8

Futures and Forex Algorithmic Trading

So far, we have seen how to build trading algorithms for stock markets. This was a deliberate choice since the stock market is the simplest to start with. Buying a stock means buying a small part of a company; if the company sells its products, its customers are happy, and it manages to increase its profits and raise the value of its shares. Conversely, the value of its shares is destined to fall, sometimes sharply. As you may have noticed, trading strategies in the stock market are generally long, as it is very difficult for short strategies to work, except in the short term.

In this chapter, we will apply many of the concepts we have learned so far to the futures and forex markets. By the end of this ...

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