`
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`
`Placing Breakout/Fade Orders
`
`G:lwatch Video Tutorial: Breakout/Orders
`
`Breakout/Fade orders is where you can place two entry orders as an OCA pair. This means that once one order is filled, the other
`order will be automatically cancelled. There are several breakout/fade order combinations available:
`
`Break- Order pair consisting of one BUY STOP order and one SELL STOP order
`Fade- Order pair consisting of one BUY LIMIT order and one SELL LIMIT order
`Break/Fade Buy- Order pair consisting of BUY LIMIT and STOP orders
`Break/Fade Sell- Order pair consisting of SELL LIMIT and STOP orders
`
`You must first enable breakout/fade mode by selecting the 'Breakout/Fade Entry Mode' via the right mouse click context menu as
`per the image to the below
`
`717
`22
`
`6
`
`1145.00
`1144.75
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`
`TT0050569
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`Page 11 of 15
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`

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`You can then place the breakout/fade order combination. The image on the left illustrates a Fade order pair combination.
`
`Modifying Entty And Scale Orders
`
`To modify an order price. use the same mouse button used to place the original order and click on a new price in the same column
`the order currently resides. You can also modify order contract size by clicking on the size marker.
`
`Left Click - Increments the order size
`Middle Click- Decrements the order size
`
`The order size is modified by the 'Size Adjust Value' which can be toggled via the right mouse click context menu.
`
`Modifying Stop Loss And Profit Target Orders
`
`Once a position has been established, the SW will display your entire position by color coding rows where your stop loss and profit
`target orders exist. The image to the right illustrates a position that has three targets (green shaded rows) and a 'stop loss order
`(red colored row). The position's average entry price is highlighted by the brown colored price box. Each stop and target has an
`associated size marker (to the left of the 'BUY' column) displaying the number of contracts for each order.
`
`*From a trader's perspective, there is only one stop loss however, in reality, the stop loss is made up of three separate stop orders
`11? this example. Each profit target order is OCA paired with a stop loss order. Although there are three stop orders, Ninja Trader
`combines them into one red row for display purposes.
`
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`

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`To modifying stop loss and profit target order prices click in the center 'Price' column. Clicking in the price column on the BID or
`above when long will adjust your profit target order prices, below the BID will adjust stop loss order prices. Clicking in the price
`column on the ASK or below when short will adjust your profit target order prices, above the ASK will adjust stop loss order prices.
`
`Left Click - Modify either stop loss order or closest profit target
`Middle Click- Modify second closest profit target order
`Middle Click + CTRL Key- Modify third closest profit target order
`Left Click + CTRL Key- Modify all profit target orders to the price that is clicked on
`
`You can modify profit target order prices so that two or more orders rest at the same price. The SuperDOM will combine the order
`display in the same manner as it does for stop loss orders however, all three order remain active. In other words, profit target orders
`do not combine into one order. This allows you to preserve independent order FIFO advantage.
`
`To modify stop loss or profit target order sizes click on the appropriate orders size marker.
`
`Left Click - Increments the order size
`Right Click - Decrements the order size
`
`Since a position strategy has built in intelligence, there will be cases where you can not modify an order's size. For example, if you
`have three profit targets with a total position strategy size of three contracts (one contract per profit target order) you can't modify the
`profit target order sizes since there is no 'excess' contracts to move around. In the same scenario, if you had a total position strategy
`size of four contracts, you could move the fourth contract from one profit target to another.
`
`Add/Remove Targets
`At any time, you can add or remove a target from your position strategy via the right mouse click context menu.
`
`Managing An Open/Pending Position Strategy
`
`~Watch Video Tutorial: Managing Positions
`
`Reverse- Closes the current position strategy and opens a new position strategy in the opposite direction. The new position
`strategy is created based on the current parameters set in the 'Position Strategy Parameter Tabs'.
`
`Cancel- Cancels any pending Entry or Scale orders.
`
`Close- Closes the current open position strategy.
`
`In the image above right we have a LONG position of three contracts. Auto Trail (TR) and Auto Breakeven (BE) are currently
`enabled since they are highlighted in green. The label column are position strategy automation features. By clicking on them, you
`can enable or disable these features. It is important to note that the position size displayed is the size of the position strategy and
`not your total NET position. For most cases, this value will be the same however, there are times where you may have a total NET
`position of 5 contracts but only 3 are managed via a strategy.
`
`TR - Enable/disable auto trail.
`
`BE- Enable/disable auto breakeven.
`
`SS- Enable/disable simulated stop loss and entry. When a position
`strategy is pending it will display 'SE' for simulated entry, when a position
`strategy is open it will display 'SS'.
`
`CIT- Enable/disable auto chase. While a position strategy is pending, clicking this with your middle mouse button will change the
`auto chase type between Chase If Touched {CIT) or Chase (CH).
`
`RT- Enable/disable auto reverse at target
`
`RS- Enable/disable auto reverse at stop
`
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`

