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This project effectively combines several key techniques in algorithmic trading:

  1. Data Collection: Utilizes yfinance for fetching historical stock prices.
  2. Data Manipulation: Implements custom calculations for technical indicators like RSI.
  3. Trading Logic: Defines clear rules for executing trades based on market conditions.
  4. Portfolio Management: Tracks capital changes throughout the trading process.
  5. Data Visualization: Provides insights into trading performance through graphical representation.

image

Trading Logic The program employs a set of trading rules based on RSI thresholds to determine when to buy, sell, short, or cover positions: Trading Conditions:

  1. Buy Condition: If the RSI falls below 35, a buy order is executed.
  2. Sell Condition: If the RSI rises above 55 while holding a position, shares are sold.
  3. Short Condition: If the RSI exceeds 75 and no position is held, a short position is initiated.
  4. Cover Condition: If the RSI drops below 55 while holding a short position, it is covered.

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Using RSI indicator to trade SPY

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