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How to Backtest Technical Indicators in Python - AVWAP vs. ASMA

Dec 11, 2024
Do you want to learn how to backtest technical indicators in Python? Do you want to find out which indicators are more effective for your trading strategy? If yes, then this video is for you. πŸ‘ Subscribe for more: https://bit.ly/3lLybeP πŸ”— Follow along: https://analyzingalpha.com/avwap In this video, I will show you how to use Pandas, a popular Python library for data manipulation and analysis, to run a backtest of any indicator in your Python environment. You will learn how to import data, apply indicators, and evaluate the results of the backtest. I will also compare two pairs of indicators: AVWAP vs. ASMA and VWAP vs. SMA. AVWAP stands for Anchored Volume Weighted Average Price, and ASMA stands for Adaptive Smoothed Moving Average. VWAP stands for Volume Weighted Average Price, and SMA stands for Simple Moving Average. I will demonstrate that AVWAP is not anything special and that it is similar to ASMA in terms of performance. I will also show that VWAP and SMA have different characteristics and that they can be used for different purposes. By the end of this video, you will have a better understanding of how to backtest technical indicators in Python, and how to choose the best indicators for your trading style. If you find this video helpful, please like, share, and subscribe to my channel. Also, don’t forget to hit the bell icon to get notified of my new videos. Thank you for watching, and happy trading! ⏱️ Video Chapters 0:00 Intro 1:24 Get Imports 3:13 Scrape S&P 500 Data 6:44 Get Daily Prices 7:48 Create VWAP & Anchor 16:09 Analyze VWAP vs. SMA Returns 20:05 Plot the Returns 23:37 Calculate VWAP Alpha 28:15 Analyze AVWAP vs. ASMA Returns 31:27 Plot Volume Spikes 34:42 Calculate AVWAP Alpha 36:51 Outro 🏷️ Tags #backtesting #avwap #vwap #trading --- Videos are intended strictly for information, education, and entertainment purposes. Do not base any investment decisions based upon these materials. Please read the disclaimer: https://analyzingalpha.com/disclaimer ---

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