01. Project Overview

Project Introduction

The S&P 500 (Standard & Poor's 500) is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the United States. It is widely regarded as one of the best representations of the U.S. stock market and economy. Over the long term, the S&P 500 has shown consistent growth, making it a key focus for long-term investors. However, it can also experience significant volatility in the short term.

In this project, we will make our first attempt to build a momentum-based strategy to trade the S&P 500 index. At the end of the project, you will have built a program that you can later expand and customise to suit your needs. We will use the python packages numpy, scipy and sqlite3, among others, in this project.

Tips: Review the code snippets that we went through during the course. Reorganize them and you are half-way done! Try experimenting with different configurations of the confidence interval, the lookback window and the forecast horizon. Be brave and experiment with different ways of deciding the position size. You may be surprised by your talent!