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Learn Algorithmic Trading

You're reading from   Learn Algorithmic Trading Build and deploy algorithmic trading systems and strategies using Python and advanced data analysis

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Product type Paperback
Published in Nov 2019
Publisher Packt
ISBN-13 9781789348347
Length 394 pages
Edition 1st Edition
Languages
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Authors (2):
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Sebastien Donadio Sebastien Donadio
Author Profile Icon Sebastien Donadio
Sebastien Donadio
Sourav Ghosh Sourav Ghosh
Author Profile Icon Sourav Ghosh
Sourav Ghosh
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Toc

Table of Contents (17) Chapters Close

Preface 1. Section 1: Introduction and Environment Setup FREE CHAPTER
2. Algorithmic Trading Fundamentals 3. Section 2: Trading Signal Generation and Strategies
4. Deciphering the Markets with Technical Analysis 5. Predicting the Markets with Basic Machine Learning 6. Section 3: Algorithmic Trading Strategies
7. Classical Trading Strategies Driven by Human Intuition 8. Sophisticated Algorithmic Strategies 9. Managing the Risk of Algorithmic Strategies 10. Section 4: Building a Trading System
11. Building a Trading System in Python 12. Connecting to Trading Exchanges 13. Creating a Backtester in Python 14. Section 5: Challenges in Algorithmic Trading
15. Adapting to Market Participants and Conditions 16. Other Books You May Enjoy

Understanding the terminology and notations

To develop ideas quickly and build an intuition regarding supply and demand, we have a simple and completely hypothetical dataset of height, weight, and race of a few random samples obtained from a survey. Let's have a look at the dataset:

Height (inches)

Weight (lbs)

Race (Asian/African/Caucasian)

72

180

Asian

66

150

Asian

70

190

African

75

210

Caucasian

64

150

Asian

77

220

African

70

200

Caucasian

65

150

African

 

Let's examine the individual fields:

  • Height in inches and weight in lbs are continuous data types because they can take on any values, such as 65, 65.123, and 65.3456667.
  • Race, on the other hand, would be an example of a categorical data type, because there are a finite number of possible values that can go in the field. In this...
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