CHAPTER IINTRODUCTION 1.1 OVER VIEW This project emphasizes about the Foreign Trade System which is an Interface between the Account holder and the market. In the initial phase details about the various currencies and the profit and loss of currency hold is collected. The project comprises of several modules which also includes currency converter and program to calculate profit and loss for both the operation of the buyer and then the operations of the seller to be considered. This project emphasizes about the Foreign Trade System which is an interface between the Account holder and the market. In the initial phase details about the various currencies and the profit and loss of currency hold is collected. Purpose The purpose of this project is to scientifically approach the foreign exchange market, and to evaluate whether we can develop a strategy that can automatically trade in the market successfully, and can outperform existing basic strategies. To first understand the various overall market conditions- trending, directionless, and volatile. This is crucial, since different trading strategies prove appropriate for differing market conditions. 1.2 SCOPE OF THE PROJECT The foreign exchange (forex) market is a financial market for trading currencies. Trades are made in currency pairs, such as United States dollar and the euro, in which equivalent amounts of money are exchanged. In addition, hedge funds and investors may choose to trade in the forex market for profit, as speculators, as the values of currency pair change. The forex market is rapidly growing, and an important contributor to this is the retail investor– the individual speculator who trades currency pairs for profit, either as a full-time job or for supplementary income. Technology and computers play a key role in bringing these individuals to the forex market. The online Foreign Currency Trading system enables you can have 24 hour updates of your investment in currency from the convenience of your own home. The Foreign Currency trading system involves no exchange fees, commissions and payments of that sort. The margin and leverage trading allows you to increase your earnings by up to 100 times more than regular currency trading. This means larger profits and can benefit some investors. Currency Converter gives you accurate and instant foreign currency conversions. The options are varied for minimum currency trading investments. There is also mini account where with a very small initial investment in a leveraged foreign currency, you can reach a high reward through minimal risk. PROBLEM STATEMENT: The practice of currency trading is also commonly referred to as foreign exchange, Forex or FX for short. All currency has a value relative to other currencies on the planet. Currency trading system uses the purchase and sale of large quantities of currency to leverage the shifts in relative value into profit. The online Foreign Currency Trading system is almost entirely a "spot" market. A "spot"market means that the trading is made immediately or "on the spot". The settlement of those Foreign Currency Trading spot transactions is made within two working days. 1.3 PRODUCTPERSPECTIVE Currency Converter gives you accurate and instant foreign currency Conversions .The options are varied for minimum currency trading investments. There is also mini account where with a very small initial investment in a leveraged foreign currency, you can reach a high level of reward and it is get it through the conceptual and satisfactory minimal risk. External Interface Requirements: The system uses the GUI – Graphical User Interface for easy interaction with the customer. The system maintains a relationship with the Rational Rose Tool. According to the code generated by the Rose tool, the system is developed. This gives more sequential access for the functions and the functions can be coded easily. User Interfaces: GUI is used in generating forms. The credit card processing system provides a good user interface. It is more interactive with the user that the user can easily operate the system. This can be achieved by providing the snap shots describing the functionality of the system. By viewing into the snap shots, the user can gain better knowledge about the system. Software Interface Front End Client - The applicant and Administrator online interface is built using JSP and HTML. The Administrators’ local interface is built using Java. Web Server-Glassfish application server (Oracle Corporation). Backend- Oracle database. Hardware Interface The server is directly connected to the client systems. The client systems have access to the database and within the interface of the server and properly done the interfaces. 1.4 DEFINITIONS AND ABBREVATIONS Investor – who are investing the amount to the bank account . Bank authority-which is continuously checking the account details and database. Broker- doing the trading account, buy and sell the shares. Market authority-updating the market status. HTML - Mark-up Language used for creating web pages J2EE – Java 2 Enterprise Edition is a programming platform and it is the part of the java platform for developing and running distributed java applications. HTTP - Hyper Text Transfer Protocol. TCP/IP – Transmission Control Protocol/Internet Protocol is the communication protocol used to connect hosts on the Internet. TECHNOLOGIES TO BE USED • HTML • JSP • JavaScript • Java • XML • AJAX TOOLS TO BE USED • Eclipse IDE (Integrated Development Environment) • Rational Rose tool (for developing UML Patterns) 1.5 SYSTEM FUNCTIONS LOGIN The Login module contains the form which contain membership name and Member password. It includes Username and Password. TRADING ACCOUNT DETAILS This form contains the information about account holder, market status, Currency held, trading histories, etc. BUY After the user logged in they can buy stocks online the user can buy stock only it is available for buying. SELL After the user logged in they can sell stocks online, the user can sell his own Stocks only. BANK ACCOUNT DATABASE After the trading is finished user has to select the type of transaction whether Credit card account. 