Algorithmic Trading with Stochastic Oscillator in Python
Learn to implement and backtest one of the most popular trading indicators with Python
There are a bunch of technical indicators that can be considered for research and analysis but the one we are going to discuss today is one of the most popular indicators used among traders for trading purposes. It’s none other than the Stochastic Oscillator technical indicator. In this article, we will use python to create a Stochastic Oscillator-based trading strategy and backtest the strategy to see how well it performs in the real-world market. Additionally, we will also compare our trading results to the SPY ETF (an ETF specifically designed to track the S&P 500 market index) as a method to validate our strategy. Without further ado, let’s jump into the article.
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Stochastic Oscillator
Stochastic Oscillator is a momentum-based leading indicator that is widely used to identify…