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How to Analyze Financial Data with Python
What is yahoo finance?. Yahoo Finance data is through the yfinance library — a powerful, unofficial API wrapper that makes it easy to fetch financial data for analysis, modeling, or trading strategies. yfinance is a Python package that allows you to: 1. Install yahoo finance library Example: loading financial data from yahoo finance What is pandas Pandas is a powerful open-source Python library used for data manipulation and analysis. It’s built on top of NumPy and is especially well-suited for working with structured data like time series, tabular data (think Excel spreadsheets), and financial datasets — which makes it a favorite in the world of algorithmic trading. How Pandas Helps…
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How to Calculate Simple Buy And Hold Strategy in Python
This Python script loads historical stock or index data (like the Nifty index) from a CSV file, processes it to calculate daily logarithmic returns, and visualizes both the raw prices and derived returns using plots and histograms. It then computes cumulative returns to simulate the performance of a long-term investment. Through the use of pandas, numpy, and matplotlib, it offers both numerical insights and clear visualizations to help analyze the asset’s behavior over time. 1.Importing Libraries 2. Reading the Data 3. Plotting the Data 4. Calculating Logarithmic Returns 5. Cleaning Data 6. Visualizing Returns 7. Cumulative Return Calculations 8. Adding and Plotting Cumulative Returns Example: full program to calculate stock…
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What is algo trading ?
Algo Trading is a method of trading in the stock market where computer programs automatically place buy and sell orders based on pre-defined rules. These rules are created using mathematical models, technical indicators, or market conditions. Two major aspects of algo trading . 1. Clear Strategy 2. Automated trading How Does Algo Trading Work? Advantages of Algo Trading Risks of Algo Trading Note:- To effectively implement algorithmic trading strategies, a foundational understanding of Python programming is essential . What is Python? Python is a high-level, interpreted, and general-purpose programming language known for its simplicity and readability. Python is widely used in web development, data science, machine learning, automation, and more.…