1.6 USER CHARESTERISTICS BUYER After the user logged in they can buy stocks online the user can buy stock only. It is available for buying. SELLER After the user logged in they can sell stocks online, the user can sell his own stocks only. BANK ACCOUNT DATABASE After the trading is finished user has to select the type of transaction whether credit card Debit account. 1.7 ENVIRONMENTAL SPECIFICATION SOFTWARE FUNCTIONS Front End Client - The investor and buyer online interface is built using JSP and HTML. The buyer’s local interface is built using Java. Glassfish application server(Oracle Corporation). Easier to test and debug during a smaller iteration. 1. Back End . .Oracle database. 1. The user has to be careful while submitting the information. there is always a chance of intrusion in the web world which requires constant monitoring. More flexible-less costly to change scope and requirements. Easier to manage risk during its Iteration. This allows partial utilization of product and avoids long development time. Each iteration is an easily managed milestone.8 CONSTRAINTS The investors require a computer to submit their information. Web Server . This system will provide an online currency trading service for investors by taking in live feed in of international currency status. Although the security is given high importance. Product function Generates working software quickly and early during the software life cycle. Each component is delivered to the client when it is complete.9: OVERALL DESCRIPTION: Product Perspective: The proposed foreign trading system is an on-line system. Identifying the users ("actors") of the system. not drawing diagrams. A use case is the functionality provided by the system. Use cases are used in the analysis phase of the software development to articulate the high level requirements of the system. Associations are depicted by a line connecting the actor and the use case. USE CASE MODELLING DESCRIPTION: Use Case diagrams identify the functionality provided by the system (use cases). Basic Elements: Actor Actor is something with behavior. The primary goals of Use Case diagrams include: Providing a high-level view of what the system does. and indicate that an actor participate in the use case in some form. the that application can also be considered an actor. the users who interact with the system(actors). and is depicted using a stick figure. . If a system communicates with another application. Use Cases are used in the Analysis phase of software development to articulate the high-level requirements of the system. Use cases are text documents.and the association between the users and the functionality. DEVELOP THE USECASE MODELING: Use case diagrams identify the functionality provided by the system. not diagrams. Determining areas needing human-computer interfaces. a set of use cases enclosed by a system boundary. Association Associations are used to link Actors with Use cases. and the association between the users and the functionality. communication associations between actors and the use cases and generalization among use cases.CHAPTER 2 USE CASE DIAGRAM: A use-case diagram is a graph of actors. Use case A Use case describes a sequence of actions that provide something of measurable value to an actor. and use-case modeling is primarily an act of writing text. the users who interact with the system (actors). Actors are not limited to humans. Fig 1: UML Use Case Model . Fig 2: UML Use Case Diagram . A Class diagram in the UML gives an overview of the system by showing its classes and the relationships among them. their attributes and operations. It’s represented by a rectangle divided into three parts: class name.CHATER 3 CLASS DIAGRAM: A class diagram in the Unified Modeling Language (UML) is a type of static structure diagram that describes the structure of a system by showing the system's classes. 3) Association . a) Dependency If A depends on B then this is shown by a dashed arrow between A and B. Class diagrams are static-they display what interacts but not what happens when they do interact. Relationships between classes are generally represented in class diagrams by a line or an arrow joining the two classes. attributes and operations 2) Relationships Relationships between classes are the connecting links. Basic Elements 1) Class A class is a set of objects that share a common structure and common behavior. An association between A and B shown by a line joining two classes. If B aggregates A. A generalization has a triangle pointing to the super class . 4) Aggregation Aggregation is the association in which one class belongs to the collection.An inheritance relationship is indicated in the UML by an arrow with a triangular arrow head pointing towards to the general. . 