Automated trading software for Foreign Exchange
Stockhus, Saul (2011)
Mikkelin ammattikorkeakoulu
2011
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201105208891
https://urn.fi/URN:NBN:fi:amk-201105208891
Tiivistelmä
The Foreign Exchange market is the largest financial market in the world. It is used by banks, governments, corporations, hedge funds and other institutions for a number of purposes, such as currency conversion, hedging and speculation. Due to advances in computing, financial data that could previously only be analyzed using charts or calculated manually can now be run through extensive analyses using special algorithms in order to predict the future.
The aim of this study is to research trading in the Foreign Exchange market and to implement an automated trading strategy using a suitable programming language and successfully test it with real market data. Of particular interest was the prospect of discovering new trading methods and tools.
During the course of this study, different types of trading strategies as well as new chart types were developed for the NinjaTrader platform. The strategies were tested using historic exchange rates as well as captured live rates. Choosing the type of strategy, trading platform or broker, as well as other considerations such as real life implementation is discussed. The study is useful particularly to IT and business students interested in the currency markets and automated trading in general. The study gives guidelines on strategy development and gives room for improvement in the future.
The aim of this study is to research trading in the Foreign Exchange market and to implement an automated trading strategy using a suitable programming language and successfully test it with real market data. Of particular interest was the prospect of discovering new trading methods and tools.
During the course of this study, different types of trading strategies as well as new chart types were developed for the NinjaTrader platform. The strategies were tested using historic exchange rates as well as captured live rates. Choosing the type of strategy, trading platform or broker, as well as other considerations such as real life implementation is discussed. The study is useful particularly to IT and business students interested in the currency markets and automated trading in general. The study gives guidelines on strategy development and gives room for improvement in the future.