What is a Price Variant Percentage of Volume Strategy Algo

The profitability of an option strategy is simply the return the investor receives from executing or closing the strategy, minus the options premium price paid or received when the position was opened, plus any fees or commissions paid¹. The value of an option depends on multiple factors including the current market price of the underlying security, strike prices of the options, distance between the strike price and the current underlying market price of the underlying, expected dividends, time until the options expire, and the Implied Volatility, which is the standard estimate of the future volatility of the underlying security’s price over the life of the option…

To create complex orders and algo orders using IBot, simply ask IBot to create the desired order type. For example, type "Create a percent of volume order for Apple." Then follow the prompts to have IBot configure the order for you. Review and modify the order parameters as needed, then tap "Submit Order" to complete…

Size Variant Percentage of Volume Strategy - This algo allows you to participate in volume at a user-defined rate that varies over time depending on the remaining size of the order. Define the target percent rate at the start time (Initial Participation Rate) and at the end time (Terminal Participation Rate), and the algo calculates the participation rate over time between the two, based on the remaining order size. This allows the order to be more aggressive initially and less aggressive toward the end, or vice versa. Let's look at a series of examples to explain how the order may a) achieve its objective roughly in line with the desired life of an order, b) fill quickly without reaching its terminal rate and c) experience a partial fill. Note that all three examples use the above assumptions of 6.5 ADV and on average, trading of approximately one million shares/hour…

Time Variant Percentage of Volume Strategy - This algo allows you to participate in volume at a user-defined rate that varies with time. Define the target percent rate at the start time and at the end time, and the algo calculates the participation rate over time between the two. This allows the order to be more aggressive initially and less aggressive toward the end, or vice versa…