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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

Stop orders – maximum uncontrolled risk

Essentially, a stop order is an order to buy or sell the specified amount of the asset at the specified price or worse.

You may ask at this point: why on Earth would I want to buy or sell at a price worse than I’d like to?

The answer is very simple: both better and worse are just references to where the order price is relative to the current market price.

For example, if the current price of EURUSD is 0.99673 and I send a buy-stop order at 0.9989, then my order will be executed at any price equal to or greater than 0.9989. Similar to limit orders, a stop order will reside in the broker’s order book until the market price touches the order price and then converted into a market order. Note that, unlike limit orders, stop orders are never sent to the order book immediately, even if you trade with an exchange. This is quite natural, in fact: if I send a limit order to the order book, then I improve the liquidity in...

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