Trader selected an implementation shortfall strategy because it attempts to minimize the weighted average of market impact.
Is this a correct statement? I thought implmentation shortfall just used for analysis instead of real strategy?? Thanks.
You can get Algorithmic Trading strategies that are based on the Implementation Shortfall concept. They attempt to minimize the trading impact by front loading the trading in contrast to Simple Logical Participation strategies (VWAP, Time Based) which trade throughout the day.
Thanks. so need to rely on computer program. I was thinking if trader can do it by themselves?