AlphaNet seeks to reduce trading slippage through execution models informed by liquidity and market conditions. Its Hackworth V3 materials describe Dynamic TWAP improvements aimed at execution quality. The goal is cost control, not a promise of zero slippage.
What causes slippage?
Slippage is the difference between a chosen reference price and the achieved execution price. It can arise because the market moves, because the order is larger than the liquidity available at the best quote, or because execution is delayed. The reference price must be specified for the comparison to be meaningful.
Suppose the best displayed quote is available for only a small quantity. Filling a much larger order at worse price levels is not the same as receiving the displayed quote for the entire trade.
Why slower is not always better
A smaller market footprint can come at the cost of waiting. During that wait, prices can move against the unfinished order. The execution problem is therefore a balance between immediate impact and changing market prices.
Performance should be assessed across completed orders, including fees and unfilled portions, rather than through isolated examples of price improvement. A favourable fill on one trade does not establish a general guarantee for the next one.