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Why Python Is Used For Developing Automated Trading Strategy?

Last Updated : 07 Jan, 2020
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Python is a high-level programming language that is more deployed in machine learning and for automation of trading systems. Python has got exclusive library functions that facilitate ease of coding the algorithmic trading strategies. This article is all about why python programming language is preferred in developing a customized automated trading system. Sounds interesting? Dig in to learn more!. Let see in detail the benefits of Python in stock market trading.


Why is Python used in Trading?

  • Python is preferred over C in trading is that it can evaluate mathematical models quickly as it is a functional programming language.
  • It has got the dense inbuilt library functions to compute the statistical methods within minutes.
  • Time is a crucial factor in high-frequency trading(HFT), as algorithmic trading deployed in HFT for accumulating wealth; Python codes run the mathematical models in the trading strategy in very less time compared to other programming languages.
  • Python is fast and flexible.

How to do Algorithmic Trading with Python?

PyAlgoTrade is an exclusive algorithmic trading library function that focuses on paper trading, backtesting, live trading, and technical analysis. It allows you to run your trading strategy, test for backdated facts and evaluate the behavior of the plan. It simplifies more complicated methodologies in trading activity. It executes every function of a trading strategy with less time and effort. It is an absolute free opensource trading library function that is licensed under Apache License Version 2.0.
It has got the Technical indicators, highly scalable, curates performance metrics and TA-Lib integration that is a real-time technical analysis of trading activity.

Python Coders for Trading

Python is largely deployed in investment banks and day trading stock brokers. It discards numerous laborious and complex methods in the traditional trading system. Algorithmic trading is surging high in stock exchanges. Python coding has become an asset in trading industries. You could develop your algorithmic trading strategy and get your code to get licensed for real-time trading. Quant developers and researchers are in high demand in stock trading banks and financial institutions.
Python programmers are being hunted in the trading industry. Solving problems with the latest technological tools to arrive in maximum gains is the trend keeping up in the stock market. People with craft python skills who could solve the real-life glitches in trading are most wanted in the financial institutions.

Python for Financial Analysis

Python has got a massive base of library function for complex scientific computation. Financial and technical analysis would be made easy with Python in hand. Scientific libraries like Scipy, numpy, pandas, matplotlib, quantopian, Zipline, TA-Lib, Pybacktest contribute a lot in developing a hassle-free trading strategy. SpyderIDE facilitates a huge set of data visualization models for ease of financial analysis.

Python and Data Science in Algo Trading Bot

Date series data and Time series data are more important factors in trading. It is also time consumable with hectic computations. With Python data science library functions you can formulate the mathematical models at ease. Tensorflow, seaborn, scikit learn, Keras, plotly, stats models are key libraries in data mining and manipulations in trading activity with Python.

Why is Python so specific when it comes to trading bot?

  • Python is a cross-platform compatible language, it’s also an open-source ware with a hefty package of rich library functions that is more suitable to monitor the market activity in a trading session. It comes with a functional programming tool that could facilitate establishing any imaginable task.
  • Python has a research environment that offers quant developers to check with numerous data points. N number of the task could be established with Python’s rich APIs and libraries at the same time. Which is very crucial in an automated high-frequency trading environment.
  • It facilitates ease of data mining and backtesting. Manipulating huge data sets, Technical analysis of market data, plotting the structures, machine learning, backtesting, data collection, and curation could be managed easily with Python’s vast exploratory research environment.

Quant Strategy With Python

Creating an automated trading strategy with python would be easier compared to other programming languages, you could have various collection of tools and library functions to support you through developing a successful quant strategy. Numpy, Pandas, will help you through every process of data curation and backtesting in developing a real-time trading application that could be more compatible with interface the Forex broker software.

Python has got versatile modules that facilitate ease of coding and problem-solving in almost every industry. The stock market is the place where funds are more liquid and the transactions should be of utmost prudent. Deploying accuracy and speed are very crucial to land in maximum gains. With the help of python, people could achieve in developing more viable and prudent algorithms that could trace the market activity now and then to accumulate hefty gains.

Thus Python is more industry-specific towards algorithmic trading, Data Science, and Machine Learning. It’s functional programming capacity rules the stock market world making it an asset in the industry. Learn Python for Algorithmic trading and develop your trading strategy now!.

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