Stock Market Trading:
Write a python assignment which:
1. Load the daily stock prices for Apple Corporation (stock ticker AAPL) data from yahoo finance, from Jan 2nd, 2020 through Dec 31st, 2020. note: you will not include Jan 1st, 2020 since it’s a holiday (New Year's day)
2. Run a mean reversion trading strategy on the data.
3. Output the results of the strategy including the profits
Solution:
# open input file
file = open("./AAPL.txt")
# stores prices for last 5 days
last_five_days = []
# keeps track of first buy price
first_buy = None
# current buy price and total profit
buy = None
total_profit = 0
average = 0
# read file line by line
for line in file.readlines():
# read price and convert to float
price = float(line)
price = round(price, 2) # to round the price to 2 decimals print(price)
# if price is less than 95% of 5 day average and we have not already bought the share
if price < average * 0.95 and buy is None:
print("buy at: " + str(price))
buy = price # buy it
if first_buy is None: # if its first buy set it
first_buy = price
elif price > average * 1.05 and buy is not None: # if price is greater than 105% of 5 day average, sell the share
print("sell at: " + str(price))
# calculate profit
profit = round(price - buy, 2)
print("trade profit: " + str(profit))
# add to total profit and set buy to None
total_profit += profit
buy = None
# if we have data for last 5 days, remove the oldest data and add new price to end of list
if len(last_five_days) == 5:
last_five_days.pop(0)
last_five_days.append(price)
else: # add data to end of list till we have data for 5 days
last_five_days.append(price)
# calculate average of last 5 days in loop
average = round(sum(last_five_days)/5, 2)
# print out the total profit and percentage return
print("---------------------------------------")
print("Total profit:", round(total_profit, 2))
print("First buy:", first_buy)
final_profit_percentage = round(( total_profit / first_buy ) * 100, 2)
print("Percentage return:", final_profit_percentage, "%")