Andy Webb
Andy Webb

Data, models and programming: overcoming complexity in automated FX trading

As automated trading becomes increasingly accessible to retail traders, a fundamental shift is taking place among the available platforms. On the one hand, the sophistication of their tools and analytics is increasing. On the other, the programming expertise required to take advantage of this enhanced functionality is decreasing. Andy Webb examines some of the key areas in which this apparent contradiction is taking place.

Although it has been a while since automated trading percolated into retail FX trading, hitherto much of the activity has been concentrated among more experienced participants who also have the necessary programming skills to code models from scratch. No longer. Opportunities previously only accessible to these traders can now be tapped by those with little or no programming expertise, courtesy of a new breed of retail FX trading platform. Platform choice and capability Flexibility and extensibility There are as many trading styles in the FX market as there are traders, which begs the question of how/if a platform can actually cater to the necessary range of requirements? Just the broad categories of trading style - momentum, reversal, copy, scalping, arbitrage, carry etc - are daunting enough, never mind traders’ individual implementations of them. While some types of strategy, such as momentum and reversal trades based upon technical analysis can be readily accommodated by the same relatively...continued

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