Using markouts to measure how toxic your flow is
You want to measure whether the flow you're trading against is "toxic" (informed) or benign. You have your fills and the mid-price a short time after each one.
Define the markout, compute the average -second markout for the sample below, and say what it tells you. You bought at \50.0030$49.96$50.02$50.05$50.10$50.14$).
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.