The Best Python Trading Algorithm Libraries In 2022

The Best Python Trading Algorithm Libraries In 2022

• Today I'll be discussing the best Python Algorithmic Trading Libraries in 2022. Many traders are turning to trade robots, which use software to help them trade quickly and efficiently. The problem is, there are a lot of different libraries out there that can be overwhelming. That's why I created this list of the top Python algorithmic trading libraries — so you don't have to waste time scrolling through reviews to figure out what's good.

1. TA-Lib
2. PyAlgoTrade
3. Zipline
4. Pybacktest
5. Quant Rocket

TA-Lib

• TA-Lib is a Python-based free and open-source technical analysis library that offers a variety of statistical indicators and charting tools.
• Traders, investors, and analysts utilize the library to detect trends, make choices, and execute trades. Moving averages, oscillators, momentum indicators, and volumetric indicators are among the technical analysis indicators covered by TA-Lib.
• The library also has various charting tools, including candlestick charts, bar charts, and line charts.

TA-Lib includes the following features:

• There will be over 100 technical indications.
• Recognizing candlestick patterns
• Open-source API for usage in C, C++, Java, Perl, Python, and R programming languages — Windows, Linux, and macOS are all supported.
• Capability to manage data on an intraday, daily, weekly, and monthly basis

PyAlgoTrade

• PyAlgoTrade is a Python library for algorithmic trading. It enables developers to create trading strategies using a straightforward, expressive syntax.
• A variety of tools for strategy formulation and testing are included in the library, including an event-driven back-testing engine, a paper trading simulator, and data visualization tools.
• The library is designed to be used with various data sources, including CSV files, SQL databases, and live tick data from various exchanges.
• PyAlgoTrade may be less effective for those who are unfamiliar with Python programming.

Zipline

• Zipline is a Python library for algorithmic trading that is free and open source. It is an event-driven system capable of backtesting as well as live trading. Zipline has a straightforward paper trading simulator.
• Zipline is built on Pandas, a Python data analysis toolkit. Zipline is also compatible with Python's numerical and scientific libraries, including NumPy and SciPy.

Pybacktest

• Pybacktest is a Python package that allows you to test trading strategies. It enables users to compare a plan to historical data to evaluate how it might have performed. Pybacktest also has tools for examining and optimizing trading strategies.
• When utilizing Pybacktest, there are various advantages and disadvantages to consider. On the plus side, Pybacktest is a robust and adaptable tool for testing a wide range of trading strategies. It is very simple to use and can be rapidly installed and configured.
• On the downside, Pybacktest is not as commonly used as some other backtesting programmes and may not be as well supported. Furthermore, Pybacktest can be sluggish to conduct massive back-tests and may not be able to handle very large data sets.

Quant Rocket

• QuantRocket is a Python-based open-source platform that allows users to study, back-test, and execute automated quantitative trading algorithms. Through its Interactive Brokers (IB) platform, it provides live and paper trading, as well as data collecting tools, numerous data sources, a research environment, several back-testers, and other services. It also includes features for scheduling, alerting, and maintenance, allowing you to entirely automate your plans.
• QuantRocket is installed using Docker and may be done on-premises or in the cloud.

Pros:

• Integrated live trading platform with data feeds, scheduling, and monitoring integrated in.
• International markets and intraday trading are supported.

Cons:

• There is no paper trading or live trading without a membership cost.
• Backtesting research is less adaptable than some other choices.

Conclusion

• Python is a popular language for algorithmic trading because of its versatility, robustness, and readability. The Python modules discussed in this blog make constructing your own trading strategy considerably easier.