Optimal Execution Strategy for Liquidation

As a portfolio manager, you are faced with a large position in a thinly traded asset that must be liquidated over the next few weeks without significantly impacting market prices. You consider using different execution strategies to minimize market impact while achieving optimal liquidity. Your firm employs advanced algorithmic trading systems designed to execute trades efficiently, yet there are various constraints and market conditions to consider.

You have three potential strategies to choose from:

1. A volume-weighted average price (VWAP) strategy that executes trades throughout the trading day based on the expected volume profiles.

2. A implementation shortfall strategy aiming to minimize the difference between the executed average price and the plan price, adjusting trades based on real-time market conditions.

3. A liquidity-seeking strategy that prioritizes executing at market depth for immediate liquidity, regardless of price considerations.

Given these strategies and the market environment, which execution strategy should you select to achieve your goal of minimizing market impact during the liquidation of your position?