Any reason not to use a VWAP order for long term buys and sell?

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hiddenpower
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Joined: Tue Nov 17, 2020 11:24 pm

Any reason not to use a VWAP order for long term buys and sell?

Post by hiddenpower »

From what I can see, some brokers like IBKR allow you to use an algo VWAP order type. It looks like you just set this for a buy or sell throughout the day and can forget it, resting assured you're filled at least on the average price. It seems like a no brainer when you've made a decision to go in or out of a longer term position and are not day trading. Thoughts? Otherwise even though it's insurmountable in the long term, I question whether I made a good entry throughout the day
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