Amibroker risk adjusted return5/28/2023 Data cleaning refers to the procedure of fixing/correcting incorrect or corrupted data values. ![]() Hence, utmost care must be taken while collecting the data & cleaning it. ![]() Flawed or incorrect data values will give nonsense outputs or “garbage”. At heart, the acronym tends to point that the quality of output is determined by the quality of input. There is a popular saying in the computing world- Garbage In Garbage Out (GIGO). Data vendors may come in handy at this juncture. This data can be anything ranging from Technical indicators like RSI, MACD range, Bollinger Bands, Fibonacci levels, Pivot levels, Volume, Stock price, or Fundamental metrics such as ROE, ROCE, P/E Ratio, OPM, etc. One must lay a strong foundation before aiming for the sky.Ģ) Data collection - A prerequisite of an effective strategy is data collection. Remember, Algorithmic Trading is a specialization. Such knowledge cannot be imparted through books & can only be gained over a while. ![]() Practical experience will give you a proper idea about the behaviour of different market instruments and their correspondent price behaviour. Newbies must practice discretionary trading/paper trading during this period to sharpen their skills. Let us know how to get started with it.ġ) Getting the basics right- It is not advisable to get into algorithmic trading without a minimum experience of two-three years in the capital markets. Now that we understand algo trading and its advantages & disadvantages.
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