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Yes and no, any orders are information that you concede to someone else that competes with you for the same resource. But stops probably more important that li
by dmichulke 11y ago
Yes and no, any orders are information that you concede to someone else that competes with you for the same resource.
But stops probably more important that limits because they can be used to "buy cheaper" or "sell more expensive"
So a acting "spontaneously" instead of having orders waiting is probably preferable when mean-reverting.
- ssanders82 11y agoBut when you "spontaneously" send that order in any mean-reversion strategy, it will be a limit order, not a market order. It will still wait to be filled, and may not be filled. Maybe you sit at the bid, maybe the midpoint, maybe hit the ask, but it for sure won't be a market order.