Get Started With Python Making Trading Strategies (Step By Step)

Python is one of the most popular programming languages in the world and almost a must-have skill if you are going into finance. However, there are still lots of people that don’t know how to use it. So, how do you get started with Python to make a trading strategy and backtesting?

This article is the first of a series of articles about how to get started making a trading strategy (and begin backtesting) using Python. We will start from the basics and build our way up. By the end of the series, you should know how to use Python like a professional and use it to backtest trading strategies and build financial models.

Also, if you are looking for a profitable investment strategy, you might want to check out that clickable link. We have hundreds of strategies with specific trading rules and backtests!

Today we are going to begin learning what Python is, where to run your code, what variables are, and the different data types that exist in Python. All this is needed in order to make a Python trading strategy.

Table of contents:

What is Python? How to use it for a trading strategy?

Python is a general-purpose programming language that can be used for virtually anything, from building websites, making applications for analyzing data, automating tasks, making financial models, making trading strategies, doing backtesting, and running trading strategies live (automatically).

Python was developed by Guido Van Rossum in the late 80s and, contrary to popular belief, the name Python doesn’t come from the snake but from the British comedian Monty Python!

Python has become very popular in recent years for a variety of reasons.

First, it has a simple syntax that mimics natural language, making it easy to learn and understand.

Second, it’s beginner friendly, making it popular for entry-level coders.

And last, it has a vast and active community that contributes to the Python pool of modules and libraries and acts as a helpful resource for other programmers. The latter is extremely important for a coding language. There is plenty of free code available.

These reasons, among others, are why Python is so big in the financial world, especially among investors and traders that want to backtest their trading strategies.

Python-related resources

We have written many articles about Python, and you might find these interesting: