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Hands-On AI Trading with Python, QuantConnect, and AWS
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Master the art of AI-driven algorithmic trading strategies through hands-on examples, in-depth insights, and step-by-step guidance
Hands-On AI Trading with Python, QuantConnect, and AWS explores real-world applications of AI technologies in algorithmic trading. It provides practical examples with complete code, allowing readers to understand and expand their AI toolbelt.
Unlike other books, this one focuses on designing actual trading strategies rather than setting up backtesting infrastructure. It utilizes QuantConnect, providing access to key market data from Algoseek and others. Examples are available on the book's GitHub repository, written in Python, and include performance tearsheets or research Jupyter notebooks.
The book starts with an overview of financial trading and QuantConnect's platform, organized by AI technology used:
- Examples include constructing portfolios with regression models, predicting dividend yields, and safeguarding against market volatility using machine learning packages like SKLearn and MLFinLab.
- Use principal component analysis to reduce model features, identify pairs for trading, and run statistical arbitrage with packages like LightGBM.
- Predict market volatility regimes and allocate funds accordingly.
- Predict daily returns of tech stocks using classifiers.
- Forecast Forex pairs' future prices using Support Vector Machines and wavelets.
- Predict trading day momentum or reversion risk using TensorFlow and temporal CNNs.
- Apply large language models (LLMs) for stock research analysis, including prompt engineering and building RAG applications.
- Perform sentiment analysis on real-time news feeds and train time-series forecasting models for portfolio optimization.
- Better Hedging by Reinforcement Learning and AI: Implement reinforcement learning models for hedging options and derivatives with PyTorch.
- AI for Risk Management and Optimization: Use corrective AI and conditional portfolio optimization techniques for risk management and capital allocation.
Written by domain experts, including Jiri Pik, Ernest Chan, Philip Sun, Vivek Singh, and Jared Broad, this book is essential for hedge fund professionals, traders, asset managers, and finance students. Integrate AI into your next algorithmic trading strategy with Hands-On AI Trading with Python, QuantConnect, and AWS.
- ISBN-101394268432
- ISBN-13978-1394268436
- Edition1st
- PublisherWiley
- Publication dateJanuary 29, 2025
- LanguageEnglish
- Dimensions7.1 x 0.9 x 10 inches
- Print length416 pages
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From ChatGPT to agentic AI, quantum computing to prompt engineering, large language models, the ethics of AI, and beyond, Wiley has the guides you need to join the AI revolution and make artificial intelligence work for you.
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AI & Finance
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From the Publisher
Modern, Hands-on Approach to AI in Trading
"Hands-On AI Trading with Python, QuantConnect, and AWS" is a practical guide that bridges the gap between AI theory and real-world trading applications. Focusing on intuition and hands-on experience, the book uses QuantConnect's cloud-based platform to streamline AI strategy development by avoiding technical complexities like data management or infrastructure setup. It covers a wide range of techniques, including machine learning, deep learning, and reinforcement learning, applied to practical trading scenarios. Printed in full color, it enhances understanding with detailed charts and code snippets, making advanced concepts accessible to both beginners and professionals in quantitative finance.
A Comprehensive Suite of Examples
Our book features over 20 complete AI trading algorithms, addressing key techniques like trend detection, regime classification, and reinforcement learning for optimal hedging. Examples progress from basic concepts to advanced applications using Python with TensorFlow, PyTorch, and scikit-learn, all on the QuantConnect platform for backtesting and live trading.
Technologies covered include Machine Learning (Random Forests, SVMs, Gaussian Processes), Deep Learning (CNNs, RNNs, Transformers), Reinforcement Learning, Natural Language Processing, Time Series Analysis, and Clustering.
Examples include: ML Trend Scanning with MLFinlab, Factor Preprocessing Techniques for Regime Detection, Reversion vs. Trending: Strategy Selection by Classification, Alpha by Hidden Markov Models, FX SVM Wavelet Forecasting, and more. Each includes detailed explanations, code, and discussions on practical considerations, equipping readers to master AI in quantitative finance.
Practically Introduces Quantitative Concepts
Our book goes beyond coding exercises, integrating key concepts like risk management, portfolio optimization, and corporate actions directly into AI trading strategies. We explore techniques like Corrective AI and Conditional Parameter Optimization to dynamically adapt strategies to volatile markets and demonstrate how AI can predict and capitalize on events like mergers and dividends. Emphasizing transaction costs, slippage, and real-world frictions, we ensure readers are equipped to transition seamlessly from backtesting to live trading with adaptive, robust systems.
Rich Additional Content and Community
To enhance the value of our book, we provide extensive resources, including a GitHub repository with all code examples, actively maintained for compatibility with QuantConnect and Python libraries. Readers can engage with a vibrant community through forums, webinars, and social media, fostering collaboration and continuous learning. Additional online resources, such as extended datasets, articles, and video tutorials, dive into advanced topics and emerging AI trading trends. Our close ties with QuantConnect ensure readers have access to the platform’s latest features, creating a comprehensive learning experience that blends cutting-edge techniques, practical finance concepts, and a supportive ecosystem.
