  We derive an explicit solution for deterministic market impact parameters in
the Graewe and Horst (2017) portfolio liquidation model. The model allows to
combine various forms of market impact, namely instantaneous, permanent and
temporary. We show that the solutions to the two benchmark models of Almgren
and Chris (2001) and of Obizhaeva and Wang (2013) are obtained as special
cases. We relate the different forms of market impact to the microstructure of
limit order book markets and show how the impact parameters can be estimated
from public market data. We investigate the numerical performance of the
derived optimal trading strategy based on high frequency limit order books of
100 NASDAQ stocks that represent a range of market impact profiles. It shows
the strategy achieves significant cost savings compared to the benchmark models
of Almgren and Chris (2001) and of Obizhaeva and Wang (2013).
