Function headers are crucial for aspiring traders’ financial market success. This article defines and discusses function headers in trading in simple words.
Function Headers—What Are They?
Trading functions begin with a function header that defines their purpose and behavior. It usually has three parts:
Function Name: The function name should describe its purpose. It helps find and invoke functions.
Input Parameters: The function needs these variables to calculate or operate. Function-specific input parameters vary.
Output: The function’s anticipated outcome. It shows the function’s output, which is crucial.
The Value of Function Headers in Trading
Function headers are important in trading for several reasons:
Clarity and Understanding: Well-defined function headers make code easier to read and comprehend for developers and users. The function’s purpose, input parameters, and intended result are simpler to understand and use when stated explicitly.
Maintainability: Function headers help alter and maintain code. Developers may rapidly grasp the function’s functionality and make changes without impacting other portions of the program using them as documentation.
Functions may be reused in numerous trading algorithms or strategies when properly stated with headers. Modularity improves development and testing.
Catching mistakes: A well-formed function header helps find code mistakes. By matching the function’s inputs and outputs, developers may discover errors and fix them before they cause inaccurate computations or capital loss.
Example of Function Header
A typical trading function header is:
calculate_sma(data, period):
As an example:
This function calculates the Simple Moving Average, as its name implies.
The SMA is calculated using historical price or indication data.
The number of SMA calculation periods is determined by period, another input parameter.
This function calculates SMA and outputs it.
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