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Python Algorithm Trading Part 1: Python Data Analysis for Algorithm Trading

Learn a systematic approach to S&P 500 pair trading with Python. Lay the foundation for an investment strategy that excludes emotions through professional data analysis.

(5.0) 24 reviews

161 learners

  • danielyouk
투자
이론 실습 모두
백테스팅
Python
oop
Quant
Pandas
Machine Learning(ML)

Reviews from Early Learners

What you will gain after the course

  • Financial Data Statistical Analysis

  • Interactive Visualization with Plotly

  • Python Object-Oriented Programming

  • Pandas Time Series Analysis

  • Accelerating Interpretation Through Data Parallel Processing

  • Python Package Management with Anaconda

Conquer the stock market with a statistical approach!
A strategic investment journey starting with object-oriented Python and Pandas

Notes before taking the course 📢

IMPORTANT NOTICE :

This course is designed to educate algorithmic trading and coding automation from a developer's perspective . The course content focuses on developing investment strategies and simulating them , and does not cover account opening, legal procedures, tax-related matters related to actual investments, etc. In addition, it does not serve as investment advice or financial counseling , and matters related to actual financial transactions should be carried out at one's own risk.

All trading strategies covered in the course are based on simulations and are for educational purposes only. If students have questions related to investing or trading, please understand that we cannot answer questions that are outside the scope of the course.


[Python Algorithm Trading Lecture] is a three-part series , and this lecture is 'Part 1'.

  • Part 1 - 'Python Data Analysis for Algorithmic Trading' (this lecture)

    • Covers the fundamentals of Python data analysis required for algorithmic trading.

  • Part 2 - 'Real-time algorithmic trading using Interactive Brokers API'

    • Learn how to implement real-time trading using the #1 global market share Interactive Brokers API.

  • Part 3 - 'Cloud Automation'

    • Learn how to automatically launch virtual machines to match your stock trading schedule with cloud automation.

Why You Should Learn Python at This Point 🤔

Where to start with Python data analysis? 🤔

Why study Python for financial analysis ? ❓

Why do we need object-oriented programming ? ❓

Why is parallel processing necessary ? ❓

Why set up a Python analytics environment in Azure ? ❓

If you don't have basic knowledge of Python 🤔

...

If you are curious about the questions above, read the introduction below!

First, popularity in the job market!

As of now (2024), the undisputed #1 programming popularity is Python. Programming popularity is also linked to opportunities in the job market. Learning Python will provide you with more opportunities.

PYPL (Popularity of Programming Language)

Second, then why Pandas?

This is a question about the essence of data analysis. The essence of data analysis, called EDA (Exploratory Data Analysis), is the ability to process raw data into a desired form. The tool that can do this EDA most effectively is Pandas.


Third, why study Python with financial data?

Did you know that Wes McKinney , the creator of the Pandas library essential for data analysis in Python, was a quant working in the financial sector? Stock data is an ideal analysis target for applying complex and diverse analysis techniques and statistical models.

Pairs Trading, which will be implemented in this lecture, defines stock pairs that show similar patterns and uses statistical methodology and machine learning to determine algorithmic investments.

Fourth, in general data analysis classes, we write scripts in a functional manner.
Why study object-oriented data analysis?

  • Data is dynamic: investment strategies that worked in the past may not be suitable today.

  • Respond to continuous change: Your code needs to be updated periodically to accommodate changing data characteristics.


Advantages of Object Oriented Programming (OOP)

Easy to maintain : Modularize code to make it easier to modify and maintain code written by individuals or teams.

Improved readability : Block-based coding using classes greatly improves the readability of your code.

Prevent Spaghetti Code : Avoid 'spaghetti code' with a systematic structure instead of one-off scripts.

Increased Productivity : Writing object-oriented code can significantly increase analyst productivity.

For this reason, learning object-oriented programming in data analysis is an important skill for effective code management and productivity improvement beyond simple function implementation. Once you become familiar with object-oriented grammar, you can quickly understand the code below in a few seconds. The ability to interpret object-oriented grammar is a magic like speed reading in reading .

Fifth, Python is slow? Is that really true? The answer is Yes or No.

Python can be sped up in two ways. In deep learning, GPUs can be used to speed up calculations, while in data analysis , parallel processing of the CPU can be used to speed up the process .

This lecture will guide you on how to effectively utilize CPU cores .

Practical examples : In the hands-on course, you can learn specific ways to use CPU cores in parallel and improve processing speed.

Practical Applications : Many practitioners are not fully utilizing the potential of CPU parallel processing. In this lecture, you will learn how to overcome this.


Sixth, configure the analytics environment on an Azure virtual machine.

  • Using Azure Virtual Machines in your analytics environment :

    • In this lecture, we will build a stable Python analysis environment using Azure virtual machines.

    • Minimize variability in local environments and provide a standardized learning environment.

    • Learn how to set up a virtual environment and manage packages using Anaconda.

  • Alternatives if you have trouble using the cloud :

    • We also share a separate notebook to enable implementation of Python analysis using Kaggle Notebooks.

    • The Kaggle platform offers the advantage of being able to start analyzing data right away without any installation or configuration.

    • This allows for flexible learning in a variety of environments.

The last seventh, Python Crash Course, is easy to understand even without basic knowledge.

  • The basic Python syntax and concepts required for this course are intensively covered in “Section 4. Python Crash Course for Financial Analysis.”

