- [Instructor] Before we get into…actually developing algorithms,…it's important that you understand…the basics of how we construct an algorithm in Excel.…Now what you'll observe here in this sheet…is that I've pulled in some basic data on pricing,…and you're going to get very familiar with data later on.…In fact what you see here…is we've got four different columns,…each related to a particular day.…Those dates span from January 2nd, 1992,…through February 23rd, 2017.…
We have four columns that are of interest:…the Open, the High, the Low, and the Adjusted Close.…The Open is the price that a stock opens at…on any given day.…In this case we're looking at pricing…related to the VIX, which is what we refer to…as the market's fear gauge.…That's a popular product of trade.…That's one that we'll be talking about later on.…Column C is for the High.…This is for the high price that the stock trades at…on any particular day.…Column D is the Low.…
That's the low price that a stock trades at…on a particular day.…There's two types of trading that's done.…
Author
Michael McDonald
Released
3/14/2018Professor Michael McDonald provides a brief primer on securities markets. He explains how data helps investors forecast performance and automate trading. Then he moves into the practical steps: coming up with algorithmic trading rules and developing and testing an algorithm. Finally, he shows how the algorithm can be applied and eventually expanded to other securities. Anyone working in financial services, or interested in investing in the stock market, will be able to use these tutorials to understand and develop simple trading algorithms of their own.
- Define what a share of stock is.
- Classify the type of trading that attempts to capitalize on the bid-ask spread.
- Name the rule that can be used as a metric for Fed interference in the market.
- State the first step in a data analysis project.
- Identify the type of characteristic algorithmic trading relies on.
- Break down how VAR is used to manage risk.
Skill Level Intermediate
Duration
Views
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Introduction
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Welcome45s
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1. The Basics of Securities Markets
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Basics of stocks4m 10s
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Basics of stock markets3m 40s
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Basics of trading stocks4m 54s
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Algorithms in Excel2m 52s
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Stocks and the Fed2m 50s
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Big data in finance2m 19s
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2. Investing and Securities
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3. Building Algorithms
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Gather data for an algorithm3m 53s
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Design an algorithm3m 49s
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Test algorithm accuracy4m 54s
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Predict economic variables4m 34s
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Advanced algorithms3m 46s
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4. Using Trading Algorithms
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Conclusion
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Next steps51s
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Video: Algorithms in Excel