Our first algorithmic trading (buy when the price is low, and sell when the price is high)

You may now feel that you are impatient to make money, and you may also be thinking When can you start doing so?

We have talked about what we will address in this book. In this section, we will start building our first trading strategy, called buy low, sell high.

Building a trading strategy takes time and goes through numerous steps:

  1. You need an original idea. This part will use a well-known money-making strategy: we buy an asset with a price lower than the one we will use to sell it. For the purpose of illustrating this idea, we will be using Google stock.
  2. Once we get the idea, we need data to validate the idea. In Python, there are many packages that we can use, to get trading data.
  3. You will then need to use a large amount of historical data to backtest your trading strategy assuming this rule: what worked in the past will work in the future.
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