Conclusion

Now, we are familiar with orders of the three main types, and we know in which cases we prefer to use market, stop and limit orders, and in which cases we’d rather avoid using them. Besides that, from previous lessons, we remember how to receive and handle market data, and how to use technical analysis, and we remember the key risks and have at least some ideas on how to mitigate them. So, we are ready for the final, ultimate job of any algo trader in the research and development phase: we are about to start drafting a trading application, something that will receive data, process it, generate trading signals, convert them into orders, send the order to the broker, process the broker’s response, and collect the trading statistics, which can ultimately prove or disprove the trading idea. This is what we are going to do in the next lesson.