5) Generalization Generalization is an inheritance link indicating one class is a super class of the other.There is an association between two classes if an instance of one class must know about the other in order to perform its work. then A is the part of B. . 3.2 DRAWING UML CLASS DIAGRAM . from the business level down to the operational level. These are modeled as solid rectangles. . The general purpose of Activity diagrams is to focus on flows driven by internal processing vs. a solid circle. 3) Initial state The initial state marks the entry point and the initial activity state. with multiple transactions going in and/or out. synchronization bars are used. Basic Elements 1) Activity states Activity states mark an action by an object. The notations for these states are rounded rectangles. The notation for the initial state is the same as in state chart diagrams. 2) Transition When an activity state is completed. processing move to the other activity state. 4) Final state Final states mark the end of the modeled work flow.Fig 3: UML CLASS DIAGRAM CHAPTER 4 DEVELOPING UML ACTIVITY DIAGRAM 3. or to resume processing when multiple activities have been completed. external events. Transitions are used to mark this movement and modeled using arrows. There can be multiple final states on a diagram and these states are modeled using a solid circle surrounded by another circle. the same notation as found in state chart diagrams. 5) Synchronization bar Activities often can be done in parallel. To split processing. There can only be one initial state diagram.1 INTRODUCTION TO UML ACTIVITY DIAGRAM Activity diagrams are used to document workflows in a system. The activity diagram is a variation of the state diagram where the “states” represent operations. and the transition represent the activities that happen when the operation is complete. 4.2 DRAWING UML ACTIVITY DIAGRAM . Fig 4.1: UML ACTIVITY DIAGRAM Login operation . Fig 4.2: UML ACTIVITY DIAGRAM Trading account details . Fig 4.3: UML ACTIVITY DIAGRAM Broker operations . Fig 4.4: UML ACTIVITY DIAGRAM CHAPTOR 5 DEVELOPING UML INTERACTION DIAGRAM 5.1 INTRODUCTION TO UML INTERACTION DIAGRAM . The sequence diagram lists objects horizontally. and models these messages overtime.Interaction diagram describes how group of objects are collaborated with each other. behavior.2 DRAWING UML SEQUENCE DIAGRAM . Basic Elements 1) object An object has state. These communications between classes are known as messages. an identity object interact through there links to other objects . and time vertically.the pictorial representation for an object is a class with pre fixed by the object name and semicolon. 5. Because UML is designed for object-oriented programming. such as a use case. Two types of Interaction diagrams 1) SEQUENCE DIAGRAM 2) COLLABORATION DIAGRAM SEQUENCE DIAGRAM Sequence diagram document the interactions between classes to achieve a result. Fig5.1: UML SEQUENCE DIAGRAM . Log in operation 5.2: UML SEQUENCE DIAGRAM Trading A/C details . 5.3: UML SEQUENCE DIAGRAM Broker operations . 4: UML SEQUENCE DIAGRAM .5. A collaboration diagram resembles a flow chart that port ray the roles. A collaboration diagram.CHAPTER 6 COLLABORATION DIAGRAM: A collaboration diagram is similar to sequence diagram but the message in number format. functionality and behavior of the object as well as over all operation of the of the system in the real time. 6.1 DRAWING COLLABORATION DIAGRAM: . A sophisticated modeling tool can convert a sequence into a collaboration diagram and vice versa. also called a communication diagram or interaction diagram. In collaboration diagram sequence diagram is indicated by the numbering of the message. Fig 6.1: UML Collaboration Diagram . the time between events For example: A telephone is in the state of being “idle” after the receiver is placed on the hook and until it is taken off the hook. For example: When the event “off hook” occurs.1 INTRODUCTION TO UML STATE CHART DIAGRAMS A UML statement diagram illustrate the interesting events and states of an object and the behavior of an object in reaction to the event transition are shown as arrows. 4) Transition action A transaction can cause a action to fire in a software implementation. labeled with their events state are shown as rounded rectangles. . this may represent the invocation of a method of the class of the state chart diagram. 3) Transitions Transition is a relation between states that indicates that when an event occurs. transition the telephone from “idle to “active” state. BASIC ELEMENTS 1) Events An event is a significant or noteworthy occurrence For examples: A telephone receiver is taken off the hook 2) States A state is a condition of an object at a movement in a time. the object moves from the prior state to the subsequent state.CHAPTER 7 DEVELOPING THE STATE CHART DIAGRAM 7. 