Optimal VWAP trading under noisy conditions

B-Tier
Journal: Journal of Banking & Finance
Year: 2011
Volume: 35
Issue: 9
Pages: 2319-2329

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article proposes an empirically tractable way to incorporate intra-day noise into a VWAP trading rule. In volatile markets, news arrives unexpectedly and rapidly. This should influence a trader's trading decisions. However, the literature has not incorporated such information into an algorithmic trading framework. Subsequently, this paper presents a Dynamic VWAP (DVWAP) framework that allows informed traders to utilize random news; and thus, improve trade-execution.

Technical Details

RePEc Handle
repec:eee:jbfina:v:35:y:2011:i:9:p:2319-2329
Journal Field
Finance
Author Count
1
Added to Database
2026-02-02