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El TRADING ALGORÍTMICO Y LA MAGNITUD DEL MERCADO DE FOREX

What do forex market traders face?

Algorithmic trading is growing considerably with the evolution of the technologies and the ease of internet access. With the help of books, programming and its tutorials and online brokers we can, as individual investors, develop our own trading strategies.

The main objective of this work is to design, implement and validate a proprietary algorithmic trading strategy based on the volatility of the prices of the options by using the Python program. On the other hand, the framework will be analyzed theory of algorithmic trading strategies and compare different trading methods validation of strategies, including Backtesting, Walk Forward and Paper Trading. Based on the results obtained through a simulated account of Paper Trading, we can affirm that it is a strategy with a very good and with great potential, but not perfect since it is a simple algorithm without no type of filters showing both positive and negative operations. With everything Therefore, we will conclude that it would be very interesting to go deeper into the trading model algorithmic to achieve a beneficial system in its entirety.

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The technological advances produced in recent years have led to a

series of new ways of understanding and approaching financial markets. The sector financial system has been completely transformed and has allowed markets to gain in transparency and efficiency. A person who is dedicated to trading is a person who seeks to make its assets profitable in the financial markets mainly through the speculation. Until a few years ago, these people also known as traders, made decisions based on their own criteria, at critical moments when the time pressure was a factor to take into account, without the possibility of verifying the feasibility of their movements. The final test was in the market in real time. Whether He had made the wrong decision, there was no way to correct it. With the appearance of these new technologies, whose boom took place in the decade From the eighties, the possibilities have increased and we could say that they are endless. A automatic trading system allows the programming of a strategy through mathematical algorithms capable of generating numerous buy and sell operations automatically in a very short period of time. Being a program, can be tested beforehand to see its feasibility and probability of success in the real market. These complicated statistical models have minimized error and risk although it should be noted that they are not perfect. The main objective of this document is to design, implement and validate an own algorithmic trading strategy based on the volatility of the prices of options by using the Python program. As secondary objectives, propose the following: on the one hand, to analyze the theoretical framework of algorithmic trading and on the other comparing different methods of strategy validation, which include Backtesting, Walk Forward and Paper Trading. In last Instead, we will draw conclusions from the study carried out.

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The technological advances produced in recent years have led to a series of new ways of understanding and approaching financial markets. The sector financial system has been completely transformed and has allowed markets to gain in transparency and efficiency. A person who is dedicated to trading is a person who seeks to make its assets profitable in the financial markets mainly through the speculation. Until a few years ago, these people also known as traders, made decisions based on their own criteria, at critical moments when the time pressure was a factor to take into account, without the possibility of verifying the feasibility of their movements. The final test was in the market in real time. Whether He had made the wrong decision, there was no way to correct it. With the appearance of these new technologies, whose boom took place in the decade From the eighties, the possibilities have increased and we could say that they are endless. A automatic trading system allows the programming of a strategy through mathematical algorithms capable of generating numerous buy and sell operations automatically in a very short period of time. Being a program, can be tested beforehand to see its feasibility and probability of success in the real market. These complicated statistical models have minimized error and risk although it should be noted that they are not perfect. The main objective of this document is to design, implement and validate an own algorithmic trading strategy based on the volatility of the prices of options by using the Python program. As secondary objectives, propose the following: on the one hand, to analyze the theoretical framework of algorithmic trading and on the other comparing different methods of strategy validation, which include Backtesting, Walk Forward and Paper Trading. In last Instead, we will draw conclusions from the study carried out.

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https://absalon.ku.dk/eportfolios/970/Articles/How_Does_The_Currency_Strength_Meter_Work

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