Financial Analysis - Build a ChatGPT Pairs Trading Bot - Extending the Position (Code)

The lecture focuses on extending a trading signal to improve cumulative returns, which initially appear flat due to inactivity. The process involves modifying asset positions and using forward fill with NANS instead of zeros. This adjustment leads to a significant increase in returns, demonstrating the algorithm's improved performance over a buy-and-hold strategy.

What is the main problem being addressed in the lecture?

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What changes need to be made to asset positions according to the lecture?

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Why is it necessary to replace zeros with NaNs before forward filling?

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How did the return change after extending the trading signal?

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What does the algorithm's performance look like after the adjustments?

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