Have you ever seen an algorithm improve its order in an illiquid asset and watch the market follow?

Discussion in 'Options' started by Error Correction Funder, Apr 2, 2018.

  1. It was interesting and slower than I expected when I first saw one.

    The types of options I used to trade were situations when the ask was 2x to 3x the bid. Before I was about to buy one, all of the sudden, the bid was rising by the minimum tick for what looked like a few ticks per second. The total bid size was high and fluctuating the entire time.

    It could have been multiple algorithms all more or less operating the same way and/or matching the lead bid since the leading algorithm had already tested that price.

    It must have not liked how high the market was willing to sell, so it stopped. I watched it for a little longer, gave up, and started working my order.