Beatrice Minchow designs and implements algorithmic trading strategies for Enlightenment Era Partners LLC (EEP). Minchow is working with Portfolio Manager James Bean on an algorithm to implement a sell order for Bean’s small position in the lightly-traded shares of public company Dynopax Inc. In a conversation with Minchow, Bean states the following:
- I have no expectations of adverse price movements during the trade horizon and would like to use a scheduled algorithm.
- I want to minimize market impact, but I’m more concerned about getting the sell order completely executed in one day.
Based on Bean’s comments, Minchow considers three algorithms: POV, VWAP, and TWAP.
