Program trading and waves

Discussion in 'Trading' started by andread, Aug 15, 2007.

  1. andread


    There is something I read on the WSJ I can't quite understand:

    Shares recovered a bit, but fell again in the afternoon, which Todd Clark, director of trading at Nollenberger Capital Partners, said was probably due to program trading because it seemed to be "coming in waves."

    What would the relation between "coming in waves" and program trading be? Any idea?
  2. Large buy program ...
    Large sell program....
    Large buy program...
    Large sell program...

    Getting seasick.
  3. andread


    you mean that a program would sell/buy big amounts of whatever asset in a short time?
    Doesn't look very efficient to me. I would expect a program to look at the VWAP.
    Well, it's an explanation. Thank you