How to Get Started with Algorithmic Trading Using Python


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Are you interested in learning about algorithmic trading using Python? For novice traders and those entering the finance industry with a career, a solid knowledge of algo trading and market technology can greatly benefit you.

In this guide, we’ll break down the basics of algorithmic trading and how to get started. We’ll also talk a bit about our algo trading courses and how Lumiwealth can help you learn how to code and engage in algorithmic trading quickly.


How to Get Started with Algorithmic Trading

What is Lumiwealth?


Lumiwealth is an algorithmic trading platform and instruction provider. We understand how important it is to be able to invest using technology, as the world of trading is constantly evolving. We offer a wide range of courses on algorithmic trading that are lead by experienced instructors.

Our goal is to help traders and investors take control of their personal financial health. If you want to become an expert in the finance field, we believe that a solid knowledge of algorithmic trading can make the biggest difference.

We’re proud to offer an algorithmic trading course, a machine learning for trading course, and many other workshops dedicated to the art of trading with algorithms and code. Stick around until the end of this guide to learn more about the courses we offer.

Now, let’s get into what exactly algorithmic trading actually is.


The Basics of Algorithmic Trading


Algorithmic trading is an investment methodology that uses data science as well as automated executions to build instructions for trading. Algo trading is different from traditional trading techniques because it takes out the need for human predictions and the risk of error that comes along with it. With algorithmic trading, one can use techniques based on data science to successfully trade, such as financial fundamentals and economic data collection.

Trading can be a very emotional process. In fact, you’ve likely heard of courses dedicated to helping day traders get a grip on their emotions to keep them from making impulsive mistakes. With algorithmic trading, there’s no need for the human side of trading– you can essentially sit back and let the code do the work for you. With algorithmic trading, we’re using software to analyze data and make trades in an automated way.


algorithmic trading flow chart


So why algorithmic trading? Why do we care? Why does it matter? 

It’s worth noting that algorithmic trading doesn’t have to be the “right” way to trade. At Lumiwealth, our goal is to help data-focused people use their skills to automate their trading practices. Algo trading is great, but it might not be the right way for you to make money. In our opinion, anyone who tries to convince you that there’s only one way to trade is simply wrong.


What we’re all about is the data. That’s the core of algorithmic trading– we’re downloading data, back-testing it, and trying new strategies. Data analysis is the backbone of excellent trading strategies because it uses proof and data science to provide insight into good trading choices. Algo trading is about building new ways to analyze and understand the right trading practices.


algo trading market volume

To really understand algorithmic trading, some coding knowledge is important. It’s a common misconception that algo trading is all about trading hundreds of times a day and that it is no different than trading in the traditional sense. In fact, you’ve probably already used algo trading without knowing it – many