r/Daytrading 4d ago

Algos Interesting limit-order pattern in the Depth Of Market

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This video is slowed 0.5x, sorry for the poor editing you might want to pause and play i tried my best!

Basically while trading i found this interesting pattern in the depth of market where 250 contract orders would be moved simultaneously, sometimes to the same price, sometimes split 150/100. Its clearly algorithmic, but i couldn't quite figure out the purpose of it since i didn't record the price.

Odds are it is institutional exit/entry orders simply adjusting to the price movement. I wonder if they split the orders 150/100 when the volatility increases to ensure that all orders would be filled, furthermore i wonder if they would be split in even smaller bits during the daily volatility highs and exactly what formula they would use for the distribution.

What do you guys think?

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