Book Image

Getting Started with Forex Trading Using Python

By : Alex Krishtop
Book Image

Getting Started with Forex Trading Using Python

By: Alex Krishtop

Overview of this book

Algorithm-based trading is a popular choice for Python programmers due to its apparent simplicity. However, very few traders get the results they want, partly because they aren’t able to capture the complexity of the factors that influence the market. Getting Started with Forex Trading Using Python helps you understand the market and build an application that reaps desirable results. The book is a comprehensive guide to everything that is market-related: data, orders, trading venues, and risk. From the programming side, you’ll learn the general architecture of trading applications, systemic risk management, de-facto industry standards such as FIX protocol, and practical examples of using simple Python codes. You’ll gain an understanding of how to connect to data sources and brokers, implement trading logic, and perform realistic tests. Throughout the book, you’ll be encouraged to further study the intricacies of algo trading with the help of code snippets. By the end of this book, you’ll have a deep understanding of the fx market from the perspective of a professional trader. You’ll learn to retrieve market data, clean it, filter it, compress it into various formats, apply trading logic, emulate the execution of orders, and test the trading app before trading live.
Table of Contents (21 chapters)
1
Part 1: Introduction to FX Trading Strategy Development
5
Part 2: General Architecture of a Trading Application and A Detailed Study of Its Components
11
Part 3: Orders, Trading Strategies, and Their Performance
15
Part 4: Strategies, Performance Analysis, and Vistas

Backtesting and Theoretical Performance

It’s been a long and, hopefully, interesting – although difficult at times – journey. It took us ten chapters to get familiar with all the essentials of market structure and the key concepts that create the foundation of systematic and algo trading. Now, we have approached the conclusion of this entire book. It’s time to bring all the pieces together and start developing our first trading application that can be used in both research and production.

We are going to develop a universal prototype that you will be able to use and reuse by just re-writing some parts without modifying the entire structure. We will trace all the paths from receiving a tick to placing an order – while checking the consistency of all our actions. We will learn how to keep parts of the trading application synchronized and see why it’s so important to do so. And finally, we will collect some very basic statistics of a sample...