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Python Finance - Financial Analysis Toolkit

A comprehensive collection of Jupyter notebooks for financial analysis, including portfolio management, technical analysis, and trading strategy backtesting. This toolkit provides practical implementations of modern financial analysis techniques using Python.

📁 File Descriptions

test_portfolio.ipynb

Portfolio Analysis and Management

This notebook implements an interactive Streamlit application for comprehensive investment portfolio analysis. Key features include:

  • Data Input Interface: User-friendly input for financial assets (e.g., AAPL, MSFT, GOOGL, BTC) and analysis date selection
  • Data Acquisition: Leverages yfinance API to retrieve historical adjusted closing prices
  • Return Calculations:
    • Daily portfolio returns computation
    • Cumulative returns analysis
    • Benchmark comparison against S&P 500 index
  • Risk Assessment: Portfolio volatility calculation using covariance matrix methodology
  • Data Visualization:
    • Comparative performance charts (Portfolio vs S&P 500)
    • Portfolio composition pie charts with equal weighting
  • Risk Metrics: Portfolio risk analysis compared to benchmark volatility

test_tradingview_ta.ipynb

Automated Technical Analysis with TradingView

This notebook demonstrates the integration of tradingview_ta library for automated technical analysis:

  • Analysis Configuration: Connects to TradingView API for specific symbol analysis (example: 'X' symbol on NYSE)
  • Technical Indicators: Comprehensive indicator suite including:
    • RSI (Relative Strength Index)
    • Stochastic Oscillators (Stoch.K, Stoch.D)
    • CCI (Commodity Channel Index)
    • ADX (Average Directional Index)
    • MACD (Moving Average Convergence Divergence)
    • Moving Averages (EMA, SMA across multiple timeframes)
    • Bollinger Bands
    • Pivot Points (Classic, Fibonacci, Camarilla, Woodie, Demark)
  • Trading Recommendations: Automated buy/sell recommendations based on technical analysis
  • Executive Summary: Consolidated recommendation output (BUY/SELL/NEUTRAL) with signal distribution

test_backtesting.ipynb

Trading Strategy Backtesting Framework

This notebook implements and validates trading strategies using the backtesting library:

  • Strategy Implementation: SMACross (Simple Moving Average Crossover)

    • Short-term MA: 50 periods
    • Long-term MA: 100 periods
    • Buy signal: Short MA crosses above Long MA
    • Sell signal: Long MA crosses above Short MA
  • Backtest Configuration:

    • Initial capital: $10,000
    • Commission structure: 0.2%
    • Dataset: SPY ETF from 2018-01-01
  • Performance Metrics:

    • Total and annualized returns
    • Volatility and risk-adjusted ratios (Sharpe, Sortino)
    • Maximum and average drawdown analysis
    • Trade statistics and win rate
    • Profit factor and expectancy calculations
  • Parameter Optimization: Automated optimization for optimal moving average parameters

  • Interactive Visualization: Bokeh-powered interactive charts featuring:

    • Equity curve evolution
    • Entry/exit point markers
    • Technical indicator overlays
    • Drawdown period analysis

🛠️ Technology Stack

  • Python: Core programming language
  • yfinance: Yahoo Finance API wrapper for financial data
  • pandas: Data manipulation and analysis framework
  • matplotlib: Static data visualization library
  • streamlit: Web application framework for interactive dashboards
  • tradingview_ta: TradingView technical analysis integration
  • backtesting: Vectorized backtesting framework
  • ta: Technical analysis indicator library
  • bokeh: Interactive visualization library
  • numpy: Numerical computing foundation

🚀 Getting Started

Prerequisites

pip install yfinance pandas matplotlib streamlit tradingview_ta backtesting ta bokeh numpy

Usage Instructions

  1. Jupyter Notebook Execution:

    jupyter lab
    # Navigate to desired .ipynb file and execute cells sequentially
  2. Streamlit Portfolio Analysis:

