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 from a fundamental analysis perspective

So, what would a fundamental analyst say in both cases? Let’s read one of the typical market reports:

“Today’s weekly Initial Jobless Claims came in at 234k above the expectations of 220K the 8:30 am release had little effect on the USD against its peers. We have Existing Home Sale figures for the month of April released at 10 am. Market participants will be interested in comments on yesterday’s FOMC minutes from Philadelphia Fed President Harker and Atlanta Fed President Bostic at a conference in Dallas today.” (By OFX, https://sitecore.prd.ofx.com/en-us/forex-news/daily-and-weekly-market-news/20180524/fomc-minutes-followed-up-by-fed-speakers-todays/.)

We can see here only a statement of a few known facts with a vague reference to market participants who will be interested in comments. So this analysis is useless for practical immediate trading: it does not give us any idea about possible...