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Trading Strategies >> General Discussions About Strategies >> FX Trading Algorithims
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Message started by Bdog on 07/10/08 at 12:10:33

Title: FX Trading Algorithims
Post by Bdog on 07/10/08 at 12:10:33

I would be grateful if anyone has documentation / brochures on Algos that the various banks in this space offer their FX Trading clients.

By the way congrats on the launch of this forum. Fantastic.

Title: Re: FX Trading Algorithims
Post by Maltamir on 07/10/08 at 13:26:46

I think you will get basic infos here :

http://www.advancedtrading.com/directories/algorithmictrading/

(Click on number 3 to get basic information about their services)
Rgds

Title: Re: FX Trading Algorithims
Post by Bdog on 07/11/08 at 05:22:42

Thanks for the promt reply. Most of this though is aimed at equities. Very little or zero on FX algos.

Thanks

Title: Re: FX Trading Algorithims
Post by Algo Designer on 07/11/08 at 05:30:37

That's right. The FX algo area seems to be lagging far behind equities at present. If anyone knows of any decent FX strategy engine, please share the information with us.

Title: Re: FX Trading Algorithims
Post by Maltamir on 07/11/08 at 13:16:26

I mainly use Metatrader software that offers FX algo system. You can also check Ninja trader, but I've never used it.

Main strategies are :
- Trend following
- Carry trade
- Momentum strategies
- FX option strategies
...

These strategies uses market adaptive algos, so you just have to check risk/return or improve you algos.

for More information about FX algo, contact me I will send you research papers..

RGDS

Title: Re: FX Trading Algorithims
Post by bala on 07/30/08 at 03:10:15

Please point me to some research papers on FX trading algorithms. I've been search hard for good papers with limited success.

Title: Re: FX Trading Algorithims
Post by Co0olCat on 07/30/08 at 11:10:25

bala wrote on 07/30/08 at 03:10:15:

Please point me to some research papers on FX trading algorithms. I've been search hard for good papers with limited success.

You are right. Normally access to research papers is limited for outsiders. Once you are in you can access research papers of different institutions like JP Morgan, Citigroup and so on.
For a start you can check these papers:

Dunis, C. L. and J. Miao, June 2005

Trading Foreign Exchange Portfolios with Volatility Filters: The Carry Model Revisited
http://www.ljmu.ac.uk/AFE/AFE_docs/artcdjm_0605.PDF

Abstract

The rejection of the simple risk-neutral efficient market hypothesis in the foreign exchange (FX) market opens the possibility of the profitable use of a carry model taking full advantage of interest rate differentials to trade currencies. A first motivation for this paper is to study whether a simple passive carry model can outperform a typical currency fund manager replicated by dynamic technical Moving Average Convergence and Divergence (MACD) models as in Lequeux and Acar (1998). Secondly, we study whether the addition of volatility filters can further improve the carry model performance.

Lyytinen, J.-P., Spring 2007, Master´s thesis

Currency Carry Trades - Betting Against the Uncovered Interest Parity
http://www.hse.fi/NR/rdonlyres/57C53D18-8447-4DEB-BD87-91B7F584AD76/0/CarryTrades.pdf

Hint: Go to the reference section of these papers. It will direct you further ;)

Title: Re: FX Trading Algorithims
Post by campton on 10/15/10 at 11:48:53

I suggest you some common forex trading strategies:
Choose your broker carefully
Begin with small sums, increase the size of your account through organic gains, not by greater deposits.
Do what you understand
commodity daily prices