Marketable orders generally result in a fast fill. Non-marketable orders may deliver a better price, but may take a long time to execute and may not even get filled. Enter the Adaptive Algo, the newest member of our growing IB Algo family. The Adaptive Algo aims to deliver the best of both worlds. By adapting to market conditions, it attempts to achieve the fastest fill at the best all-in price.
- Most useful when the spread is wide, but could also be helpful when the spread is only one tick.
- Works with any quantity. The adaptive order will automatically break large orders into smaller chunks to avoid overwhelming the market.
- Easy to use. Just set the buy/sell action and order quantity, then select the algo from the order types list.
It can be used as an Adaptive Market or Adaptive Limit order depending on your objective.
- Adaptive Market - Unlike a simple market order that hits the ask and fills (for a buy order), the Adaptive Market buy order dynamically selects and varies the price in an effort get a fill at best all-in price.
- Adaptive Limit - Works similar to the Adaptive Market order, but uses the limit price as a cap. Like a simple limit, the Adaptive Limit will only fill at the specified limit price or better.
The user can tweak the behavior of the algorithm by setting the urgency from the drop-down selector. The available choices are: critical, urgent, normal (the default) and patient.
Like all of our IB Algos, you can set up an Adaptive order in both the Mosaic and the Classic TWS interfaces. You select an IB Algo just as you would other order types, using the Order Type drop down list.
|