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A comment on Algorithmic Trading: A Practical Tale for Engineers. Parent comment

Re:Algorithmic Trading: A Practical Tale for Engineers by chollida1 on Tuesday August 27, 2013 @02:22PM (#6285197)
> You place a limit order in advance to buy at 5.00 (market orders don't guarantee price) and if you get filled you'll be hoping to short at 5.15 or so later.

Minor nitpick.

Since you've bought the stock first, your second trade will be a sell and not a short, unless you overfill on the second leg, in that case you'll have a partial sell and partial short.

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Re:Algorithmic Trading: A Practical Tale for Engineers by OldSchool on Tuesday August 27, 2013 @05:42PM (#6286491)
Correct. In this simple algo scenario the position is assumed to be long 1X or short 1X at any given time. After the first trade, all reversals trades are then either buy 2X or sell 2X until the very last trade.
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