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Getting Started with Forex Trading Using Python

You're reading from  Getting Started with Forex Trading Using Python

Product type Book
Published in Mar 2023
Publisher Packt
ISBN-13 9781804616857
Pages 384 pages
Edition 1st Edition
Languages
Author (1):
Alex Krishtop Alex Krishtop
Profile icon Alex Krishtop

Table of Contents (21) Chapters

Preface Part 1: Introduction to FX Trading Strategy Development
Chapter 1: Developing Trading Strategies – Why They Are Different Chapter 2: Using Python for Trading Strategies Chapter 3: FX Market Overview from a Developer's Standpoint Part 2: General Architecture of a Trading Application and A Detailed Study of Its Components
Chapter 4: Trading Application: What’s Inside? Chapter 5: Retrieving and Handling Market Data with Python Chapter 6: Basics of Fundamental Analysis and Its Possible Use in FX Trading Chapter 7: Technical Analysis and Its Implementation in Python Chapter 8: Data Visualization in FX Trading with Python Part 3: Orders, Trading Strategies, and Their Performance
Chapter 9: Trading Strategies and Their Core Elements Chapter 10: Types of Orders and Their Simulation in Python Chapter 11: Backtesting and Theoretical Performance Part 4: Strategies, Performance Analysis, and Vistas
Chapter 12: Sample Strategy – Trend-Following Chapter 13: To Trade or Not to Trade – Performance Analysis Chapter 14: Where to Go Now? Index Other Books You May Enjoy

Paper trading and backtesting – an essential part of a systemic trader’s risk management

Imagine that we have used all the power of Python and developed a trading application. Now what? Is it time to immediately launch it and try earning some money? No! Before jumping in the pool, it’s essential to make sure there’s water in it, and in our case before putting the app into production, it’s essential that it can make money, at least in theory.

In this section, we’ll consider paper trading and backtesting – two cornerstones of systematic trading that help us understand potential pitfalls with the newly developed strategy. We will learn about historical data, trade simulation, and ordering, and we’ll also quickly consider some ready-made packages that simplify this part of the development.

What are paper trading and backtesting?

After we have developed a trading algorithm, connected to the data source, and are ready to send...

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