Question

How does a Limit Chase algorithm work?

Answer

A Limit Chase algorithm places a limit order at a user-defined Chase Distance away from the prevailing best bid or offer.

A Limit Chase algorithm places a limit order at a user-defined Chase Distance away from the prevailing best bid or offer and continually adjusts its price to ensure that it is within the maximum Chase Distance from the best bid or offer.

Selecting a Chase Distance of 0% will match the prevailing best bid or offer price.

Note that for BUY orders the limit price will only be adjusted HIGHER to remain within the maximum Chase Distance. For SELL orders the limit price will only be adjusted LOWER to remain within the maximum Chase Distance.

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