This article will explain how to backrest a Weighted Moving Average in Python. In the first part, there will be a brief introduction and explanation of this indicator. Subsequently, we will implement a Python example to calculate the result of the trading strategy. Finally, we will implement a for-loop with our strategy. Related reading: What…
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…
Traders use a wide range of indicators when trading. Among the most popular are the momentum and mean-reversion indicators, but there also exist indicators that measure volatility, such as the average true range. Let’s make an average true range (ATR) trading strategy in Python. The Average True Range (ATR) is a volatility indicator that, unlike other…
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…
Triple Exponential Moving Average (TEMA) This indicator is used to identify the trend, retracement, and potential support and resistance. After the development of the Double Exponential Moving Average (DEMA), Patrik Mulloy enhanced the indicator and developed the TEMA. The interpretation of the indicator is similar to a moving average; when the indicator goes up, it…
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….
Many metrics and statistics are used to quantify a trading strategy’s performance. CAGR, standard deviation, Sharpe Ratio, and maximum drawdown are among the most popular indicators. However, today, we will look at one that is not used very often: How to measure the skewness of a trading strategy using Python. The skewness is a measure…
Pairs trading strategy is short-term and leverages the Law of One Price, an essential economic concept. This pairs trading strategy with Python involves simultaneously placing two positions in related securities to exploit short-term price divergences. To illustrate this strategy, consider two imaginary financial instruments, Company A and Company B, whose prices diverge over a specified…
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…
Introduction This tutorial will use Python to implement a profitable trading strategy using the Williams %R indicator. The first part will explain the indicator, and the second part will implement the Python code. The second goal is to illustrate how to improve the strategy by adding a second indicator in Python. In pursuit of this…
