Implementing the Financial Fortress trading strategy – a data-driven approach using Python and Power BI

This strategy symbolizes the strength and resilience that we seek in the banks that we will be investing in. It will leverage both traditional financial metrics and NLP insights from social media sentiments, taking advantage of the metrics that were most critical to gauge the financial health of SVB.

The Financial Fortress trading strategy is a comprehensive method that combines the analysis of financial metrics, such as the Capital Adequacy Ratio (CAR), and sentiment data from social media platforms such as Twitter (now X). This strategy provides a set of specific trade triggers, which, when combined with a periodic portfolio rebalancing routine and proper risk management measures, can help achieve consistent investment outcomes.

The steps for this strategy are as follows.

The selection of the financial metric

We will use the CAR as our hard financial indicator...