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

Economic news

This is the most well-known type of fundamental data. In layperson’s terms, the better the economic situation, the greater the price of the asset. For example, if the nationwide economy shows growth, the most liquid stocks also grow. Yes, of course, there are exceptions, nuances, and so on, but overall, there is a positive correlation between the major macroeconomic indicators and the stock market’s growth.

But wait, why are we talking about stock markets while our main point of interest is forex (FX)?

With the FX market, economic indicators such as gross domestic product (GDP), jobless rate, core price index (CPI – the main inflation indicator), and others do not have any real long-term effect. Why? Because currencies have one feature that makes them completely different from any other asset class: they have interest rates.

To understand the concept of the interest rate, we should recall the mechanism that brings money into the economy....