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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: TGMark ✧  😊 😞
Number: of 6243 
Subject: Interactive Brokers
Date: 12/26/23 9:01 PM
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Does anyone know if orders made using MidPrice algo add liquidity in terms of the tier-based commission structure?

I've made basket orders recently using IB Pro and fixed price option, $0.005/share.
Commissions (1-way) overall seem to be around 0.08% and I'm wondering if that can be further reduced using tiered pricing.
But a lot depends on whether the orders add liquidity or remove liquidity, and those details are not that familiar to me.
As I understand, a market order would remove liquidity because it is immediately executable.
A MidPrice order attempts to execute at the midpoint of the NBBO (national best bid and offer) and so I would think it adds liquidity.
But not sure about that. Also depends partly on what exchange the order would go to.

I'm attempting to simulate FolioFN window trading, at least some version of it.
Today I traded in two "windows" using midprice algo. Generally the orders were <1% DDV but some were a couple percent.
The 16 or so orders took up to something like an hour to fully execute, with a couple stragglers.
From what I could tell, execution prices looked decent, at least nothing jumped out as sketchy.

Mark
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This community has written 6,227 posts about Mechanical Investing. The article-length ones it recommended most:
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