Advanced Desktop Order Types and Algorithms

A series of lessons walking through how to access and descriptions of the many Advanced order types and algorithms available on the IBKR Desktop platform.

The Trailing Stop order type allows investors to protect accumulated profits without limiting potential gains, striking an optimal balance between capital preservation and profit maximization by systematically implementing the "cut losses short and let winners run" principle without requiring constant monitoring or emotional decision-making.

Trailing Stop Limit orders combine the dynamic protection of trailing stops with the price control of limit orders, when the stop price is triggered, rather than executing immediately at market price, a limit order is submitted at the investor's specified limit price, providing protection against unfavorable executions during volatile market conditions while still allowing unlimited profit potential.

A Trailing Market if Touched orders create a dynamic entry mechanism that adjusts the trigger price as the market moves away from your desired entry direction, while keeping it fixed when the market reverses course. This sophisticated order type allows traders to potentially capture better entry prices during market movements without constant monitoring, automatically triggering a market order when the price reverses and touches the trailing trigger level.

The IBKR Trailing Limit if Touched order is a sophisticated entry strategy that creates a dynamic trigger price which follows the market as it moves away from your desired entry direction, remains fixed when the market reverses, and when triggered, converts to a limit order at a specified offset price—allowing traders to automatically pursue improved entry points while maintaining precise control over maximum execution price.

IBKR bracket orders are sophisticated trade management tools that automatically create stop-loss and profit-taking orders once an initial entry order is filled, allowing traders to predetermine both their maximum loss and profit targets. These conditional orders remain active until either the stop-loss or profit-taking price is reached, ensuring disciplined risk management without requiring manual intervention after the position is established.

Interactive Brokers' Adaptive Algorithm dynamically balances execution speed and price improvement based on user-selected priority settings (Urgent, Normal, or Patient), intelligently trading between the bid-ask spread to achieve superior execution quality compared to standard market or limit orders.

Interactive Brokers' Arrival Price algorithm executes orders targeting the bid/ask midpoint price from submission time, with customizable risk aversion levels and volume participation limits to minimize market impact for larger trades.

Interactive Brokers' Close Price algorithm breaks large orders into smaller slices executed near market close, minimizing price impact while targeting execution at or near the closing price. The algorithm offers customizable settings including maximum volume participation and risk aversion levels, making it ideal for investors who need to execute significant orders at the end of trading sessions without adversely affecting closing prices.

Interactive Brokers' Dark Ice algorithm enhances traditional Iceberg orders by randomizing the displayed order size based on price movement probability and strategically placing orders at limit price or one tick beyond current market levels, allowing traders to execute larger orders while keeping the majority of their size hidden from the market.

The IBKR Percentage of Volume algo allows the investor to participate in volume at a user-defined rate over the time selected for the order.

The Price Variant Percentage of Volume algo allows you to participate in volume at a user-defined rate that varies over the time selected depending on the market price of the security.

The Size Variant Percentage of Volume IB Algo is designed for executing large orders in U.S. and select non-U.S. stocks and futures by varying participation rates over time to minimize market impact. Investors can customize execution parameters such as initial and terminal target percentages, time windows, and price conditions to align with average daily volume and trading strategy.

IBKR's Time-Weighted Average Price (TWAP) algorithm strategically slices large orders into smaller components executed at regular intervals throughout your specified timeframe, delivering execution prices that closely track the market's time-weighted average while minimizing market impact and providing precise control over trading pace and completion timing.

The Time Variant Percentage of Volume algorithm enables strategic participation in market volume through customizable, time-varying execution rates. By defining distinct target percentages for both start and end times, the algorithm dynamically adjusts its participation throughout your specified period—allowing you to front-load aggression that gradually decreases, implement a progressive approach that intensifies toward completion, or create any custom participation curve that aligns with your specific trading objectives.

Interactive Brokers' Best Efforts VWAP algorithm dynamically executes orders with the goal of achieving the Volume-Weighted Average Price over a specified time period. This algorithm balances execution urgency with price optimization, slicing larger orders into smaller components distributed throughout the trading window while continuously monitoring volume patterns to adjust execution timing and minimize market impact.