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Python for Algorithmic Trading: From Idea to Cloud Deployment
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Algorithmic trading, once the exclusive domain of institutional players, is now open to small organizations and individual traders using online platforms. The tool of choice for many traders today is Python and its ecosystem of powerful packages. In this practical book, author Yves Hilpisch shows students, academics, and practitioners how to use Python in the fascinating field of algorithmic trading.
You'll learn several ways to apply Python to different aspects of algorithmic trading, such as backtesting trading strategies and interacting with online trading platforms. Some of the biggest buy- and sell-side institutions make heavy use of Python. By exploring options for systematically building and deploying automated algorithmic trading strategies, this book will help you level the playing field.
- Set up a proper Python environment for algorithmic trading
- Learn how to retrieve financial data from public and proprietary data sources
- Explore vectorization for financial analytics with NumPy and pandas
- Master vectorized backtesting of different algorithmic trading strategies
- Generate market predictions by using machine learning and deep learning
- Tackle real-time processing of streaming data with socket programming tools
- Implement automated algorithmic trading strategies with the OANDA and FXCM trading platforms
- ISBN-10149205335X
- ISBN-13978-1492053354
- Edition1st
- PublisherO'Reilly Media
- Publication dateDecember 22, 2020
- LanguageEnglish
- Dimensions7.25 x 0.75 x 9.25 inches
- Print length378 pages
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From the Publisher
From the Preface
Finding the right algorithm to automatically and successfully trade in financial markets is the holy grail in finance. Not too long ago, algorithmic trading was only available and possible for institutional players with deep pockets and lots of assets under management. Recent developments in the areas of open source, open data, cloud compute, and cloud storage, as well as online trading platforms, have leveled the playing field for smaller institutions and individual traders, making it possible to get started in this fascinating discipline while equipped only with a typical notebook or desktop computer and a reliable internet connection.
Nowadays, Python and its ecosystem of powerful packages is the technology platform of choice for algorithmic trading. Among other things, Python allows you to do efficient data analytics (with pandas, for example), to apply machine learning to stock market prediction (with scikit-learn, for example), or even to make use of Google’s deep learning technology with TensorFlow.
This is a book about Python for algorithmic trading, primarily in the context of alpha generating strategies (see Chapter 1). Such a book at the intersection of two vast and exciting fields can hardly cover all topics of relevance. However, it can cover a range of important meta topics in depth.
These topics include:
- Financial data: Financial data is at the core of every algorithmic trading project. Python and packages like NumPy and pandas do a great job of handling and working with structured financial data of any kind (end-of-day, intraday, high frequency).
- Backtesting: There should be no automated algorithmic trading without a rigorous testing of the trading strategy to be deployed. The book covers, among other things, trading strategies based on simple moving averages, momentum, mean-reversion, and machine/deep-learning based prediction.
- Real-time data: Algorithmic trading requires dealing with real-time data, online algorithms based on it, and visualization in real time. The book provides an introduction to socket programming with ZeroMQ and streaming visualization.
- Online platforms: No trading can take place without a trading platform. The book covers two popular electronic trading platforms: Oanda and FXCM.
- Automation: The beauty, as well as some major challenges, in algorithmic trading results from the automation of the trading operation. The book shows how to deploy Python in the cloud and how to set up an environment appropriate for automated algorithmic trading.
Who This Book Is For
This book is for students, academics, and practitioners alike who want to apply Python in the fascinating field of algorithmic trading. The book assumes that the reader has, at least on a fundamental level, background knowledge in both Python programming and in financial trading. For reference and review, the Appendix A introduces important Python, NumPy, matplotlib, and pandas topics.
The following are good references to get a sound understanding of the Python topics important for this book.
Financial Theory with Python: A Gentle Introduction
|
Python for Finance: Mastering Data-Driven Finance
|
Python for Algorithmic Trading: From Idea to Cloud Deployment
|
Artificial Intelligence in Finance: A Python-Based Guide
|
Reinforcement Learning for Finance: A Python-Based Introduction
|
|
|---|---|---|---|---|---|
| Customer Reviews |
4.3 out of 5 stars 38
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4.6 out of 5 stars 323
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4.4 out of 5 stars 151
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4.5 out of 5 stars 66
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5.0 out of 5 stars 4
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| Also by Yves Hilpisch | A Gentle Introduction | Mastering Data-Driven Finance | From Idea to Cloud Deployment | A Python-Based Guide | A Python-Based Introduction |
Editorial Reviews
About the Author
Product details
- Publisher : O'Reilly Media
- Publication date : December 22, 2020
- Edition : 1st
- Language : English
- Print length : 378 pages
- ISBN-10 : 149205335X
- ISBN-13 : 978-1492053354
- Item Weight : 2.31 pounds
- Dimensions : 7.25 x 0.75 x 9.25 inches
- Best Sellers Rank: #220,510 in Books (See Top 100 in Books)
- #26 in Business Accounting Software Computer
- #39 in Computer Algorithms
- #71 in Programming Algorithms
- Customer Reviews:
About the author

Dr. Yves J. Hilpisch is founder and CEO of The Python Quants (http://tpq.io), a group focusing on the use of open source technologies for financial data science, artificial intelligence, algorithmic trading, and computational finance. He is also the founder and CEO of The AI Machine (http://aimachine.io), a company focused on AI-powered algorithmic trading based on a proprietary strategy execution platform.
Yves has a Diploma in Business Administration, a Ph.D. in Mathematical Finance and is Adjunct Professor for Computational Finance.
Yves is the author of five books (https://home.tpq.io/books):
* Artificial Intelligence in Finance (O’Reilly, forthcoming)
* Python for Algorithmic Trading (O’Reilly, forthcoming)
* Python for Finance (2018, 2nd ed., O’Reilly)
* Listed Volatility and Variance Derivatives (2017, Wiley Finance)
* Derivatives Analytics with Python (2015, Wiley Finance)
Yves is the director of the first online training program leading to University Certificates in Python for Algorithmic Trading (https://home.tpq.io/certificates/pyalgo) and Computational Finance (https://home.tpq.io/certificates/compfin). He also lectures on computational finance, machine learning, and algorithmic trading at the CQF Program (http://cqf.com).
Yves is the originator of the financial analytics library DX Analytics (http://dx-analytics.com) and organizes Meetup group events, conferences, and bootcamps about Python, artificial intelligence and algorithmic trading in London (http://pqf.tpq.io), New York (http://aifat.tpq.io), Frankfurt, Berlin, and Paris. He has given keynote speeches at technology conferences in the United States, Europe, and Asia.


















