divide-by-5 bot, page-9

That sounds like a VWAP algorithm.

What that means is they have an order that they are trying to fill at the Volume Weighted Average Price for the day.

The way you do that is to make sure you are getting a bite of the stock in the same proportion as other people trade.

For example if the avg daily volume is 100k units of stock, they may have an order to buy 20k units.

To do this, they would buy one unit for ever 5 that other people bought. By doing this close to the previous trade it ensures that they end up with the price very close to the days volume weighted average price.

For the trader it is a 30 second job to setup a VWAP buy or sell order. Its essentially the same as any other market buy or sell but they would specify they want to use a VWAP target price. i.e. it is VERY low effort for them to meet a specific price target.