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WorksheetsFinTech 15-1 Algorithmic Trading
Total questions: 10
Worksheet time: 11mins
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?
