I am currently experimenting with the Autospreader Function on Xtrader and am having a little difficulty understanding the concept of Slop. Sorry for sound completely ignorant but could someone offer an explanation on what it actually does and why it is useful? Thanks for the help in advance
I'm working from memory here as I haven't used tt in a few years, but it's basically how far you want to let prices drift from your target spread price before requoting the legs. Fuzzy here- but I remember inside and outside slop. Inside being a better spread price and outside being worse. This helps manage things like fill ratios where you can get penalized for excessive orders and losing your place in the order que when updating your price. So for example if you set inside slop to a few ticks and outside to 0 you are saying don't requote the legs if the spread price (not really the spread price but the other leg) ticks inside the target price, but requote as soon as the other leg moves outside your target price. So it's really creating a range of acceptable spread prices. Setting both to 1 tick means you're OK with a spread price 1 tick above or below your target. Hope that helps.
ahhhh I see said the blind man......... Actually That helped a lot. Its all come clear now. Thankyou very much.
My account manager at TT sent over an autospreader cheat sheet when we asked. Try that or ask on the tt user forum. They get back pretty quick when asked for stuff. have you tried inside smart quote?
Ive just figured out using basic/advanced slop. I think Ive got the basic concept of inside smart quote, but Im not sure exactly how it works....... Is it better than using the slop settings?