  • This section starts with the basics for those new to Python, and dives deep into the core syntax and functions needed for financial data analysis.

  • This will give students a solid foundation to follow along smoothly with the more complex analysis and programming content that is presented later in the course.

💡 What sets it apart from other Python data analysis courses

  • A lot of thought and practical application on how to write readable code

  • Access to real-time data via Yahoo Finance, not historical data

  • Everything is an object. Object-oriented programming

  • No more slow Python, Python with fast interpretation speed

  • And cloud application

I recommend this to these people

Using Python
In data analysis
For those who want to get started

Anyone who wants to upgrade their Python skills in an object-oriented way

Anyone who wants to implement algorithmic trading in Python

Things to note before taking the class

Practice environment

  • The lecture will proceed by creating a Windows OS virtual machine in Azure and creating a Python analysis environment with Anaconda. You can also proceed with the practice through Kaggle Notebook without setting up the analysis environment.


Learning Materials

  • All Python scripts are attached to the course materials, and the main script notebook is also accessible via the Kaggle platform.

Recommended for
these people

Who is this course right for?

  • For those who want to statistically analyze financial data using Python

  • A data analyst who wants to write tidy (clean) Python scripts by applying object-oriented programming.

  • Someone who can understand basic programming concepts (e.g., for loop statements) as easily as reading English.

Need to know before starting?

  • Basic programming literacy (e.g., loop statements)

Hello
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626

Learners

64

Reviews

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Answers

4.8

Rating

7

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Curriculum

All

52 lectures ∙ (6hr 3min)

Course Materials:

Lecture resources
Published: 
Last updated: 

Reviews

All

24 reviews

5.0

24 reviews

  • airjunseo3517님의 프로필 이미지
    airjunseo3517

    Reviews 6

    Average Rating 5.0

    5

    100% enrolled

    Hello. I took the class well. I felt that you prepared a lot and the content was good, so I was satisfied. Part 2 was a lecture that I look forward to. To explain my background, I know how to use Java and Kotlin as programming languages, but this is my first time learning Python. I also know object-oriented programming, but I have almost no knowledge of data analysis or statistics, so I took this course. To be honest, it was a very unfamiliar concept to me, so it felt difficult, and I think I need to go over it a few more times to get used to it. However, I felt the depth throughout the lecture, and if I could eliminate it through repeated learning, I thought it was an incredibly useful lecture. In my case, there were quite a few concepts I didn't know during the lecture (e.g. Python concepts, Jupyter notebook, zscore, etc.), so I searched them separately and studied them. I studied by following the code one by one, but one thing that was disappointing was that there were parts of the code I had learned up to the previous lecture that were slightly different at the beginning of the next lecture, so I was confused when I was following along and learning. However, the explanation was well done and the materials were well organized, so even though I don't know Python, I was able to understand it by reading it line by line. Also, when I had a problem and asked the instructor, he helped me solve it through Google Meet, so I was very grateful. The content itself was a bit difficult for me, but I think it would be much faster and better for those who have some knowledge of Python or data analysis to understand it. I think the content is really good. I think you will make better lectures and I plan to take the second part.

    • danielyouk
      Instructor

      Luca! Thank you so much for your valuable review. When I met Luca at Google Meet, I could already feel that he was a great talent, and he already uses Java and Kotlin! I will reflect the content you mentioned and the slightly different codes in the middle of the lecture during the renewal. This is a valuable review that gave me a lot of room for improvement. I am still a new instructor, so I have a lot of ideas, but I am still struggling to turn my ideas into lectures at my own pace :) I will do my best to create new lectures and update existing ones. Let's run hard in Part 2 as well. Daniel Dream

  • snyouk3547님의 프로필 이미지
    snyouk3547

    Reviews 4

    Average Rating 5.0

    5

    38% enrolled

    A well-prepared, high-quality lecture. I liked the fresh content that I couldn't find anywhere else. It was easy to follow along because the explanations were step-by-step.

    • danielyouk
      Instructor

      Impact! Thank you. I think that instructors are motivated to continue creating the next lecture by the encouragement of their students. I think you left a review for my previous lecture as well. Thank you so much. Since you were able to follow along without difficulty, I think you are already skilled. When preparing a lecture, I often find a dilemma where the difficulty level increases when I try to make it as realistic as possible. However, I think that people like Impact need a lecture with a level of difficulty. I admit that the lecture is difficult, but I put a lot of effort into making it, so please ask questions at any time during the lecture if you have any difficulties. Fighting! Daniel Dream

  • byungukjeon5972님의 프로필 이미지
    byungukjeon5972

    Reviews 1

    Average Rating 5.0

    5

    8% enrolled

    It's easy to understand because you explained it calmly.

    • danielyouk
      Instructor

      Thank you. If you have any difficulties during the class, please leave a question on the Q&A board at any time. I hope you will complete the course.

  • furri8322님의 프로필 이미지
    furri8322

    Reviews 1

    Average Rating 5.0

    5

    6% enrolled

    It's a difficult subject, but it's helpful that you explain it calmly from a beginner's perspective. I plan to listen to it over and over again.

    • danielyouk
      Instructor

      Thank you so much for your kind review.

  • mirrorlaw0346님의 프로필 이미지
    mirrorlaw0346

    Reviews 49

    Average Rating 4.9

    5

    6% enrolled

    I like it a lot

    • danielyouk
      Instructor

      Thank you. I will try harder to provide better lectures.

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