From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training

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Strategies in currencies

Strategies in currencies

From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training

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Strategies in currencies

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- [Instructor] Now that we've put together an attractive dataset and cleaned it up a little bit, let's start going through and actually developing a real algorithmic trading strategy. I'm using two different files in Stata. First, we have the 04_04_Begin do-file, okay? And that's just going to build on what we've done in 04_03. In addition, I've pulled in the data from the dta file for 04_04_Begin. So this is the Stata.dta file, which is what contains our data, and then we have the do-file, which contains the actual commands and code that we type. So, now I've pulled up my do-file and my .dta, I'm ready to get started with actually going through and developing a trading strategy. So, I'm going to do a little bit of house cleaning here. I'm just going to drop the Date1 because we don't need that anymore, and now I'm ready to start actually developing a strategy. Now, one popular strategy in currencies is what's called triangular arbitrage. This essentially just looks at what's called…

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