Website Source: blog / realbt
Summary
Pending synthesis from local website source.
Original source title: REALBT - A Simple Back-testing Engine in Pure Python
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Note: REALBT is my 101st project, and something I wanted to do from a long time. It is not very polished, and there are scopes of improvement. Contributions and suggestions are always welcome.
REALBT - A Simple Back-testing Engine in Pure Python
Repo: [yash-srivastava19/realbt](https://github.com/yash-srivastava19/REALBT)
Finance huh, are you THAT guy?
I never thought I will work in finance, because I've always learned AI. Finance as a field has always fascinated me, because it was really mathematics heavy, and I really liked the stochastic + logical nature of it. Since my last two two roles were in fintech, I thought it is high time I learn more about finance, and what better way to learn than make something that can be used by the community, and hence REALBT was developed to deeper my understanding of finance fundamentals. REALBT is a back-testing engine written purely in python, and offers several advantages over existing back-testing engines.
What exactly is Back-Testing?
*"The idea that the future is predictable is a very foolish idea."*
As mentioned, finance is both stochastic and logical, and if you want to make a fortune, you need to play your cards well. Now, life would've been easier(but chaotic) if there were a mathematical model that just churns out correct stock prices everytime, but reality is far from it. Markets are very unpredictable, and placing your bets on stocks is pretty much comparable to gambling, but that is not always true if you have the right tools in your arsenal - and that's exactly what a back-testing engine does. An analogy to better understand what exactly back-testing engine does is this:
*Imagine before buying a real car(a big investment), you buy a toy car to know whether your investment is worth it or not. A back-test is basically testing your toy car on a pretend road to see how well it drives. Now, a good condition test for the toy car would be when the pretend road is like a real road - with bumps, traffic, gas stations etc. In this way, when your toy car does well on the pretend road, you can be sure that the real car will also do well.*
Integration Notes
- Source section:
blog - Local source:
/home/yashs/Desktop/Programming/yash_blog/yash-srivastava19.github.io/blog/realbt.md - Raw copy:
raw/website/yash-srivastava19-github-io/blog/realbt.md