Orders Tied To The Bid/Ask

Discussion in 'Order Execution' started by optionstrader2022, May 8, 2024.

  1. Interesting... How did someone joining the bid mess up his order?
     
    #11     May 8, 2024
  2. Robert Morse

    Robert Morse Sponsor

    It is not an algo, but you can start with one limit, then increment or decrement the price in penny, nickel, dime or quarter levels. They can be color coded.
    upload_2024-5-8_12-24-55.png
    upload_2024-5-8_12-28-4.png



     
    #12     May 8, 2024
    optionstrader2022 likes this.
  3. 2rosy

    2rosy

    his bid went up and up and up wanting to be best bid then was hit. it was a while ago in an illiquid market. Also, heard stories about people putting in best bid, getting market data and not realizing they are they bid so penny it and so forth; again a while ago, lessons learned.
     
    #13     May 8, 2024
  4. ajacobson

    ajacobson

    Schwab/TD walk limit, but I assume others offer it.
     
    #14     May 8, 2024
  5. better - what happens if there are two different accounts running this? :D
     
    #15     May 8, 2024
  6. 2rosy

    2rosy

    yes, like outbidding yourself. or mixing up bid/offer (saw that as spectator). My favorite sending in a buy hedge for around 1000 shares but sending in 1000 1 share orders; the prime broker stopped it which was nice
     
    #16     May 8, 2024
  7. schizo

    schizo

    They say it works for options, but you'll need to find out for yourself. As for your other question, I believe your order will move up or down depending on the offset you specify until it gets filled or turn into a limit order.

    upload_2024-5-8_14-15-38.png

    IB also has an "adaptive algo" that seems to do the same thing. (If you ask me, there are way too many damn order types. :D)
    https://www.interactivebrokers.com/en/trading/orders/adaptive-algo.php

    Also check out "walk limit order" mentioned by @ajacobson above.
     
    #17     May 8, 2024
  8. Occam

    Occam

    Won't that potentially cause you to go over the 390 orders/day average and thereby becone a "professional" and lose retail priority and/or your accouny (if the broker can't handle this situation)? I don't know how these dynamic order types work, but I am guessing that if they are broker implemented, the exchanges will treat each update as a separate order, and the number of NBBO price/size changes per day on many options contracts is in 1000's+ per day (even for some that never trade). Would like to be proven wrong on this if anyone else has definite knowledge, thanks!
     
    #18     May 8, 2024
  9. Well, today I found that 1 minute has 100 seconds and we are talking about a world-class framework that costs thousands of dollars per month. So nothing surprises me anymore.
     
    #19     May 8, 2024
  10. ajacobson

    ajacobson

    "Won't that potentially cause you to go over the 390 orders/day average and thereby becone a "professional" and lose retail priority and/or your accouny (if the broker can't handle this situation)? I don't know how these dynamic order types work, but I am guessing that if they are broker implemented, the exchanges will treat each update as a separate order, and the number of NBBO price/size changes per day on many options contracts is in 1000's+ per day (even for some that never trade). Would like to be proven wrong on this if anyone else has definite knowledge, thanks!"

    You lose customer status. It only gets worse from there.
     
    #20     May 9, 2024
    Occam likes this.