What this lesson covers
Quiz: Alternative Data Sources
Learn algorithmic trading by doing. Create SMA and RSI indicators with Aurora, define trading conditions, build a first buy strategy, run portfolio backtests, and learn how paper deployment works.
Explain how indicators, conditions, strategies, and portfolio backtests fit together
Learning outcome for this course.
Create a 10-day SMA and an RSI indicator through Aurora chat
Learning outcome for this course.
Define SMA-to-price and RSI threshold conditions for SPY
Learning outcome for this course.
Create a paper portfolio and a first AMZN buy strategy
Learning outcome for this course.
Run a buy-and-hold backtest and compare a strategy with a SPY benchmark
Learning outcome for this course.
Describe paper deployment and the checks to make before considering live trading
Learning outcome for this course.
Practice questions
Answer inside the lesson player. Correct-answer keys and explanations are not exposed in this public preview.
Besides technical and fundamental indicators, what else can be used to predict stock prices?
Nothing else exists · Only the news · An infinite number of alternative data sources · Just your gut feeling
What do economic indicators tell us?
Individual company earnings · How good the overall economy is, which affects stock prices · Tomorrow's weather · Which stocks to buy
How might satellite imagery be used as a trading indicator?
To take pictures of trading floors · To count cars in store parking lots and predict company earnings · To track individual investors · It can't be used for trading
What is sentiment data?
The mood of the stock market based on social media and online discussions · The temperature outside · A company's official earnings report · The CEO's personal opinion
Which platforms can be used to gather sentiment data?
Only official financial news sites · Reddit, Twitter, StockTwits, YouTube, TikTok, or all of them combined · Only company press releases · None - sentiment data isn't real
What does any indicator ultimately need to do?
Guarantee profits · Evaluate to a number that can help quantify where a stock's value might be · Match exactly what other traders use · Be approved by the SEC