Editorial Reviews
From the Inside Flap
Revolutionize Your Trading with Artificial Intelligence
Hands-On AI Trading with Python™, QuantConnect™, and AWS™ is a comprehensive guide that bridges the gap between cutting-edge artificial intelligence and the dynamic world of quantitative trading. The authors, Jiri Pik, Ernest P. Chan, Jared Broad, Philip Sun, and Vivek Singh, deliver a practical, data-driven roadmap to modern algorithmic trading, featuring over 20 fully implemented real-world examples to ignite your creativity and serve as a launchpad for your ideas.
This book demystifies the complexities of algorithmic trading by leveraging QuantConnect™ to backtest, optimize, and deploy trading strategies. Unlike conventional resources, this book provides fully implemented Python™ examples, empowering you to focus on innovation over infrastructure.
What’s Inside?
The book is packed with practical ways to set up data and use AI models in your trading, including Support Vector Machines for price trend forecasting, Convolutional Neural Networks (CNNs) for pattern recognition in stock prices, Markov Chains for dynamic asset allocation, Gaussian Naive Bayes for risk classification, and Reinforcement Learning for optimal trading strategies.
Technologies are illustrated with real-world examples, including mean-reversion pairs trading strategies, momentum-based equity trading strategies, volatility-based options strategies, dynamic hedging, portfolio optimization, and asset class selection using Principal Component Analysis (PCA).
Accompanied by a GitHub repository with source code and strategy results, readers can rapidly test, refine, and experiment with strategies.
Who Should Read This Book?
Whether you’re a seasoned hedge fund professional, an asset manager, or a graduate student in finance, Hands-On AI Trading with Python™, QuantConnect™, and AWS™ equips you with actionable tools to integrate AI into your trading workflows. This book is essential for anyone aiming to excel in today’s competitive financial markets.
Take control of your trading future today― get your copy and leverage AI to transform your strategies.
From the Back Cover
Praise for HANDS-ON AI TRADING
“A must-have for algorithmic traders and students, this book emphasizes designing trading strategies with QuantConnect™. Featuring Python™ examples and advanced AI/ML models, it offers a clear and accessible presentation ideal for anyone in quantitative finance.”
―PETTER N. KOLM, Professor, Courant Institute of Mathematical Sciences, New York University; Awarded “Quant of the Year” in 2021
“This concise guide provides a gentle introduction with hands-on examples and expert insights into dissecting and evaluating trades from seasoned traders. The code will make otherwise complex or confusing examples clear. It is an excellent springboard for developing your own strategies.”
―MICHAEL ROBBINS, Author of Quantitative Asset Management
“This is the book I wish I had when starting out, it would have saved me years! It offers rare insights and practical tutorials, allowing the next generation of quants to stand on the shoulders of giants.”
―JACQUES JOUBERT, Quant Researcher and Developer, Co-Founder and CEO of Hudson and Thames Quantitative Research
“The book ties both theory and industry together while providing code, output, and a platform to implement AI models in a trading environment. Cookbook style makes it a great book for those new to machine learning and AI in quantitative finance.”
―DIMITRI BIANCO, Head of Quant Risk and Research, Agora Data, Inc.
“As a novice trader myself, I have been looking for ways to apply AI in real-world trading scenarios. This book does an excellent job in explaining trading concepts and mapping these to AI concepts to build trading strategies. A must-read if you want to use AI for building wealth.”
―RAJNEESH SINGH, Director, Amazon SageMaker
“This book is an excellent resource for learning machine learning and AI for quantitative trading. The authors’ practical guidance helps in creating strategies, building portfolios, and managing risks with QuantConnect’s™ support.”
―JASON JIE SHENG LIM, CFA, FRM, Risk Data Scientist
“This comprehensive guide masterfully bridges the gap between AI technology and practical trading applications, offering finance professionals valuable insights for developing robust, data-driven trading strategies.”
―CHRIS BARTLETT, CEO, Algoseek.com
About the Author
JIRI PIK: Founder and CEO of RocketEdge.com. A software architect and cloud computing expert, Jiri Pik specializes in designing high-performance trading systems. He has decades of experience in financial technologies and has worked with some of the world’s leading financial institutions, including Goldman Sachs and JPMorgan Chase.
ERNEST P. CHAN: A pioneer in applying machine learning to quantitative trading, Ernest P. Chan founded Predictnow.ai and QTS Capital Management. He is author of books such as Quantitative Trading and Machine Trading.
JARED BROAD: Founder and CEO of QuantConnect™, Jared Broad has empowered over 300,000 algorithmic traders worldwide with a platform that simplifies strategy design, backtesting, and live deployment.
PHILIP SUN: CEO and Co-founder of Adaptive Investment Solutions, LLC, and a seasoned quantitative fund manager, Philip Sun and his team focus on building state-of-the-art AI-driven risk management platform for wealth advisors and institutional investors.
VIVEK SINGH: A product leader at Amazon Web Services (AWS), Vivek Singh spearheads the development of large language models (LLMs) and Generative AI applications, bringing cutting-edge AI technologies to the trading domain.
Product details
- Publisher : Wiley
- Publication date : January 29, 2025
- Edition : 1st
- Language : English
- Print length : 416 pages
- ISBN-10 : 1394268432
- ISBN-13 : 978-1394268436
- Item Weight : 2.3 pounds
- Dimensions : 7.1 x 0.9 x 10 inches
- Best Sellers Rank: #152,777 in Books (See Top 100 in Books)
- #298 in Investment Analysis & Strategy
- #862 in Business & Finance
- Customer Reviews:
About the authors

