medium · Order Flow Analysis footprint-delta

An institutional trader needs to execute a 5,000-lot buy order in Corn. They use a 'TWAP' (Time-Weighted Average Price) algorithm.

What specific signature will this leave on the footprint and cumulative delta chart?

  1. A 'bottom-heavy' footprint as the algorithm quietly rests iceberg bids at every price tick just below the current price.
  2. Large blocks of 500 to 1,000 lots appearing randomly across the tape in order to hide the true order size.
  3. Consistent, similar-sized ask volume across consecutive bars and a smooth, nearly linear rise in cumulative delta.
  4. Extreme volatility in delta as the algorithm aggressively sweeps the entire visible order book about every 10 minutes or so.

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