how to buy stocks/cryptocurrency to avoid push price?

Discussion in 'Trading' started by cf0532, May 1, 2022.

  1. cf0532

    cf0532

    Sometime I want to buy a big volumne of some stock/cryptocurrency, if I use "market orders", its price would be push a lot and even if I use limit order, I also should suffer a loss for these trading;
    so what is a goog method to avoid pushing price in this situation?
     
  2. what??

    some brokers have mid price
     
    Last edited: May 1, 2022
    murray t turtle likes this.
  3. Be very clever. I've been creating and testing algorithms for this for 2 years and have made some slight progress. The answers are not intuitive. Practically no one is willing to share what they have learned about getting the most efficient order fills. A simple "mid price" order won't do it. The game is much more complex.
     
  4. ValeryN

    ValeryN

    Pick a more liquid instrument or/and non-POF broker/offering.

    Don't over complicate things for yourself. There is no magic algorithm to solve this problem.
     
    murray t turtle likes this.
  5. There is, actually. If done right the solution even generates gains. That's what market making is all about.
     
  6. It is normally done by using an API. It would need to create chunks of the final size and ask your broker to fill them at the same time it is watching the price.

    IB has something similar for it, already developed:

    https://ibkr.info/node/1006
    https://ibkr.info/node/1005

    If you ask a software developer to replicate it for your broker you might get the same result.
     
  7. maxinger

    maxinger

    simply stop trading illiquid stocks.

    then you don't have to worry about pushing up and down thing.
     
    murray t turtle likes this.
  8. But, but, but... there is one issue with not chasing small/micro cap runners up in the morning: It will be very hard to make money.
     
  9. No one ever loses chasing those. I checked. 98% of all posts claim a giant score, and the losers are always pennies.
     
  10. %%
    Good points;
    limit orders [ /\ ]price ladders. My comments only apply to liquid stocks /ETFs, not any kind of crypto............................................................
    And dont limit any kind of limit orders to one day.
    Reminder to me + op cf0532 trader= double check stuff also; ''goog method'' is not the same thing as good method:caution::caution:
     
    #10     May 2, 2022