The Allocation Explorer is a free tool to demonstrate Theorem's allocation algorithms and methodologies in a sandboxed environment.
For FAQ about allocations in general, see our Allocation FAQ.How do I use it?
Do I need to register or create an account?
What are the key concepts behind the Allocation Explorer ?
Who can use the Allocation Explorer?
How does it work?
What are scenarios?
Where do the allocation results go?
What are the limitations of the Allocation Explorer?
How do I use it?
- Go to the Allocation Explorer landing page
- Registered users: Go to Home \ Explore \ Allocations
- Without registration: Go to beta.theorem.io/explore
- Click Open Explorer
- The Allocation Explorer box will appear.
- Set up your Aliases, Shares, enter Fills, and adjust Settings.
- Click the Allocate button to see results.
- Click the Save button if you want to visit the Explorer another time with the same settings.
- Click the X button in the upper right corner to close the Explorer
While inside the Explorer Window, press the Help icon to launch our Allocation Window knowledge article.
Do I need to register or create an account to use the Allocation Explorer?
No. The Allocation Explorer is a free tool that is open to registered and unregistered users. You don't need to provide any personal information to use the tool and nothing is stored on our servers.
The tool has a few modest limits on the number of accounts, fills, and product symbols that can allocate at one time that do not apply to registered users.
What are the key concepts I should know?
A fill is a trade that has been executed.
Example of a Fill
Buy 50 @ price 205, Buy 50 @ price 215 for total of Buy 100
An alias is a part of a group where the objective is to share profits and losses in the group proportional to each alias' share percentage of the group. In real-word scenarios, an alias is usually an account or a shareholder.
All of the aliases must equal 100% and we refer to these as shares.
Example of Shares with Two Aliases
Alias "A" 40% and Alias "B" 60%
An allocation occurs when we apply the fills to the aliases. Every time we allocate, we apply one allocation method that defines how the prices are assigned to each alias.
Allocations by Allocation Methods
| Method | Alias A | Alias B |
|
Low to High Lowest price to first account |
40 @ 205 |
10 @ 205 50 @ 215 |
|
High to Low Highest price to first account |
40 @ 215 |
50 @ 205 10 @ 215 |
|
Average Price (APS) One weighted average for all |
40 @ 210 | 60 @ 210 |
|
Best Fit (BF) Determine proper combination to arrive at fair allocation |
20 @ 205 20 @ 215 |
30 @ 205 30 @ 215 |
For more information, see Trade Price Allocation Methods.
Who can use the Allocation Explorer?
The tool is open to anyone, but might be especially useful for:
- Traders and Fund Managers that want to learn how advanced algorithms can keep the accounts they trade equitably balanced.
- Emerging Managers and Pool Operators that need insight on trade allocations and how to scale up.
- Established Managers, COOs, and PMs that are looking to automate or reduce operational risk in the process.
- Middle Office Managers that need help streamlining their existing allocation process.
- Operational Risk or Due Diligence Managers looking to evaluate and compare different allocation methodologies.
How does it work?
The Allocation Explorer operates as a sandbox.
- Use Scenarios. Select a scenario to use and our explorer will open with fills, aliases, and incoming positions relevant to that scenario. You can use the explorer to see the results, and change around the settings to see how our allocation system responds.
- Enter Your Own Data. Create your own aliases and define their percentage share of the group. Create your own fills in the fill window (or use the generate button to create random trades).
- Save and Continue. While in the Allocation Explorer, press the Save button to store everything you see to your local browser. The next time you visit, choose Continue to see where you left off.
What are allocation scenarios?
A scenario is a pre-loaded problem, issue, or use case that many people experience. Instead of using our Allocation Explorer to type in specific trades and aliases, loading a scenario allows you to just see the results of that scenario.
One a scenario is loaded, you are fee to change any settings in the Explorer window.
Can I use my own scenario?
Yes. Allocation scenarios are optional. You can start the allocation explorer with no fills or accounts and enter in everything yourself if you prefer.
Where do the allocation results go?
Nowhere. The Allocation Explorer is a sandbox designed to preview how Theorem's Trade Viewer works without being connected to any upstream or downstream data. The results are not sent anywhere and only saved to your local browser if you press the Save button.
In Theorem's Trade Viewer production mode, your allocation results can be configured to be sent to your executing and clearing brokers for trade workflow purposes and the resulting allocations are saved in the Trade Viewer so they can be verified as properly booked.
What are the limitations of the Allocation Explorer?
Our tool uses the same algorithms that our full featured app uses for registered users. The Explorer is different compared to the Trade Viewer app in these ways:
| Feature | Full Version | Allocation Explorer |
| Fill Size | No limit | 2,000 lots or fewer |
| Accounts (Aliases) | Up to 250 | 5 or fewer |
| Symbols | Allocate actual product symbols, such as NGM30 (June 2030 Natural Gas Futures), using the product code or name | "Symbol 1" and "Symbol 2" only as generic place holders |
| Allocate at Once | Allocate any or all unallocated trades at the same time | One symbol at a time |
| Data Entry for Fills |
Manual Entry File Uploads Automated Data Pipelines |
Manual Entry Random Fill Generation |
| What happens after allocation |
Send allocations to brokers or counterparties Match allocations with cleared trades |
Nothing - Evaluation Only |