What this lesson covers
Quiz: Fundamental Indicators
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.
What does a stock actually represent?
Just a number on a screen · A lottery ticket · A business - ownership in a company · A guaranteed return
What do fundamental indicators help us understand?
Yesterday's stock price · A company's financial health · How many people are trading · The weather forecast
What is the PE (Price-to-Earnings) ratio?
How fast the stock price changes · How expensive a stock is compared to its net income · The company's total revenue · The number of employees
Which of these are examples of fundamental indicators?
RSI, MACD, and Bollinger Bands · Revenue, net income, and free cash flow · Satellite imagery and social media sentiment · Simple moving average and exponential moving average
What makes a stock 'fundamentally strong'?
It has a high trading volume · It brings in a lot of money, grows year over year, isn't too expensive, and has low debt · It's mentioned a lot on social media · Its price went up yesterday
Why are fundamental indicators important for long-term investing?
They predict tomorrow's price · They tell us how healthy a business is and why it might move in a certain direction over time · They guarantee profits · They're the only indicators that matter
According to the SEC, what are the four main financial statements?
Revenue Report, Expense Report, Tax Filing, Audit Report · Balance Sheet, Income Statement, Cash Flow Statement, Statement of Shareholders' Equity · Annual Report, Quarterly Report, 10-K, 10-Q · Profit Report, Loss Report, Asset Report, Liability Report
What is the fundamental equation that a balance sheet is based on?
Revenue - Expenses = Profit · Assets = Liabilities + Shareholders' Equity · Cash In - Cash Out = Net Cash · Price / Earnings = PE Ratio