Build a Super Advanced Trading Bot on DYDX Hosted on AWS with Python - Statistical Arbitrage and Cointegration

Build a Super Advanced Trading Bot on DYDX Hosted on AWS with Python - Statistical Arbitrage and Cointegration

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Interactive Video

Information Technology (IT), Architecture, Business

University

Hard

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The video tutorial introduces pairs trading, a strategy that leverages the price difference between two assets, specifically in the crypto market on the dydx exchange. Unlike traditional strategies that rely on market direction, pairs trading focuses on the mathematical relationship between assets. The tutorial highlights the advantages of this objective, math-based approach, which is often used in large institutions but not widely discussed. It explains the concept of co-integration, which is crucial for identifying trading opportunities, and demonstrates how to use Python's statsmodels library to perform co-integration analysis without complex math.

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OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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