In order to implement an algorithmic trading strategy though, you have to first narrow down a list of stocks that you want to analyze. This walk-through provides an automated process (using python and logistic regression) for determining the best stocks to algo-trade.
I will dive deeper into the logic and code below, but here is a high-level overview of the process:
- Import the historical data of every stock using yahoo finance.
- Pull in over 32 technical indicators for each stock using the technical analysis library.
- Perform a logistic regression on each stock using 5, 30, and 60 day observation time periods.
- Interpret the results.