Nowadays Python is many traders’ favourite programming language. Many traders use Python for trading as it is easy to learn and write codes. Data scraping and even starting Algo trading are quite easy with Python. In this post, I shall discuss how to prepare your system to start using this language. Let me discuss the basic step here – the setup and installation.
How to Install Python for Trading?
Go to the official website of Python and click on the link that says “Downloads”. Though we use a lower version of the language for our use, you can install the latest version. The yellow button here says “Download Python 3.10.4.” Click it to get it.
Python will start to download to your computer now, so you can use it. This screen should show up when you run this program, so you can see what it does.
Check the box that says “Add Python 3.10 to PATH.” Then, click “Install Now.” Python will then start the process of installing on your computer. Python should now be fully installed on your computer, so you can use it. Close this window.
Putting PyCharm on Windows
Until now, Python has been installed on your computer. We do not write codes here, rather we use a Python IDE. Now, we will need to install coding software on your computer. For the codes that we write, we will be using a program called PyCharm.
Go to: https://www.jetbrains.com/pycharm/download. This will show you the most recent version of PyCharm. Download the free, open-source version of PyCharm under the community.
When you’re done, click “next” and go with PyCharm’s settings. Then, PyCharm should start to set up itself.
By running the program, we will now check to see if PyCharm can do what it says it can. Here the window will ask you to read JetBrains’ Privacy Policy when you start. Once you’ve read it, make sure that you have accepted the Agreement.
You can now choose a different colour for your code editing program. Most of the time, black is easier on the eyes, but you also can change this at a later time. Click your choice, then click “Skip The Rest and Set Defaults.”
You should now see a screen like this. Then, let PyCharm do all the work. Then, PyCharm will set itself up inside itself.
Putting a Simple Library in Python for Trading
Following what was shown in how to install PyCharm, it can be very simple to add new packages.
Go to File, New File, and then name the file you want to make anything. Here I have created a file named Test.py. Now, type “import smartapi” into the file and hover over it with your mouse to see what it looks like.
Click on the package and just install it.
For you, it will say “Install package smartapi” Click here, and you did it, you have installed a Python Library called smartapi from Angel Broking.
FAQ
Yes, Python is an excellent choice for algorithmic and automated trading. It has access to a wide array of libraries that can help traders create complex strategies easily. Moreover, it is fast and reliable enough to handle large datasets and backtesting scenarios quickly.
Profitability depends on individual trading strategies as well as market conditions. However, the advantage of using Python for trading lies in the ability to automate tasks and optimize your strategies efficiently with fewer resources than manual methods which can result in higher returns from investments when done correctly.
Both languages have their advantages when used for algo trading. Python provides simpler syntax which makes it easier to develop algorithms because its code patterns are more user friendly compared to C++ where one needs specialized knowledge in order to interact with specific data types without risking errors during implementation. However, since C++ compiles at a much faster rate it remains a top choice, especially during time-sensitive scenarios such as high-frequency trade executions where milliseconds matter significantly over long-term goals like portfolio optimization or information retrieval analysis.
We recommend starting off with learning either JavaScript (for front-end web development) or Python (for general-purpose scripting). These two languages offer strong support within the finance industry due to their ease of use combined with interoperability across multiple platforms making them attractive options not only amongst experienced coders but also newcomers alike who are eager to begin creating stock automation bots, apps, analytics bacs etc.
Conclusion
In this post, we have understood how to install Python for trading and also how to install Pycharm. We have also installed a simple Python Library. In our next posts, we will see how to fetch trading data with this programming language and also how to start algo trading.