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

Industry-specific information

Normally, fundamental information of this sort almost doesn’t affect the currency rates because the scope of its effect is too narrow. You can think about a currency as the largest market index, which includes all industries and all aspects of the economy of a particular country and compares them to those of another country in a currency pair. Most developed countries make every effort to keep their economies balanced and diversified. So, in case something happens, say, only in microelectronics, car manufacturing, agriculture, or healthcare – well, yes, it may affect the currency rates for a very limited time, but the effect will be so small, almost negligible, that normally, currency traders disregard fundamental information of this sort.

There are some notable exceptions though. There are countries whose economies are very tightly connected to only one or two industries. For these countries, fundamental factors that are specific to the...