7.2 DRAWING THE UML STATE CHART DIAGRAM Fig 7: UML State chart Diagram . in which a higher layer calls up on several lower layers. Packages are defined by 3 symbols Embedded packages UML fully qualified names Circle cross symbol . a layer calls upon the services of thee layer directly below it . Layered architecture is divided into 1) Strict layered architecture 2) Relaxed layered architecture In strict layered architecture. but not in information systems. packages or subsystems that has a cohesive responsibility for a major aspect of the system. other packages Nesting of packages is common in UML package diagram Notation: Package name may be placed on the tag if the packages show inner members or it is placed in the main folder if no members. It’s called the logical architecture because there’s no decision about how these elements are deployed across different operating system process or across physical computers in a network. but not normally vice versa.This design is common in network protocol stacks. systems and layers. LAYER: A layer is a very coarse grained grouping of classes. The UML dependency line is used for a dashed arrow line with a arrow pointing towards the dependant on packages.1 INTRODUCTION TO UML PACKAGE DIAGRAM The logical architecture is the large scale organization of the software classes into packages. UML PACKAGE DIAGRAM: It is used for designing logical architecture of the system using this package we can group anything Ex: classes. It is common to shoe dependency between packages so that developers can see the large scale coupling in the system. Layers are organized such that higher layers call upon services of lower layer. which usually have a relaxed architecture.CHAPTER 8 DEVELOPING THE UML PACKAGE DIAGRAM 8. 8.2 DRAWING THE UML PACKAGE DIAGRAM Fig 8: UML Package Diagram 8. These services are usually application-independent and reusable across several systems.3 IMPLEMENT THE TECHNICAL SERVICE LAYER Technical services layer shows general purpose objects and subsystems that provide supporting technical services. such as interfacing with a database or error logging. Technical service layer describes the relationship between different . components of the software process for any admin seek the registration for new members. FORM 1 FORM 2 .actors. So that the new visitor can login the website and search for book and if need can buy it. FORM 3 . . FORM 4 . FORM 5 . FORM 6 . FORM 7 . the user can sell his own stocks only. etc. It includes Username and Password.CHAPTER 9 IMPLEMENT THE USER INTERFACE LAYER USER INTERFACE LAYER for Foreign Trading System BUYER After the user logged in they can buy stocks online the user can buy stock only. BUY After the user logged in they can buy stocks online the user can buy stock only it is available for buying. market status. . the user can sell his own Stocks only. SELLER After the user logged in they can sell stocks online. It is available for buying. TRADING ACCOUNT DETAILS This form contains the information about account holder. Currency held. trading histories. BANK ACCOUNT DATABASE After the trading is finished user has to select the type of transaction whether credit card Debit account. LOGIN The Login module contains the form which contains membership name and Member password. SELL After the user logged in they can sell stocks online. CHAPTER 10 DEVELOPING THE IMPLEMENTATION DIAGRAMS 10.1 INTRODUCYION TO IMPLEMENTATION DIAGRAMS Implementation shows the implementation phase of system development.2 COMPONENT DIAGRAM A component diagram depicts how the components are wired together to form larger components and or software systems. Component diagram ii. Deployment diagram 10. The trader who come to do the trading process and administrator who manages all the other processes is the sub components. 10. It describes the behavior in terms of interface. . The components are slightly fuzzy thing. Two types of implementation diagrams: i.3 DOCUMENTATION OF COMPONENT DIAGRAM The main component in the component diagram is foreign trading system. Components are wired together by using an assembly connector to connect the required interface of one component with the provided interface of another component. It is a design level perspective. It describes the module part of the system which encapsulates its components. 10.4 DRAWING THE UML COMPONENT DIAGRAM Fig 10: UML Component Diagram . . And it has processing and memory services to execute the software. Nodes may have sub nodes. Two types of computational nodes i) Device node It is the physical computing resource. The nodes appear as boxes. It provides services to host and execute the software elements. which appear as nested boxes.1 INTRODUCTION TO DEPLOYMENT DIAGRAM A deployment diagram models the physical deployment of artifacts on nodes. It has set of computational nodes It is the physical deployment of software element. and the artifacts allocated to each node appear as rectangles within the boxes. ii) EEN (Executive Environment Node) It is the software computing resource that runs with a node.CHAPTOR 11 11. 2 DOCUMENTATION OF DEPLOYMENT DIAGRAM The processor in this diagram is the foreign trading system. The devices are the trader and administrator who perform the main activities in the system. Fig 11: UML Deployment Diagram .11. This is crucial. After optimizing these systems. directionless.CHAPTER 12 CONCLUSION This project is to scientifically approach the foreign exchange market. since different trading strategies prove appropriate for differing market conditions. As the forex market and the number of individual retail investors grows. . we tested basic strategies and examined their performance. and can outperform existing basic strategies. incorporating the most successful features from several strategies. and come up with a strategy that greatly outperformed the basic ones we had tested. Our approach was to first understand the various overall market conditionstrending. and to evaluate whether we can develop a strategy that can automatically trade in the market successfully. we discovered the best approach would be to develop our own system. successful strategy is valuable to those seeking financial prosperity by trading currencies. a new. and volatile. After determining the type of market.