A scripting language is necessary for creating a prototype of the code for quant traders. Considering that,
- Significant role for Python is important in overall trading process
- Python is used for quant model prototyping, especially by quant trading teams in banks and hedge funds.
Why do quant traders favor Stock trading in Python?
They gain from using Python for Trading because it helps in:
- develop custom data interfaces,
- execution methods,
- risk and order management,
- walk-forward analysis,
- and optimization testing modules.
When deciding between open-source and proprietary technologies, algorithmic trading engineers frequently struggle.To keep current in the financial world of today, finance professionals are enrolling in Python for Trading courses. The days of having separate departments for finance specialists and computer programmers are long gone.
After going through the advantages of using Python, let’s understand how you can start using it. Let’s talk about the various components of Python.
- Anaconda
Anaconda is a distribution of Python, which means that it consists of all the tools and libraries required for the execution of our Python code. Downloading & installing libraries and tools individually can be a tedious task, which is why we install Anaconda. Anaconda consists of a majority of the Python packages which can be directly loaded to the IDE to use them.
- Spyder IDE
IDE or Integrated Development Environment is a software platform for Python where we can write and execute our codes. It basically consists of a code editor, to write codes, a compiler or interpreter to convert our code into machine-readable language. It has a debugger to identify any bugs or errors in your code. Spyder IDE can be used to create multiple projects of Python.
- Jupyter Notebook
Jupyter is an open-source application for Python that allows us to create, write and implement codes in a more interactive format. It can be used to test small chunks of code, whereas we can use the Spyder IDE to implement bigger projects.
- Conda
Conda is a package management system for Python which can be used to install, run and update Python libraries.
Python is commonly used in trading as well as machine learning. Everything needed to start using Python for trading has been covered in this post. Learning Python will enable you to create and test your own Stock trading methods with Python.