Advanced Trading Algorithms

Indian School of Business via Coursera

Go to Course: https://www.coursera.org/learn/advanced-trading-algorithms

Introduction

### Course Review: Advanced Trading Algorithms on Coursera In the ever-evolving world of finance and investing, proficiency in trading algorithms is not just an advantage—it's a necessity. Coursera's course, **Advanced Trading Algorithms**, stands out as a comprehensive program designed to equip learners with in-depth knowledge of robust trading strategies backed by empirical data and sound testing methods. Whether you're a seasoned trader looking to enhance your skills or a novice eager to dive into algorithmic trading, this course offers valuable insights and practical applications. #### Course Overview The **Advanced Trading Algorithms** course provides a compelling look into the science of trading strategies with a focus on both developed and emerging markets. It pledges to educate learners on creating and validating trading strategies while steering clear of common pitfalls like look-ahead bias and survival bias in back testing. Through a methodical approach, you will learn how to establish a sound methodology for robust strategy testing and validation. #### Syllabus Breakdown This course is structured around several core trading strategies: 1. **Strategy - Accruals** - **Content:** Gain an understanding of accruals and their significance in trading. You will learn to construct a trading strategy based on accrual metrics and rigorously test your resulting strategy. - **Outcome:** Mastery of the basics of accruals and practical strategy implementation on real-world data will be achieved. 2. **Strategy - Betting Against Beta** - **Content:** This module focuses on the foundational concepts of beta. Learners will craft a trading strategy that challenges conventional views of risk and returns, then rigorously assess its effectiveness. - **Outcome:** Develop a robust understanding of beta and its applications in designing trading strategies that can yield inconsistent returns. 3. **Strategy - Momentum & Momentum Crashes** - **Content:** Explore the dynamics of momentum investing and the theory behind momentum crashes. This module instructs you in constructing strategies that capitalize on momentum trends and mitigate risks during crashes. - **Outcome:** You will build strategic momentum-based portfolios and analyze their performance during various market conditions. 4. **Strategy - G Score** - **Content:** Learners delve into the G Score methodology and its implications for trading strategies. You'll build and back test strategies that leverage the G Score to enhance decision-making. - **Outcome:** Aptitude in using G Score as a critical measurement tool to boost portfolio performance through confirmed empirical analysis. #### Strengths of the Course - **Empirical Focus:** One of the standout features of this course is its emphasis on empirical testing. The instructors instill a discipline of using scientifically-backed methods for strategy validation, significantly improving the credibility of user-generated strategies. - **Practical Application:** Each module is designed not only to impart theory but also to ensure that learners can apply concepts in tangible market contexts, preparing them to use these strategies effectively. - **Accessible Expertise:** The course caters to a diverse audience and breaks down complex topics into digestible formats. Whether you’re coming from a quantitative finance background or a general trading interest, the material is presented in a way that is easy to understand. #### Recommendations I highly recommend the **Advanced Trading Algorithms** course to anyone passionate about deepening their algorithmic trading knowledge. Its structured approach, combined with a solid foundation in back testing methodologies, makes it a priceless resource for traders aiming to refine their skills. Investing in this course will not only enhance your strategic thinking but also equip you with the necessary tools to navigate the complexities of modern financial markets effectively. Whether you're aiming for personal investment growth or looking to bolster your professional expertise, this course is an excellent choice to consider on your learning journey. **Enroll today and take the next step towards mastering advanced trading algorithms!**

Syllabus

Strategy - Accruals

After completing this module you will be able to understand the basics of accrual, build a trading strategy based on accruals and test the strategy that you have built.

Strategy - Betting against Beta

After completing this module you will be able to understand the basics of beat, build a trading strategy based on beta and test the strategy that you have built.

Strategy - Momentum & Momentum Crashes

After completing this module you will be able to understand the basics of momentum, build a trading strategy based on momentum & momentum crashes, and test the strategies that you have built.

Strategy - G Score

After completing this module you will be able to understand the meaning of G Score, build a trading strategy based on G Score and test the strategy that you have built.

Overview

This course will provide back test results for all the strategies in developed and emerging markets. The learner will also be taught scientific ways of back testing without succumbing to either look ahead (or) survival bias. You will learn various methods of building a robust back testing system for the strategies discussed in the previous course. You will be taught how to differentiate between mere data mining and results based on solid empirical or theoretical foundation. Next, you will learn

Skills

Reviews

Intuitive teaching by Prasanna Sir and Sai Harsha Sir

Good Course that even beginners can start with ( With a bit of reference to last course.\n\nInstructors are clear in their teaching style.

Sir is very knowledgeable. I would love to meet him in person and work under him.

Excelente curso. Aprendí muchísimos contenidos , especialmente relacionados a análisis fundamental, y cómo implementarlo en el trading. Muy interesante, y los profesores sumamente didácticos.

The practical example for G-score calculation can be in more detail to help the beginners like me.