From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training
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Choosing tactics: Trading or investing
From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training
Choosing tactics: Trading or investing
- [Instructor] There are two approaches to algo trading or really any trading, short-term trading and long-term trading. And the strategies that you're going to follow in each are different. Let's talk about this a little bit. So I've pulled up Stata here and I've got a program that I wrote, and basically what we're looking at is just some data that I've pulled in from CRISP and CompStat into Stata. And you see that here, right? So we've got hundreds of different firms, actually literally thousands going back to the 1960s. You know, and you can see this is, we've got daily data here related to all of these different companies. And you see, essentially what we're doing is having merged together our securities data on prices with accounting data, we can now go through and start looking for patterns or opportunities to trade based on that. So for example, maybe we're interested in trying to trade from a long-term perspective. And so what I've done here is go through and create what are…
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