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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
15
Part 4: Strategies, Performance Analysis, and Vistas

Summary

In this chapter, we learned about the key terms and concepts of systematic and algo trading. We familiarized ourselves with alpha and beta as risk metrics in investment and at the same time, as different methods for profit generation in algo trading. We considered a few popular alpha-generating trading strategies and learned about their advantages, shortcomings, and associated risks. We also touched on the complex domain of options trading as the primary method to earn on market beta and gave a quick look at other trading strategies, such as arbitrage and stat arb, market-making, and HFT.

Now that we know the conditions under which a certain strategy may enter or exit the market, the last obstacle on our way to a first trading application is the mechanism that generates orders according to the strategy rules, sends them to the market, and controls their execution. Recalling the analogy at the beginning of this chapter, now we have added the brains to our trading app, and...

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