FinTech 15-1 Algorithmic Trading

Which were the class objectives for Algorithmic Trading day 1?

• Define what a trading signal and backtesting are, how they're used, and why they're important.

• Build a trading dashboard to visualize the multiple components of algorithmic trading.

• Test algorithms through Monte Carlo simulations.

• Construct a dual moving average crossover trading signal.

Which is the most important distinction between human traders and algorithmic trading?

• Humans are better at interpreting Tweets.

• Algorithms can make better predictions and without emotion.

• Humans understand human factors better.

• Algorithms can act quicker than humans.

Which are core components of all trading algorithms?

• Obtaining the data

• Evaluating the results

• Predicting the trends

• Making a trading decision

Which function produces a datetime index consisting only of business days?

• pd.bus_date()

• pd.bus_range()

• pd.bdate()

• pd.bdate_range()

Which is an investment discipline in which investments (such as stocks) are evaluated based on their intrinsic qualities such as financial (income statement, balance sheet, and cash flow statement) or economic data about the underlying company.

• Technical analysis

• Fundamental analysis

• Vertical analysis

• Scenario analysis

A 20-day simple moving average is an example of what?

• Technical indicator

• Trading signal

• Crossover strategy

• Backtesting

Which is the process for measuring the overall performance of a trading strategy using historical prices.

• Technical indicator

• Trading signal

• Crossover strategy

• Backtesting

Which metric(s) focuses on downside risk?

• Cumulative return

• Downside deviation

• Sharpe Ratio

• Sortino Ratio

How was Algorithmic Trading day 1 for you?

Any suggestions for improvement?