    # Convert notebook to .py file first, then:
    streamlit run portfolio_app.py
  3. Command Line Backtesting:

    # Execute backtesting notebook cells or import as module
    from test_backtesting import SMACross, run_backtest

📊 Use Cases

  • Portfolio Managers: Risk assessment and performance attribution analysis
  • Quantitative Traders: Strategy development and validation framework
  • Financial Analysts: Rapid technical analysis and market screening
  • Academic Researchers: Financial modeling and empirical analysis foundation
  • Finance Students: Practical implementation of theoretical concepts
  • Retail Investors: Personal portfolio optimization and strategy testing

🔮 Future Roadmap

Short-term Enhancements (Next 3 months)

  • Advanced Portfolio Optimization
    • Modern Portfolio Theory implementation
    • Efficient frontier calculation
    • Risk parity and factor-based allocation models
  • Enhanced Risk Management
    • Value at Risk (VaR) calculations
    • Expected Shortfall (ES) metrics
    • Monte Carlo simulation framework
  • Extended Data Sources
    • Alternative data integration (sentiment, economic indicators)
    • Cryptocurrency market data expansion
    • Real-time data streaming capabilities

Medium-term Development (3-6 months)

  • Machine Learning Integration
    • Predictive modeling for price movements
    • Feature engineering for technical indicators
    • Ensemble methods for signal generation
  • Advanced Strategy Framework
    • Multi-asset strategy support
    • Options and derivatives backtesting
    • High-frequency trading simulation
  • Web Application Development
    • Full-stack dashboard with user authentication
    • Cloud deployment (AWS/GCP/Azure)
    • Real-time portfolio monitoring

Long-term Vision (6+ months)

  • Institutional Features
    • Multi-portfolio management system
    • Compliance and regulatory reporting
    • Performance attribution analysis
  • API Development
    • RESTful API for strategy execution
    • Webhook integration for automated trading
    • Third-party platform connectivity

🔧 Possible Implementations

Technical Analysis Enhancements

  • Custom Indicator Development: Build proprietary technical indicators
  • Pattern Recognition: Automated chart pattern detection using computer vision
  • Sentiment Analysis: Social media and news sentiment integration
  • Market Regime Detection: Statistical methods for market state identification

Portfolio Management Extensions

  • Factor Models: Fama-French multi-factor model implementation
  • ESG Integration: Environmental, Social, Governance scoring
  • Alternative Assets: Real estate, commodities, and private equity analysis
  • Currency Hedging: Multi-currency portfolio risk management

Risk Management Modules

  • Stress Testing: Historical and hypothetical scenario analysis
  • Correlation Analysis: Dynamic correlation monitoring and alerts
  • Liquidity Risk: Market impact and liquidity-adjusted returns
  • Credit Risk: Counterparty risk assessment for fixed income

Automation and Integration

  • Broker API Integration: Automated order execution (Interactive Brokers, Alpaca)
  • Cloud Infrastructure: Scalable computing for large-scale backtesting
  • Notification Systems: Email/SMS alerts for strategy signals
  • Database Integration: PostgreSQL/MongoDB for historical data storage

📈 Performance Considerations

  • Vectorized Operations: Optimized pandas operations for large datasets
  • Memory Management: Efficient data handling for extended historical periods
  • Parallel Processing: Multi-core utilization for parameter optimization
  • Caching Strategies: Redis integration for frequently accessed data

🤝 Contributing

We welcome contributions! Please see our contributing guidelines for:

  • Code style and formatting standards
  • Testing requirements and coverage expectations
  • Documentation standards and examples
  • Pull request and issue templates

📄 License

This project is provided as-is for educational and research purposes. Some code components may be derived from various open-source projects and tutorials. Please ensure compliance with original source licenses when using or redistributing any part of this code.

⚠️ Disclaimer

IMPORTANT NOTICE:

  • This software is strictly for educational and research purposes only
  • The code may contain reused and adapted components from various sources and tutorials
  • Past performance does not guarantee future results in any financial market
  • This toolkit is not intended for live trading or actual investment decisions
  • No financial advice is provided - this is purely educational material
  • Users are solely responsible for any use of this code and its outcomes
  • Always consult with qualified financial professionals before making investment decisions
  • The authors assume no liability for any financial losses incurred through use of this software
  • Code is provided without warranty of any kind, express or implied
  • Users should verify all calculations and logic before any practical application

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