Introduction This tutorial will implement the Chaikin Oscillator in Python using historical financial data from the iShares Russell 1000 Growth ETF (IWF). The first part will briefly review the theory behind this indicator. The second part will code a trading strategy using this indicator in Python. Related reading: – Many more Python trading strategies Chaikin…
Introduction This tutorial will explain the construction of a Money Flow Index trading strategy to you in Python. Along the way, it will implement class inheritance approach to build the code. The aim of the article is to show the code how it’s done, not to make a superb trading strategy. The main Python packages…
This tutorial will explain the procedure to build a Simple Moving Trading Strategy in Python; it will begin by explaining the indicator and subsequently implementing a Python example. Related reading: What is a simple moving average (SMA)? The SMA is a trading indicator that calculates the average in a range of days; it is for…
In this article, we will go through the Sharpe Ratio indicator, explain its meaning, its importance, and provide a practical example. In short, we show you how to calculate the Sharpe ratio in Python. Related reading: –Algo trading strategies Python (Backtesting, Code, List, And Plenty of Coding Examples) First, Let’s explain why volatility matters: The…
In this tutorial, we will implement a trading strategy using the ATR indicator. The first part will explain this indicator. Then, we will show a practical example in Python using the SPY data. Throughout this tutorial, we will implement various Python functions. This is how I build a profitable ATR-based trading strategy with Python. Related…
Libraries are an essential part of Python that makes programming faster and easier for developers. These two qualities are especially relevant in Algorithmic Trading. That’s why, in this article, we will explore some of the best algorithmic trading libraries in Python, including those to download data, manipulate data, perform technical analysis, and backtest trading strategies….
Quant strategists employ different tools and systems in their algorithms to improve performance and reduce risk. One is the Monte Carlo simulation, which is quite powerful regarding option pricing or risk management problems. A Monte Carlo simulation represents the likelihood of various outcomes in a process that is challenging to predict due to the involvement…
This article explores the implementation of a mean-variance portfolio in Python. It delves into the core concepts of Modern Portfolio Theory in Section 1 and proceeds to provide a practical Python example in Section 2. Modern Portfolio Theory is a significant methodology widely applied in financial investment, focusing on optimizing returns while minimizing risk through…
In this article, we will implement a trading strategy that will combine a Relative Strength Indicator and a Simple Moving Average. Let’s call it an RSI and moving average trading strategy. We explain the strategy and code it in Python. What is the idea behind the strategy? That is to have both indicators that confirm…
The Python code language allows for backtesting and executing Python Trading Strategy Algorithms. Python is an open-source, high-level yet easy-to-learn computer programming language that is used in a wide variety of applications, including algorithmic trading and data analysis. With all of its packages being free for commercial use, Python has become the preferred programming language…
