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Feb 16 9 tweets 2 min read Read on X
If I woke up and had no memory of algorithmic trading with Python.

This is the Python Roadmap that I'd follow to get it back in a tenth of the time: Image
1. Build a Solid Python Foundation

Before diving into trading specifics, I'd get comfortable with Python basics—data types, control structures, functions, and OOP. Understanding these fundamentals will make it easier to grasp more advanced trading concepts later.
2. Master Data Handling with Pandas

Pandas is my go-to library for data manipulation and analysis. Learn how to load historical market data, clean it, and perform time-series analysis. This skill is crucial for testing and validating your trading ideas.
3. Visualize Your Data with Plotly

Effective visualization helps uncover trends and patterns. Plotly is excellent for creating interactive charts and dashboards. Practice plotting price movements, volume, and indicators to better understand market behavior.
4. Develop and Backtest Strategies Using Zipline Reloaded

Zipline Reloaded allows you to backtest trading strategies on historical data. I'd start by coding simple strategies, then gradually add complexity.
5. Implement Risk Management with Riskfolio

Risk management is key to long-term trading success. Explore Riskfolio, a powerful library for portfolio optimization and risk analysis. It helps you construct portfolios that balance return expectations with acceptable risk levels.
6. Connect to Real Markets via Interactive Brokers API

Once you’re confident in your strategies, learn how to execute them in a live environment using the Interactive Brokers API. This step involves transitioning from backtesting to paper trading, and eventually, live trading.
7. Want help getting started with algorithmic trading in Python?

I spent over 100 hours creating a free course and blueprint to get you started in under 5 days.

Get it here: startalgorithmictrading.com/beginners-algo…
P.S. - Want to learn Algorithmic Trading Strategies that actually work?

I'm hosting a live workshop. Join here: learn.quantscience.io/qs-register

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More from @quantscience_

Feb 17
Python is insane for algorithmic trading.

Example: Microsoft open-sourced this AI quant investment platform 100% for free

Here's what it does: Image
Introducing Qlib: An AI-oriented Quantitative Investment Platform Image
Here is a complete example of qrun, which defines the workflow in typical Quant research. Below is a typical config file of qrun.

Learn more here: qlib.readthedocs.io/en/latest/comp…Image
Read 5 tweets
Feb 15
According to Ray Dalio, the easiest way to adjust for risk is to seek uncorrelated returns.

Ray's made billions from a simple idea.

Here's how to do it in a few lines of Python code: Image
Step 1: Collect Stock Data

Run this code to download free stock price data from Yahoo Finance. Image
Step 2: Convert Prices to Returns

Using pandas code, we can get returns (just run this code): Image
Read 8 tweets
Feb 9
If I had to relearn algorithmic trading in Python starting from scratch, this is what I'd learn.

Complete 8-Step Roadmap:🧵 Image
Step 1: Master Python Basics

Start with the fundamentals: data types, loops, functions, and OOP. Resources like YouTube Python courses are a great way to begin.
Step 2: Data Analysis with pandas & numpy

Learn how to manipulate and analyze data using pandas for DataFrames and numpy for numerical computations. Practice with financial datasets to get comfortable with data wrangling.
Read 11 tweets
Feb 7
Stock Prediction AI: Using Machine Learning and Deep Learning to predict stock price movements in Python.

The Python code is 100% free on GitHub.

Let's dive in (bookmark this): Image
1. The Python Machine Learning and Deep Learning Libraries:

- mxnet
- gluon
- sklearn
- xgboost Image
2. Stock Price Data (Train/Test)

The dashed vertical line represents the separation between training and test data.

GS is shown but will use 72 assets.

Daily prices for each asset. Image
Read 12 tweets
Feb 5
Top 15 Algorithmic Trading Strategies (and how they work) 🧵 Image
1. Pairs Trading

Trades two correlated instruments simultaneously. It goes long on one asset and short on the other to profit from deviations from their historical relationship, expecting the correlation to eventually resume.
2. Scalping

Involves making numerous small trades to capture minimal price differences over a short time. For example, tape reading is used to analyze order flow and timing, enabling scalpers to profit from very brief price fluctuations.
Read 19 tweets
Feb 2
160% return using a TOTALLY RANDOM stock picking strategy?

The importance of risk management.

A thread: Image
Have you ever heard of a totally random trading strategy?

It was tested on over 7 years of data on 14 different stocks—and got surprising results.

Here’s a quick breakdown of the experiment.
The core idea stems from hedge fund manager Tom Basso, who showed that random entries can be profitable when paired with robust risk management and position sizing.

Essentially, predicting price direction ≠ the main edge.
Read 12 tweets

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