Algorithmic Trading Syllabus
1. Market Knowledge
Algo trading ke liye financial markets ki samajh honi chahiye. Topics:
- Financial Instruments: Stocks, Futures, Options, Forex, Cryptocurrencies.
- Order Types: Market Order, Limit Order, Stop Loss Order, etc.
- Trading Terminologies: Spread, Slippage, Liquidity, Bid-Ask Price, etc.
- Technical Analysis:
- Price Action
- Support and Resistance
- Chart Patterns (Head and Shoulders, Double Top/Bottom)
- Candlestick Patterns (Doji, Hammer, Engulfing, etc.)
- Fundamental Analysis Basics: Earnings, Economic News, and Market Sentiments.
2. Programming Skills
Algo trading mein automation ke liye programming zaroori hai. Python sabse popular language hai.
Topics:
Basics:
- Variables, Data Types, and Loops
- Functions and Classes
- Libraries like pandas, numpy, matplotlib
Intermediate:
- File Handling (CSV, JSON)
- APIs (REST APIs for brokers like Zerodha, Binance, etc.)
- Data Cleaning and Preprocessing
Advanced:
- Technical Analysis Libraries: TA-Lib, yfinance, backtrader
- Strategy Building: Conditions for Buy/Sell
- Machine Learning Basics (optional but valuable): For predictive modeling
3. Trading Strategies & Indicators
Strategies ka development algo trading ka core hai. Common strategies aur indicators samajhna
zaroori hai:
Indicators:
1. Moving Averages (SMA, EMA, VWAP)
2. Bollinger Bands
3. Supertrend
4. RSI (Relative Strength Index)
5. MACD (Moving Average Convergence Divergence)
6. Fibonacci Retracements
Strategies:
1. Trend Following:
- Moving Average Crossover Strategy
- Supertrend Indicator
2. Mean Reversion:
- Bollinger Bands-based strategies
3. Arbitrage:
- Cross-exchange Price Differences
4. Breakout Strategy:
- Resistance Breakouts on Volume
4. Backtesting & Live Execution Tools
Algo trading ka success backtesting aur real-time execution pe depend karta hai. Tools aur
frameworks kaafi helpful rahenge:
Backtesting:
- Frameworks:
- Backtrader
- Zipline
- Metrics to Evaluate:
- Sharpe Ratio
- Maximum Drawdown
- Profit/Loss Percentage
Live Execution:
- APIs for Brokers:
- Zerodha Kite API (Indian Markets)
- Binance API (Cryptocurrency)
- Alpaca (US Stocks)
- Deployment:
- Cloud Services (AWS, Azure, GCP)
- Local Systems
Paper Trading (Demo):
- Use demo accounts for risk-free practice.
Suggested Stepwise Syllabus Roadmap
Phase 1: Foundation
1. Financial Markets Basics
2. Programming Basics (Python)
3. Intro to Technical Analysis
Phase 2: Strategy Development
1. Study Indicators (Supertrend, Moving Averages, etc.)
2. Develop Basic Strategies
3. Backtesting Concepts
Phase 3: Backtesting & Optimization
1. Use Backtrader for strategy testing
2. Analyze backtest results
3. Optimize strategies for better performance
Phase 4: API & Automation
1. Learn APIs for brokers (Binance, Zerodha, Alpaca)
2. Write scripts to automate trades
3. Test on demo accounts
Phase 5: Deployment
1. Deploy scripts on cloud or VPS
2. Monitor performance
3. Refine strategies based on live trading data
Resources for Learning
Books:
- "Algorithmic Trading" by Ernest Chan
- "Trading Systems and Methods" by Perry J. Kaufman
Online Courses:
- Coursera: "Algorithmic Trading in Python"
- Udemy: "Python for Financial Analysis and Algorithmic Trading"
Practice Platforms:
- TradingView (Pine Script for scripting)
- QuantConnect