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`The Info Button (Displaying Running Position Strategies)
`
`By clicking on the top middle button (which shows the account position) a menu will become available that provides position and
`position strategy management features. Different menu options will appear dependant on the current state of the SuperDOM,
`selected instrument and account.
`
`The menu will show all running position strategies for the selected instrument/account combination as well as a sub menu for other
`running (different instrument/account combinations) position strategies. The currently displayed position strategy will have check
`mark in front of it. If you have multiple position strategies running, you can select any one of them to set it as the currently viewed
`position strategy in the SuperDOM. You can do the following from this menu -
`
`New Position Strategy- Will reset the SuperDOM display to a state where it is ready for you to enter a new strategy (entry orders).
`The currently displayed position strategy will still be running in the back ground.
`
`Flatten Position- This will cancel all open orders and remove an active position strategies and then send a market order to flatten
`the account/instrument combination.
`
`Create Position Strategy- There may be situations where you have an open position but no position strategy to manage it. In these
`cases, you may want to create a position strategy to protect this position. Set all of the parameters (number of stops and targets and
`their respective values) and then select the this option.
`
`Net Position: LONG I
`
`New Posibon Strategy
`Flatten Posibon
`
`Running Posobon Stralegtes:
`
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`

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`Right Mouse Click Context Menu
`
`Always On Top- Enable/disable the SO window to be on top of other windows
`
`Cash P/L- Enable/disable display of cash vs point based profit/loss
`
`Show Depth - Enable/disable market depth display
`
`AutoCenter- Enable/disable automatic re-centering of last traded price once it trades outside the visible price range
`
`Cancel All Orders- Will cancel all active orders system wide
`
`Close All Position Strategies- Close all open position strategies and cancel any remaining associated orders
`
`Flatten Everything- Closes all open position strategies, cancels any rema'1ning associated orders and flattens an open positions that
`were not being managed by a strategy
`
`Disable Time Stop- Enable/disable position time stop if one was used when initially enter a position strategy
`
`Size Adjust Value- Changes the value used when modify contract sizes
`
`Stoplimit As Default- Entry and Scale orders will use this order type when clicking the middle mouse button
`
`Breakout/Fade Entry Mode- Enable/disable breakout/fade entry mode tor placing dual entry orders
`
`Automated Trading - Enables/Disables display features for Automated Trading
`
`Add Target- Adds a target limit order to an existing position strategy
`
`Remove Target- Removes a target limit order from an existing position strategy
`
`Active Account Group- This section of the menu will only display if user defined account groups exist
`
`Always On Top
`Cash P!l
`., Show Depth
`v Autoeenter
`
`Cancel All Orders
`Close All POS!bon Strategies
`Flatten Everything
`
`Size AJjjust Value
`., Sloplimit As ll<!fault
`Breakout,/Fade Entry Mode
`
`•
`
`Add Target
`Remove Target
`
`Active Account Group ·
`: _, None
`Demo Group
`
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`Page 15 of 15
`
`