In this section, let's first tackle a very common problem encountered by a lot of algorithmic trading participants that lack sophistication in their backtesters/simulators. Since backtesters are a cornerstone in building, analyzing, and comparing algorithmic trading strategies irrespective of position holding times, if backtested results are not realized in live trading markets, it's difficult to get off the ground or continue trading. Typically, the shorter the position holding period and the larger the trading sizes, the greater the chance that simulation results are different from results actually achieved in live trading markets. Backtesters are often the most complex software component in a lot of high frequency trading (HFT) business because of the need to simulate very accurately. Also, the more complex or...
Learn Algorithmic Trading
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Learn Algorithmic Trading
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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.
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Current Title:
Learn Algorithmic Trading
Table of Contents (16 chapters)
Title Page
Copyright and Credits
About Packt
Contributors
Preface
Free Chapter
Algorithmic Trading Fundamentals
Deciphering the Markets with Technical Analysis
Predicting the Markets with Basic Machine Learning
Classical Trading Strategies Driven by Human Intuition
Sophisticated Algorithmic Strategies
Managing the Risk of Algorithmic Strategies
Building a Trading System in Python
Connecting to Trading Exchanges
Creating a Backtester in Python
Adapting to Market Participants and Conditions
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