easy · Market Microstructure

In the context of 'slicing and dicing' a large order, why do algorithms frequently randomize the size and timing of child orders?

1. To prevent parasitic traders and pattern-recognition algorithms from detecting and front-running the order.
2. To guarantee that the order will be filled at exactly the NBBO midpoint.
3. To ensure that the algorithm complies with exchange-mandated 'fairness' rules.
4. To minimize the amount of commission paid to the executing broker.

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