Forex Automated Trading System Establishment and Optimization Analysis

Abstract

The foreign exchange market's high complexity and risk demand advanced trading systems. This paper aims to explore the establishment and optimization of a foreign exchange automated trading system to enhance efficiency and risk management. Firstly, the paper introduces the characteristics of the foreign exchange market and existing trading methods. Then, it analyzes the advantages and challenges of automated trading systems. Next, it proposes a framework based on technical analysis and machine learning for the automated trading system, discussing its key components and functionalities. Finally, through backtesting with historical data and live trading validation, the system's performance and viability are evaluated.