You widened and now get zero fills
Asked at IMC
Earlier you got picked off, so you widened your spread and cut your size to protect yourself. An hour passes and you have done zero trades: no fills on either side, while you can see other participants trading around you.
What does no flow tell you, and how should you think about it?
Show a hint
Zero fills is information too. There are two very different reasons a quote goes quiet.
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.