Some accounts at IB have access to additional algos?

Discussion in 'Order Execution' started by Humble Investor, Apr 13, 2017.

  1. Hi,

    I just realized some accounts at IB have access to 4 extra algos (CVGX, ITG, BTIG and FoxRiver algos) in addition to Jeff & CSFB algos which everyone has access to. So I was wondering how does that work?

    Thanks.
     
    hotfoot likes this.
  2. just21

    just21

    What sort of size do you have to do to make it worthwhile to use these algos?
     
  3. I usually don't route to exchanges anymore. I find Jeff algo's execution and price improvement far superior than IB's smart router or IEX. I trade 10k-20k blocks in illiquid small caps. Huge % of ADV is traded in dark pools. You definitely need these algos when you want to get in/out very quickly.
     
    khotso and freedinner like this.
  4. I'm interested as well in your question.

    BTW, which Jeff algos do you use?
     
  5. I use DarkSeek(DS) and Patience. IB's smart router is excellent for liquid/large cap stocks but not for illiquid/small caps.
     
    freedinner and Shadetree42 like this.
  6. Yeah, I'm in small caps a fair amt as well. Sometimes I use IBALGO's VWAP to piece out the order over time. Do Jeff's algo's place any pegged-to-mid orders for $0.05 tick names?
     
  7. Not sure about that but I think if you want to get filled at midpoint you should use CSFB's Crossfinder. It won't fill unless at midpoint or better. With Jeff I sometimes get filled at bid but most of the time at midpoint or better.
     
  8. @Humble Investor

    I see the fees are .003 for JEFF and CSFB algos. Is that all you pay in addition to IB comms + reg fees? Or do you also pay make/take fees that the algo incurs while getting you filled?
     
  9. It's not entirely clear. Using CS or Jeff algos will almost always cost significantly more in comm than IB's algos -- that much I know.
     
  10. luisHK

    luisHK

    I've tried the JEFF VWAP and the CSFB crossfinder , the later aiming at midpoint as it was suggested above, but without much success.
    Anyone can advice on the paramaters to enter to get a better chance at execution ?
    When buying shall I enter the ask price rather than the bid as the WOW price in Jeffalgos a,nd as the buying price in CSFB crossfinfer to get a better chance at execution, will there be any price improvement then or will the order just hot the ask for all shares offered ?
    I'm interested in both accumulating a position over 1 to 3 days as well as trading in or out in a rush (Jeff Blitz sounds like the proper candidate for that, but I really don't want to mess up the order and end up with a large market order which will wipe out the order book several points away - any tip related to Jeff Blitz will be most welcome)
    Talking about small cap stocks, also those with 0.05 minimum increments
    I've also used the accumulate/distribute order btw, so far it gave me better results than the Jeff and CSFB algos, but I'm pretty sure I missed how to use those properly.
    Also after entering a CSFB Crossfinder order, I received the following message from IB, I can't quite figure out how it is the same as a smart marketable order, and actually only got filled on 100 shares out of at least 10k I entered in the order :


    Dear Trader,

    For your convenience, we have identified algos and/or order types that provide comparable features to ones you have recently used and that may offer significantly lower fees.

    Algo Used
    Comparable Algo / Order Type
    CSFBALGO:CROSSFINDER+ SMART Marketable Order
     
    #10     Apr 26, 2017