Book Image

Learn Algorithmic Trading

By : Sebastien Donadio, Sourav Ghosh
Book Image

Learn Algorithmic Trading

By: Sebastien Donadio, Sourav Ghosh

Overview of this book

It’s now harder than ever to get a significant edge over competitors in terms of speed and efficiency when it comes to algorithmic trading. Relying on sophisticated trading signals, predictive models and strategies can make all the difference. This book will guide you through these aspects, giving you insights into how modern electronic trading markets and participants operate. You’ll start with an introduction to algorithmic trading, along with setting up the environment required to perform the tasks in the book. You’ll explore the key components of an algorithmic trading business and aspects you’ll need to take into account before starting an automated trading project. Next, you’ll focus on designing, building and operating the components required for developing a practical and profitable algorithmic trading business. Later, you’ll learn how quantitative trading signals and strategies are developed, and also implement and analyze sophisticated trading strategies such as volatility strategies, economic release strategies, and statistical arbitrage. Finally, you’ll create a trading bot from scratch using the algorithms built in the previous sections. By the end of this book, you’ll be well-versed with electronic trading markets and have learned to implement, evaluate and safely operate algorithmic trading strategies in live markets.
Table of Contents (16 chapters)
Title Page

Algorithmic Trading Fundamentals

Algorithmic trading, or automated trading, works with a program that contains a set of instructions for trading purposes. Compared to a human trader, this trade can generate profits and losses at a higher speed. In this chapter, this will be your first time being exposed to trading automation. We will walk you through the different steps to implement your first trading robot. You will learn the trading world and the technical trading components behind it. We will also go into detail about the tools that you will use and, by the end of this chapter, you will be capable of coding your first native trading strategy in Python. We will cover the following topics in this chapter:

  • Why are we trading?
  • Introducing algorithm trading and automation
  • What the main trading components are
  • Setting up your first programming environment
  • Implementing your first native strategy