Suggestions Needed (Please)

Discussion in 'Automated Trading' started by Brock491, Sep 21, 2011.

  1. Brock491


    I am currently working on a price based algo for CL. It basically goes long or short at different levels or whole numbers. Originally, I was hoping I could go long or short within a two or three tick spread, but what I didn't take into account is the amount of slippage. (This is do to the market swaying in and out of the price levels causing multiple orders to be placed between the bid and ask). Has anyone out there encountered this problem? What can be done about reducing the amount of slippage? Any ideas or suggestions would be greatly appreciated.

    Thank You
  2. tim888


    Limit orders and whoever tell you of some other trick do not believe him.
  3. Brock491


    Thanks for the reply guys. I am thinking limit orders with some kind of volume or time restrictions is the way to go.