Jiri Pik is a leading innovator in the field of algorithmic trading. With extensive experience in the financial industry, Jiri has established himself as a true expert in developing and implementing cutting-edge trading strategies. He is the author of two highly acclaimed books, "Hands-On Financial Trading with Python" and "Hands-On AI Trading with Python, QuantConnect, and AWS," both of which have become indispensable resources for traders and developers seeking to master the art of automated trading. Jiri's passion for sharing his knowledge and empowering others has made him a sought-after speaker and educator in the field.

Ernest Chan (Ernie) is the founder and chief scientific officer of Predictnow dot ai, a machine learning SaaS and consultancy for risk management and adaptive optimization. He started his career as a machine learning researcher at IBM’s T.J. Watson Research Center’s Human Language Technologies group, which produced some of the best-known quant fund managers. He was also one of the first few employees of Morgan Stanley’s AI group. He is the founder and non-executive chairman of QTS Capital Management, a quantitative CPO/CTA, and the acclaimed author of several books on quantitative trading, all published by Wiley. He obtained his PhD in physics from Cornell University and his BS in physics from the University of Toronto.

New Zealand biomedical engineer living in Miami. CEO and founder of QuantConnect. QuantConnect empowers quants, independent investors, and trading firms to build institutional caliber quantitative trading strategies for 1% of the cost.
We embrace a radical, fully open-source philosophy - building an ecosystem of 300,000 engineers and funds who leverage our technology to quickly and affordably do sophisticated analysis. Our open-source engine, LEAN, will be the operating system powering quantitative investment funds.

Philip Sun is a fintech entrepreneur, teacher of mathematical finance, quant trader and hedge fund manager and leader of research and investment teams with over 27 years of professional experience. Philip currently is the CEO and cofounder of Adaptive Investment Solutions, LLC; and an adjunct professor, teaching Algorithmic and High-Frequency Trading in the Master of Science in the Master of Science in Mathematical Finance & Financial Technology program at Boston University.
Philip holds an MBA from the Wharton School of University of Pennsylvania, PhD in Physics from Carnegie Mellon University, and Dual Bachelor Degree in Mathematics and Physics from Stony Brook University.

Vivek Singh is a Product leader at Amazon Web Services (AWS). He leads the development and growth of large language models (LLMs) and Generative AI application evaluation services, at AWS, to enable enterprises build scalable generative AI applications and improve AI safety, trust and responsible use. His area of expertise in technology, lies in LLM architectures, model evaluation, machine learning, pre-training and fine-tuning techniques. Prior to AWS, Vivek built his investment experience working at a large hedge fund, performing fundamental stock analysis, and covering multiple sectors including aerospace and defense, online retail, and travel and lodging. Vivek is passionate about using technology to democratize finance by spreading awareness and education on financial concepts and the power of investing in improving financial health and security for everyone. His field of interest in investing, lies in macroeconomics, fundamental stock analysis and value investing.








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