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Getting Started with Forex Trading Using Python

Getting Started with Forex Trading Using Python

By : Alex Krishtop
4.3 (3)
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Getting Started with Forex Trading Using Python

Getting Started with Forex Trading Using Python

4.3 (3)
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)
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1
Part 1: Introduction to FX Trading Strategy Development
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5
Part 2: General Architecture of a Trading Application and A Detailed Study of Its Components
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11
Part 3: Orders, Trading Strategies, and Their Performance
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15
Part 4: Strategies, Performance Analysis, and Vistas
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19
Index
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Adding objects to price charts

It is not difficult to add any objects to the chart if we know their coordinates because all matplotlib methods always plot one array-like object versus another. So, basically, all we need to do to add any special objects to a chart is to calculate their position in the list, or the array along the X axis and the corresponding value along the Y axis.

Let’s consider a simple yet valuable example. In Chapter 3, FX Market Overview from a Developer’s Standpoint, we saw that price takers can only buy at the ask and sell at the bid. We also saw that a large order can move the price a few points (pips) up or down because it consumes the liquidity from several levels in the order book. So, we can assume with a good degree of confidence that if the best bid suddenly became greater than the best ask at the previous tick, then it was possibly a trace of a significant buy order. And it works vice versa – if we observe a plunge of the best...

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