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How do I get started with algorithmic trading as a complete beginner?

AI Summary

I've always been fascinated by the world of trading and I'm looking to get started with algorithmic trading. I have a basic understanding of programming concepts, but I've never actually traded before. I've been reading about different trading strategies and platforms, but I'm feeling a bit overwhelmed by all the information out there.

I'm interested in learning more about the technical aspects of algorithmic trading, such as how to backtest strategies and implement them in a live trading environment. I've heard that platforms like QuantConnect and Zipline are popular among traders, but I'm not sure which one would be best for me to start with.

I'd love to hear from experienced traders who have been in my shoes before. Can anyone recommend some good resources for learning about algorithmic trading, and what are some common pitfalls that I should avoid as a beginner? Are there any specific strategies or platforms that you would recommend for someone just starting out?

1 Answer
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Welcome to the world of algorithmic trading. As a complete beginner, it's great that you're taking the first step by seeking guidance. I'm more than happy to help you get started. First, let's break down the basics of algorithmic trading. It involves using computer programs to automate trading decisions, which can be based on various strategies such as trend following, mean reversion, or statistical arbitrage.

To get started, you'll need to learn about programming languages such as Python, which is a popular choice among traders. You can start by learning the basics of Python and then move on to libraries such as backtrader or zipline that are specifically designed for backtesting and implementing trading strategies. For example, you can use the backtrader library to create a simple moving average crossover strategy: class SmaCross(bt.Strategy):

params = (('fast', 5), ('slow', 15),) def __init__(self): sma_fast = bt.ind.SMA(period=self.p.fast) sma_slow = bt.ind.SMA(period=self.p.slow) self.crossover = bt.ind.CrossOver(sma_fast, sma_slow)

Once you have a basic understanding of programming and trading strategies, you can start exploring different platforms such as QuantConnect and Zipline. Both platforms have their own strengths and weaknesses, and the choice ultimately depends on your personal preferences and goals. QuantConnect, for example, offers a cloud-based backtesting environment and a large community of developers who contribute to the platform. Zipline, on the other hand, is a Pythonic algorithmic trading library that provides a simple and intuitive API for backtesting and executing trading strategies.

In terms of resources, there are many online communities and forums dedicated to

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