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

Summary

Well, it’s been a long and – I hope – interesting trip, so it’s time now to summarize what we learned.

Technical analysis assumes that price includes everything in itself and attempts to find repeating patterns of behavior, suggesting that the price action following a similar pattern will also be similar to what already happened in the past.

There are just four major classes of technical studies, despite their visual diversity at first glance: market speed or momentum, digital filters, range, and volatility. Each type of study can be used to detect a certain situation in the market, but none of them can produce a ready profitable trading strategy on its own.

The cornerstone of all technical studies is the sliding window, and the bane of technical trading is peeking ahead during development and testing. Using queues to emulate incoming data streams and to organize sliding windows solves the problem of peeking ahead once and for all.

Besides...