One of the hot trends among young people nowadays is online trading. Adding fever to this trend, many online brokers like Robinhood, E*Trade, etc., offer $0 commission trading services. Even some market observers say that the recent All-Time-High stock market is due to those active individual investors. One of the popular stock trading strategies is studying the moving average of the stock prices.
In this part of the final exam, you will do online research on the trading strategy using the moving averages. Various trading strategies are using moving averages. Study articles and watch Youtube videos to understand the strategy. (i.e., Investopedia, Youtube, Yahoo Finance, etc.).
After studying the strategy, pick one stock or cryptocurrency that you are interested in investing in, and write a two-page research paper that presents your trading strategy using the moving averages
In this part, you will implement the trading strategy you chose in Part I using the Python program. We discuss this in detail in Lesson 14 that you can use NumPy and pandas to analyze a stock. If you haven’t studied the lesson, watch the last lesson video again to learn about reading the historical stock prices and plot stock price and moving average(s) on the chart.
In specific, your program must include the following components for credit:
Data Frame of the stock prices of your choice;
Implementation of Moving Average trading strategy;
The outputs that tell when to buy and sell stocks;
A pyplot showing the charts as we did in Lesson 14.
Remember that your program must implement what you presented in Part I.