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

Trading Application: What’s Inside?

Almost any application that implements a trading strategy has a number of more or less standard components. Let’s first have a quick look at a somewhat generalized architecture of a typical trading application and then go into greater detail on specific points related to the development of a trading strategy using Python.

In Chapter 1, Developing Trading Strategies – Why They Are Different, we saw a very generalized diagram of a typical trading application. Now, we are going to consider its blocks in greater detail. We will learn how to connect our application to data sources and trading venues, how to retrieve data and check its consistency, and consider important points about trading logic and orders.

By the end of this chapter, you will understand how to develop the main components of a trading application that is efficient, maintainable, and scalable, and how to avoid typical serious problems that arise due to incorrect...