Hands-On AI Trading with Python, QuantConnect, and AWS

Hands-On AI Trading with Python, QuantConnect, and AWS book cover

Hands-On AI Trading with Python, QuantConnect, and AWS

Author(s): Jiri Pik (Author), Ernest P. Chan (Author), Jared Broad (Author), Philip Sun (Author), Vivek Singh (Author)

  • Publisher: Wiley
  • Publication Date: 18 Feb. 2025
  • Edition: 1st
  • Language: English
  • Print length: 416 pages
  • ISBN-10: 1394268432
  • ISBN-13: 9781394268436

Book Description

Master the art of AI-driven algorithmic trading strategies through hands-on examples, in-depth insights, and step-by-step guidance

Hands-On AI Trading with Python, QuantConnect, and AWS explores real-world applications of AI technologies in algorithmic trading. It provides practical examples with complete code, allowing readers to understand and expand their AI toolbelt.

Unlike other books, this one focuses on designing actual trading strategies rather than setting up backtesting infrastructure. It utilizes QuantConnect, providing access to key market data from Algoseek and others. Examples are available on the book’s GitHub repository, written in Python, and include performance tearsheets or research Jupyter notebooks.

The book starts with an overview of financial trading and QuantConnect’s platform, organized by AI technology used:

  • Examples include constructing portfolios with regression models, predicting dividend yields, and safeguarding against market volatility using machine learning packages like SKLearn and MLFinLab.
  • Use principal component analysis to reduce model features, identify pairs for trading, and run statistical arbitrage with packages like LightGBM.
  • Predict market volatility regimes and allocate funds accordingly.
  • Predict daily returns of tech stocks using classifiers.
  • Forecast Forex pairs’ future prices using Support Vector Machines and wavelets.
  • Predict trading day momentum or reversion risk using TensorFlow and temporal CNNs.
  • Apply large language models (LLMs) for stock research analysis, including prompt engineering and building RAG applications.
  • Perform sentiment analysis on real-time news feeds and train time-series forecasting models for portfolio optimization.
  • Better Hedging by Reinforcement Learning and AI: Implement reinforcement learning models for hedging options and derivatives with PyTorch.
  • AI for Risk Management and Optimization: Use corrective AI and conditional portfolio optimization techniques for risk management and capital allocation.

Written by domain experts, including Jiri Pik, Ernest Chan, Philip Sun, Vivek Singh, and Jared Broad, this book is essential for hedge fund professionals, traders, asset managers, and finance students. Integrate AI into your next algorithmic trading strategy with Hands-On AI Trading with Python, QuantConnect, and AWS.

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From the Inside Flap

Revolutionize Your Trading with Artificial Intelligence

Hands-On AI Trading with Python™, QuantConnect™, and AWS™ is a comprehensive guide that bridges the gap between cutting-edge artificial intelligence and the dynamic world of quantitative trading. The authors, Jiri Pik, Ernest P. Chan, Jared Broad, Philip Sun, and Vivek Singh, deliver a practical, data-driven roadmap to modern algorithmic trading, featuring over 20 fully implemented real-world examples to ignite your creativity and serve as a launchpad for your ideas.

This book demystifies the complexities of algorithmic trading by leveraging QuantConnect™ to backtest, optimize, and deploy trading strategies. Unlike conventional resources, this book provides fully implemented Python™ examples, empowering you to focus on innovation over infrastructure.

What’s Inside?

The book is packed with practical ways to set up data and use AI models in your trading, including Support Vector Machines for price trend forecasting, Convolutional Neural Networks (CNNs) for pattern recognition in stock prices, Markov Chains for dynamic asset allocation, Gaussian Naive Bayes for risk classification, and Reinforcement Learning for optimal trading strategies.

Technologies are illustrated with real-world examples, including mean-reversion pairs trading strategies, momentum-based equity trading strategies, volatility-based options strategies, dynamic hedging, portfolio optimization, and asset class selection using Principal Component Analysis (PCA).

Accompanied by a GitHub repository with source code and strategy results, readers can rapidly test, refine, and experiment with strategies.

Who Should Read This Book?

Whether you’re a seasoned hedge fund professional, an asset manager, or a graduate student in finance, Hands-On AI Trading with Python™, QuantConnect™, and AWS™ equips you with actionable tools to integrate AI into your trading workflows. This book is essential for anyone aiming to excel in today’s competitive financial markets.

Take control of your trading future today― get your copy and leverage AI to transform your strategies.

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