Understanding VWAP in Algorithmic Trading

In recent years, algorithmic trading has significantly changed the landscape of equity markets. Traders increasingly rely on sophisticated algorithms to execute orders with minimal market impact. One critical aspect to consider is how these algorithms operate concerning market conditions and order types.

Consider the following scenario: A trader implements a volume-weighted average price (VWAP) algorithm to execute a large order throughout the day. The VWAP algorithm aims to achieve an average execution price that is in line with the market's volume profile. In this context, which of the following statements about algorithmic trading and VWAP strategy is correct?