Is Python Good For Algo Trading?

Is Python Good For Algo Trading?

Python is my favorite programming language since it was the first programming language I discovered. Its user-friendly syntax became one of the factors that made me interested in programming. And I use it for the majority of my projects. There are three key reasons why I believe Python is the ideal programming language for algorithmic trading. 

First of all, Python is considered beginner friendly, as it is a programming language that promotes readability and comprehension. It is one of the most approachable programming languages because its syntax is uncomplicated. And streamlined, placing greater focus on natural language. According to BrainStation’s article “How does it take to learn python”, one of Python’s basic ideas when it was founded in 1989 by Guido van Rossum was ease of use. Due to its simplicity of use, Python code may be produced and executed significantly more quickly than other programming languages. 

In addition, Python offers both sociability and parallelization to its users.

To be more  specific, Python allows algorithm traders to share functionality across different programs. Essentially, Python enables traders to quickly link diverse systems to data sources and databases, evaluate the data, and output the results to users and trading apps. It is significantly simple to fix new modules and expand them. Traders are able to exchange existing modules by breaking them into separate parts that can be applied to a variety of contexts, besides, Python is probably employed by the algorithmic trading platforms and tools that the bulk of individuals are familiar with. Python now supports the application programming interfaces (APIs) of several trading platforms. Then, we will be able to use  Python’s charting tools and scientific computation programs to analyze the presented data. 

Moreover, even though Python runs slower than C and C++. It is frequently employed in  algorithm trading since it is a high-level programming language. If an algorithm trading  system employs highly complex models, such as machine learning and deep learning models, including Neural Networks, boosted models, decision trees, etc., Python’s wide availability of  enormous libraries can be employed immediately. For instance, Pandas is best for manipulating tabular data in data frames. Tensorflow is a high-level neural network library. And scikit-learn may be utilized for data mining and machine learning, in addition, Python’s inherent libraries also reduce the number of lines of code required when it is used for trading. Quant traders are able to avoid performing a huge number of tasks required by other programming languages.  

Written by Yijia Gao

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Reference How long does it take to learn python? (2022 guide). BrainStation®. (n.d.). Retrieved July 13, 2022, from https://brainstation.io/career-guides/how-long-does-it-take-to-learn python#:~:text=Python%20can%20be%20considered%20beginner,into%20the%20wor ld%20of%20development.

Is Python Good For Algo Trading?