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Learn Algorithmic Trading

You're reading from  Learn Algorithmic Trading

Product type Book
Published in Nov 2019
Publisher Packt
ISBN-13 9781789348347
Pages 394 pages
Edition 1st Edition
Languages
Authors (2):
Sebastien Donadio Sebastien Donadio
Profile icon Sebastien Donadio
Sourav Ghosh Sourav Ghosh
Profile icon Sourav Ghosh
View More author details

Table of Contents (16) Chapters

Title Page
Copyright and Credits About Packt Contributors Preface Algorithmic Trading Fundamentals Deciphering the Markets with Technical Analysis Predicting the Markets with Basic Machine Learning Classical Trading Strategies Driven by Human Intuition Sophisticated Algorithmic Strategies Managing the Risk of Algorithmic Strategies Building a Trading System in Python Connecting to Trading Exchanges Creating a Backtester in Python Adapting to Market Participants and Conditions Other Books You May Enjoy

Understanding the terminology and notations

To develop ideas quickly and build an intuition regarding supply and demand, we have a simple and completely hypothetical dataset of height, weight, and race of a few random samples obtained from a survey. Let's have a look at the dataset:

Height (inches)

Weight (lbs)

Race (Asian/African/Caucasian)

72

180

Asian

66

150

Asian

70

190

African

75

210

Caucasian

64

150

Asian

77

220

African

70

200

Caucasian

65

150

African

 

Let's examine the individual fields:

  • Height in inches and weight in lbs are continuous data types because they can take on any values, such as 65, 65.123, and 65.3456667.
  • Race, on the other hand, would be an example of a categorical data type, because there are a finite number of possible values that can go in the field. In this example...
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