Adaptive Order Type in Desktop

The Interactive Brokers Adaptive Algo order type combines IBKR’s Smart routing capabilities with user defined priority settings in an effort to achieve a better than average cost efficiency over a basic limit or market order. The Adaptive Algorithm achieves this by attempting to trade between the spread.

The Adaptive Algorithm is accessible in Desktop, Classic TWS, Mosaic, and Mobile. In Desktop the investor creates an order ticket then clicks on “Advanced” in the lower right-hand corner to bring up the Advanced Order Ticket window.

Once the Advanced Order Ticket window is up the investor can adjust the quantity. In the Description panel they choose between market or limit and then click on the Destination drop down and scroll to IBALGO and underneath choose the Time-in-Force.

 Next, they scroll down to the IBKR Algorithmic Trading section and select Adaptive from the list. Directly underneath is the Adaptive order priority /urgency selection box. The investor can choose Urgent, Normal, or Patient.

• The Urgent setting tells the algorithm to scan available prices that would fill the order quickest. This would provide the lowest chance of price improvement and price variance.
• The Normal setting is also the default setting and scans available prices less quickly than “Urgent” and provides a good chance of price improvement and average chance of price variance.
• The Patient setting provides the highest chance of price improvement and price variance by scanning prices slower than Normal.

Once they make their selection, they can either preview the order or click Submit.

The Adaptive Algo order type is designed to ensure that both market and aggressive limit orders trade between the bid and ask prices. And on average, this order type should lead to better fills.