QuantNews Monthly Digest | February Issue

Your monthly news & research update for all things quant trading

This month, QuantNews looked at how sentiment data can be used for an algo trading strategy. We take you through the basics, then show you how to download and explore the data using Python. In this issue you’ll also find sample code for a Bollinger Band ADX range-trading strategy, an introduction to the Monte Carlo model for probability testing, and research on news-trading strategies using textual analysis. Thanks for reading!


IN THE SPOTLIGHT 

Algo Trading with FX Sentiment Data

Sentiment data is often used as a contrarian indicator to help predict potential moves and locate trading opportunities. This month, we’re breaking it down so you can discover your next great trade idea.

  • Learn how to use sentiment data in a mean reversion strategy. In this article we break down the basics of FX sentiment data, like how this buyer-to-seller ratio reveals trader positioning and can show when a reversal may be coming.
  • Discover sentiment data for yourself by following along as we download m1 sentiment and price data into a DataFrame using Python and Pandas. Click here to get started with exploratory data analysis and discover your next trade idea.

Visit QuantNews for more sentiment data!


New this month

TRADING: Developing a Bollinger Band ADX Range Strategy

In this article, Rob walks you through coding a closed-bar Bollinger band ADX range strategy that buys when price breaks below the lower Bollinger band and sells when price breaks above the upper Bollinger, but only when ADX is below 25. Follow along with the provided sample code.

ANALYSIS: Introduction to Monte Carlo Simulation

In this article, Rob walks you through coding a closed-bar Bollinger band ADX range strategy that buys when price breaks below the lower Bollinger band and sells when price breaks above the upper Bollinger, but only when ADX is below 25. Follow along with the provided sample code.

RESEARCHNews-Trading Strategies with Textual Analysis

In this article we look at constructing a rules-based news trading system with a decision support system to analyze text, and what happened when it was combined with a momentum strategy. Read on to find out more.


Upcoming Events

Seminar: Toronto Quant Trading Seminar

Saturday, March 23 | 12:00pm-3:00pm EST

Marriott Downtown at CF Toronto Eaton Centre, 525 Bay St, Toronto, ON M5G 2L2

Join us LIVE in the heart of Toronto for a free event hosted by Friedberg Direct (powered by FXCM technology) in conjunction with QuantLabs^.We’re teaming up with expert quant traders Dr. Ernest Chan* and Shamsher Vellani* to bring you practical guidance on algorithmic trading

  • Learn how alternative data can be used to improve your trading strategy
  • Network with local quantitative traders in your area and hear from quant experts
  • Bring your laptop to follow along in the practical session

register today

Live Webinar Series: Coding a Custom Trading Algorithm in Lua

Every other Thursday 17:00pm – 18:00pm GMT

  • Follow along as our in-house algorithmic trading programmer codes a custom trading strategy from scratch
  • Use FXCM’s IndicoreSDK to assist in coding a custom strategy in Lua
  • Setup an automated strategy to trade on FXCM’s Trading Station platform

register today


Like Free Stuff?

So do we. See the links below to access our community, connect to our web-based REST API, or find a library of sample code for building your algo.

If you have any questions, please contact us at inquiries@quantnews.com.


Risk Warning: The FXCM Group does not guarantee accuracy and will not accept liability for any loss or damage which arise directly or indirectly from use of or reliance on information contained within the webinars. The FXCM Group may provide general commentary which is not intended as investment advice and must not be construed as such. FX/CFD trading carries a risk of losses in excess of your deposited funds and may not be suitable for all investors. Please ensure that you fully understand the risks involved.

^ Service Provider: Friedberg Direct is an independent legal entity and is not affiliated with this Service Provider. Friedberg Direct does not endorse any product or service of the Service Provider. Nothing associated with this promotion shall be considered a solicitation to buy or an offer to sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws or regulations of such jurisdiction.

*Guest Speaker: The guest speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.