
Chapter 2 | 2 min read
Intro to Python for Trading
Heard of Python and thought,
“Nahi bhai, coding is not my thing!”
Don’t worry. You don’t need to become a software engineer. You just need to learn how to speak to the market in its own language — and Python is one of the easiest ways to do that.
Let’s break it down — super simple.
What is Python?
Python is a beginner-friendly programming language that’s super popular in finance and algo trading. Why? Because:
- It’s easy to read (like English)
- It has ready-made libraries for charts, data, and trading
- You can build your first strategy in under 10 lines of code
Your First Line of Code
Let’s say you want to check if the Relative Strength Index (RSI) is below 30 — a common "buy" signal.
In Python, this would look something like:
if rsi_value < 30:
print("Buy Signal")
That’s it.
- if = condition
- rsi_value = the RSI number
- < 30 = your threshold
- print("Buy Signal") = the action to take Simple, right?
What You Need to Learn (Basics Only)
Here’s a small checklist of what you need to build basic trading algos:
Variables | Like labels: price = 105 |
If-Else | “If it's raining, carry an umbrella” logic |
Functions | Reusable chunks of code |
Loops | Repeating something (e.g., check data every minute) |
Libraries | Ready-made tools (e.g., get stock data, plot charts) |
You’ll mostly use libraries like:
- pandas (for working with data)
- ta or ta-lib (for indicators like RSI, MACD)
- matplotlib (for basic charts)
- datetime (to track time and candles)
Don’t worry about installing these now — we’ll show you in baby steps.
Where Do You Write This Code?
You can write Python code in:
- Online editors like Google Colab (like Google Docs for code)
- Software like VS Code or Jupyter Notebook on your computer
You write the strategy, press "Run", and the algo starts reading data, checking rules, and giving alerts or orders.
Final Thought:
Coding is not about being “tech-savvy.” It’s about thinking logically and translating your trading ideas into clear instructions.
If you can explain your strategy in plain words, you can eventually write it in Python too. Most brokers even offer Python SDKs or wrappers to help you get started quickly—so you’re not building everything from scratch.
In the next chapter, we’ll walk through the full flow: How a coded algo connects to your broker, fetches data, checks conditions, and places trades.
Get ready to see how the full machine works!
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