You're reading from Hands-On Financial Trading with Python A practical guide to using Zipline and other Python libraries for backtesting trading strategies

Product type Paperback

Published in Apr 2021

Publisher Packt

ISBN-13 9781838982881

Length 360 pages

Edition 1st Edition

Languages

Python

Tools

NumPy

Concepts

Data Analysis

Authors (2):

Sourav Ghosh

Jiri Pik

Preface

1. Section 1: Introduction to Algorithmic Trading

2. Chapter 1: Introduction to Algorithmic Trading FREE CHAPTER

3. Section 2: In-Depth Look at Python Libraries for the Analysis of Financial Datasets

4. Chapter 2: Exploratory Data Analysis in Python

5. Chapter 3: High-Speed Scientific Computing Using NumPy

6. Chapter 4: Data Manipulation and Analysis with pandas

7. Chapter 5: Data Visualization Using Matplotlib

8. Chapter 6: Statistical Estimation, Inference, and Prediction

9. Section 3: Algorithmic Trading in Python

10. Chapter 7: Financial Market Data Access in Python

11. Chapter 8: Introduction to Zipline and PyFolio

12. Chapter 9: Fundamental Algorithmic Trading Strategies

13. Other Books You May Enjoy

Appendix A: How to Setup a Python Environment

Introduction to risk management with PyFolio

Having a risk management system is a fundamental part of having a successful algorithmic trading system.

Various risks are involved in algorithmic trading:

Market risk: While all strategies lose money at some point in their life cycle, quantifying risk measures and ensuring there are risk management systems in place can mitigate strategy losses. In some cases, bad risk management can increase trading losses to an extreme and even shut down successful trading firms completely.
Regulatory risk: This is the risk that stems from either accidentally or intentionally violating regulations. It is designed to enforce smooth and fair market functionality. Some well-known examples include spoofing, quote stuffing, and banging the close.
Software implementation risk: Software development is a complex process and sophisticated algorithmic trading strategy systems are especially complex. Even seemingly minor software bugs can lead...