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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

Trading venues – where money meets… other money

First, let me note that despite the overall colloquial language used in this book, I am always trying to stick to the traditional academic approach that follows the same paradigm: definition | logical conclusions | theory | experiment | proof. Without proper definitions, especially when we talk about the foundation of the subject domain, we won’t be able to make logical conclusions, suggest a theory, or test and finally prove a theory – which in our case, means making money. In even simpler words, without a full understanding of the subject, we are unable to suggest appropriate methods to use it.

So, as we mentioned in Chapter 1, financial markets facilitate buying and selling assets at special marketplaces called trading venues. A bit too vague to be useful, right? Well, let’s go into specifics.

Organizing chaos – types of trading venues

A trading venue in the financial world is a place...

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