Introduction FAQ to Quantitative Trading of Digital Currency
This article is aimed at answering common questions about novices for program trading. For novices who do not know programming, quantification, or even trading, it is difficult to learn quantification at the beginning. This article will introduce some of the most basic concepts.
1. What is digital currency program trading?
Program trading is to use a program to connect with the exchange through API to automatically trade Bitcoin or achieve other functions according to the design intent. Program trading is not the same as quantitative trading. You can also realize some auxiliary functions, such as price alarm, data statistics, automatic full position, regular buying, and set price buying and selling. Obtaining profits from program trading is a more difficult task.
2. Why is it necessary to conduct program automatic trading?
- Program unattended, it has more advantages in the face of 7 * 24 digital currency trading market.
- Manual operation of high-frequency strategy is unrealistic, and only automatic trading procedures can be used.
- Through the process of writing strategies, you can parameterize your strategies and make your understanding of trading strategies more thorough.
3. What are API and API-KEY?
The full name of API is Application Programming Interface. You can see the words "API" in the corners of each exchange. Click it, and you can see the corresponding documents. It is clear at a glance which functions can be implemented, such as Okcoin API documents.
The apiKey and secretKey are account passwords, which are not required for all connections, such as viewing historical transaction records, obtaining tickers, in-depth data and other public information; It is necessary to view account information, order transactions, etc. Generally, keys can be applied in the user center. After the key is received, it should be saved and cannot be disclosed.
API protocols usually include REST API and WebSocket. The REST API interacts once every connection, while WebSocket can realize subscription, such as subscription account information. When account data changes, account information will be pushed, while REST needs to request it by itself. Both of them are very common and you can select according to the actual situation of the strategy.
4. In which exchange did you trade in 2019?
OKX, Huobi and Binance are generally recommended. These three exchanges are relatively good, deep and active. If other exchanges have no special needs, they will not be considered. Small platforms have high risks and poor liquidity, which is not conducive to trading. For futures trading, the risk is very high. Novice is not recommended.
5. What quantification platform should be used?
If you have mastered programming, you can write your own strategy directly and run it by yourself. If it is too difficult for you, we recommend the FMZ Quant platform (www.fmz. com), which encapsulates different exchanges. There are numerous tutorials and users, which are convenient for beginners to communicate with.
6. What language is used to write the program?
You can use Python, because it is simple enough. For beginners, Liao Xuefeng's Python tutorial is recommended. Programming is not difficult to learn, and it is the basis of the next tutorial. Javascript is also recommended for FMZ Quant platform. It is simple enough and has many examples. If you find the programming language difficult and tedious, you can also use the real-time Mylanguage. The FMZ Quant platform supports it, which has simple grammar, and with a few lines of code, you can write a complete strategy.
The most important thing is that learning in practice, which is the most efficient method. You don't need to wait until everything is ready to write your own strategy. Take a general look at the most basic Python tutorial. With a simple basic concept in mind, you should write your own program immediately. If you encounter problems, you can search Google, Baidu and look at the documents, you can find the answers to almost all your questions, and it is unnecessary to ask people for most of the time. Only when we take action and get through the initial difficulties, will everything come naturally.
Another threshold of program trading is strategic thinking, which is not unfathomable. You can find a lot of classic ideas in Zhihu, however it changes afterward, it always changes along with its ancestors.
The first step is the most difficult to start program trading from scratch. I'm afraid 90% of the people who want to do program trading have not taken the first step. The solution is simple, spending less time on the sidelines. Take action now, write the first function, and achieve the simplest function. The difficulty has been passed step by step.
7. Where can I find strategy examples?
FMZ Strategy square has a lot of publicly available strategies, some of which used to be very effective and can be referred to learn. https://www.fmz.com/square
8. Is it still possible to make money with quantitative digital currencies? Can you recommend a strategy?
Of course there are still profitable strategies, check out FMZ Strategy square's publicly available strategies: https://www.fmz.com/live . But there is no free lunch. Novice should not pursue the strategy of making money at the beginning. The most fundamental thing is to understand trading, understand quantification and write your own strategy. Effective strategies for novices may also lose money.
9. How to backtest the program?
The backtesting issue is more complicated, the most convenient way is to backtest with FMZ Quant platform, which has supported ticker-level real data backtesting recently, and even includes real depth, you can use javascript or Python to write the program for backtesting, and it is free. Backtesting can be referenced only.
10. Where to run the program?
At the beginning of the test, it can run on the local machine, as for the online running, it is more cost-effective to rent a server, do not worry about the network and power outages, the latency is also lower. You can rent an overseas server.
11. Where to communicate?
QQ group: 863946592, or the WeChat group on FMZ home page, the API groups of major platforms are popular enough, if you encounter problems, you can ask in the group.
12. What are the strategies?
At present, the most reliable ones are "moving bricks", arbitrage, making markets, etc. A specific understanding search will give you a lot of information. In general, due to the fierce competition, all the strategies are declining in returns, after all, the excess returns are not perpetual.