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Python Stock Trading: Build Your Own Trading Bot
6 min readJan 3, 2025
Want to create your own trading bot?
In this guide, you’ll learn how to build a smart trading system from scratch using Python.
We’ll create a complete portfolio manager that can fetch real stock data, make trading decisions, and test strategies before risking real money. Whether you’re a programmer curious about algorithmic trading or an investor looking to automate your strategies, this guide will show you how.
All you need is basic Python knowledge and some understanding of stock trading concepts.
Setting Up the Environment
First, let’s install the necessary packages:
```bash
pip install yfinance pandas numpy matplotlib scikit-learn
```
## 1. Data Acquisition and Preparation
We'll start by creating a function to fetch historical stock data:
```python
import yfinance as yf
import pandas as pd
import numpy as np
from datetime import datetime, timedelta
def get_stock_data(tickers, start_date, end_date):
"""
Fetch historical stock data for multiple tickers
Parameters:
tickers (list): List of stock ticker symbols
start_date (str): Start date in 'YYYY-MM-DD' format
end_date (str): End date in 'YYYY-MM-DD' format
Returns:
dict: Dictionary containing DataFrames for each ticker
"""
stock_data = {}
for ticker in tickers…