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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
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
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15
Part 4: Strategies, Performance Analysis, and Vistas

Part 3: Orders, Trading Strategies, and Their Performance

In previous parts, we learned about the FX markets, understood how they operate, and discovered how to avoid the intrinsic risks. We also considered the essential components of most trading algorithms, which aim at addressing the peculiarities of the subject domain.

Part 3 moves forward by explaining the ideas behind most trading strategies, including all-time classics such as trend following, momentum, and mean reversion, along with more advanced arbitrage and stat arbitrage, market making, and high-frequency trading. We will also learn about the most common types of orders, typical issues with their execution, and ways to mitigate the associated risks. Finally, we will build our first trading app, test it, and learn about one of the most common mistakes among quant traders.

This part comprises the following chapters:

  • Chapter 9, Trading Strategies and Their Core Elements
  • Chapter 10, Types of Orders and Their...

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