This article has been translated from English to Gen Z Slang.

Time-Weighted Average Price (TWAP) be a trading hack that's all about spreading big money moves without going 🤯 on the market price.

Bruh, if you're not sneaky with those trades, peeps will totally see your strategy coming. Mix it up a bit so you’re less obvious. 😎

Most lit methods? Switch up your order sizes or, like, play with the time between them. 🔄

You can totally cap how much you buy so you're not spiking the market. Keep it cool, fam.

Time-Weighted Average Price (TWAP) is another OG trading algorithm to flex. Compared to the Volume Weighted Average Price, its math skills are super basic. 🧠

TWAP is one of the early execution algorithms that vibes with chill, waiting for the right market price rather than getting hyper and chasing it. 🚶‍♂️

How to Use TWAP

Best time to flex TWAP is when you wanna drop some serious bank on orders during the trading day. 💹

Let’s say you're tryna cop 100,000 shares of Apple. 🍏

Going wild with one giant order? Yeah, it’ll probably send the market into chaos, hiking up prices. So, split that up over time. ⏰

The TWAP algo chops that mega order into smaller krabby patties and flips them at spaced intervals. 🙌

TWAP’s like the chill cousin of VWAP but, heads up, it’s so basic there are some snags. 🔍

Even if you go slice-and-dice with big orders, during low-liquidity times, they could still mess with the market. 🤔

TWAP’s your best bet for quick trades or for assets with a low-volume vibe. 🚀

Randomized Orders

Being so predictably basic can make you an easy target for wolves in the stock jungle. 🐺

Shake things up by aiming for percentage goals over time versus static amounts. 🙌

What’s that mean? When running a 1-hour TWAP, don't just split it evenly — aim for, say, 25% done in the first 15 mins, half of it over the next block, and so on. 🚀

This approach lets your trades seem more chaotic (in a good way) and less readable. 🔮

TWAP vs VWAP

For sure, VWAP’s got a more detailed vibe since it deals with volume too, but when you’re in a low-buzz scene, TWAP and VWAP numbers can act like twinsies. 👯‍♂️

However, if the session gets bouncy, those two will totes go their separate ways. 🛣️

Peep the table below for TWAP and VWAP tea over an entire trading day. 👀

Look at the beginning of the day — they’re almost twinning! But by close, they’re like 2 pennies apart, fam. 💸

Why tho? During the day, tiny trades at low bucks nudged TWAP but didn’t shake VWAP. 🤷‍♂️