Algorithmic execution
Volume Profile Analysis glossary · Volume Profile Technicals
Definition
Trade execution mediated by computer programs, including TWAP, VWAP, iceberg, and proprietary smart-order-routing algorithms. Produces characteristic micro-structure footprints on order flow charts.
Algorithmic execution in plain English
Algorithmic execution just means computer programs — not humans clicking buttons — decide how and when to place trades. A big fund wanting to buy a million shares can't dump one order without moving the price, so an algorithm slices it into hundreds of small pieces spread over time (that's what names like TWAP and VWAP do — spreading buys evenly across time or matching the day's average price), and some ("iceberg" orders) hide most of the size, showing only a tiny tip. Like eating a giant pizza one discreet slice at a time so no one realizes how hungry you are. These robotic patterns leave recognizable fingerprints on detailed order-flow charts.
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