Book Image

Hands-On Financial Trading with Python

By : Jiri Pik, Sourav Ghosh
Book Image

Hands-On Financial Trading with Python

By: Jiri Pik, Sourav Ghosh

Overview of this book

Creating an effective system to automate your trading can help you achieve two of every trader’s key goals; saving time and making money. But to devise a system that will work for you, you need guidance to show you the ropes around building a system and monitoring its performance. This is where Hands-on Financial Trading with Python can give you the advantage. This practical Python book will introduce you to Python and tell you exactly why it’s the best platform for developing trading strategies. You’ll then cover quantitative analysis using Python, and learn how to build algorithmic trading strategies with Zipline using various market data sources. Using Zipline as the backtesting library allows access to complimentary US historical daily market data until 2018. As you advance, you will gain an in-depth understanding of Python libraries such as NumPy and pandas for analyzing financial datasets, and explore Matplotlib, statsmodels, and scikit-learn libraries for advanced analytics. As you progress, you’ll pick up lots of skills like time series forecasting, covering pmdarima and Facebook Prophet. By the end of this trading book, you will be able to build predictive trading signals, adopt basic and advanced algorithmic trading strategies, and perform portfolio optimization to help you get —and stay—ahead of the markets.
Table of Contents (15 chapters)
1
Section 1: Introduction to Algorithmic Trading
3
Section 2: In-Depth Look at Python Libraries for the Analysis of Financial Datasets
9
Section 3: Algorithmic Trading in Python

Summary

In this chapter, we have learned that an algorithmic trading strategy is defined by a model, entry/leave rules, position limits, and further key properties. We have demonstrated how easy it is in Zipline and PyFolio to set up a complete backtesting and risk analysis/position analysis system, so that you can focus on the development of your strategies, rather than wasting your time on the infrastructure.

Even though the preceding strategies are well published, you can construct highly profitable strategies by means of combining them wisely, along with a smart selection of the entry and exit rules.

Bon voyage!