Automatic Trading Algorithm And Strategy In Foreign Exchange Rate

This paper analyzed automatic trading strategy for foreign exchange rate.Firstly,talking about the meaning of foreign exchange trading and market.Secondly,introduced automatic trading especially Turtle Trading System in quantitative trading,and emphasized the positions when do investment as this part will use in own strategy.Thirdly,developed the Python program to download history data for using in model testing,built gray prediction model to predict the price of foreign exchange rate,this price is used to double confirm our own strategy during trading.In chapter 5,paper introduced the strategy which used in automatic trading system,which is called “strong and weak tendency strategy”,as the same time,paper introduced the mathematic model least-square method which is used judgement about strong and weak tendency.And after whole Python program done,used EUR/USD history data between Aug 2017 and May 2018 to test strategy and gave the result of testing.In chapter 6 and 7,paper analyzed the risk of quantitative trading in future.And gave prospects about automatic trading for foreign exchange in chapter 7,and advice it is better to use options when doing trading due to the function of options,introduced how to use call options and put options when buy or sell in the foreign exchange market,and the total profit of using options in trading system,and gave the last conclusion that options can decrease the risk of trading.