Polymorphism & Abstraction in Python for Algorithmic Trading 13/100 Days

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Day 13 - Understand the power of Polymorphism and Abstraction in Python

Today we will understand two of the most important concepts of Object Oriented Programming (OOP) – Polymorphism and Abstraction. Both of these principles make algorithmic trading software more powerful and flexible. Especially when you are working on crypto trading strategies in USA or quantitative analysis for trading in Singapore, these concepts can take your skills to new heights.

Polymorphism & Abstraction

Polymorphism – One Function, Many Ways

Polymorphism means “one function that works in many ways.” Polymorphism in Python can be divided into three parts:

Method Overriding – Customizing the Parent Method
When a child class redefines the method of the parent class in its own way, it is called method overriding.

class Strategy:

def execute(self):

print(“Parent Strategy”)

class EMAStrategy(Strategy):

def execute(self):

print(“Child EMA Strategy”)

Now if we create an object of EMAStrategy and call execute(), then the method of the child class will run. This is Method Overriding.

Method Overloading – One Method, Multiple Behaviors

Python does not support method overloading directly like Java. But Python has handled it in a smart way – through default arguments and variable-length arguments.

class Maths:

def area(self, a1, a2=0):

if a2 == 0:

return 3.14 * a1 * a1 # Circle

else:

return a1 * a2 # Rectangle

If only one argument is given then it will return the area of ​​a Circle.

If two arguments are given then it will return the area of ​​a Rectangle.

This is the smart approach of Method Overloading in Python.

Operator Overloading – Redefine Operators as per your requirement
In Python, you can redefine operators like +, -, * as per your requirement. This is called Operator Overloading.

a = “Hello”
b = “World”
print(a + b) # Output: HelloWorld

Here the + operator is concatenating the string. If the same operator is used on numbers, it will perform addition.
This flexibility is called Operator Overloading.

Watch this Day 13 video tutorial

Day 13: Polymorphism & Abstraction | OOP Part – 5

1. In an algorithmic trading system, how can a `Portfolio` class relate to a `Stock` class to represent the ownership of multiple stocks?

2. Which of the following best describes aggregation in a class diagram for an algorithmic trading system?

3. In an inheritance hierarchy for an algorithmic trading system, which of the following is most likely to be a base class?

4. Which constructor correctly initializes a `Stock` object with a symbol and price in an algorithmic trading system?

5. In an algorithmic trading system, why would you override a method in a subclass?

6. How do you call a parent class method in Python from a subclass method using the `super` keyword?

7. In an algorithmic trading system, how do you initialize a base class `Stock` from its subclass `EquityStock` using the `super` keyword?

8. In an algorithmic trading system, which of the following is an example of hierarchical inheritance?

9. What type of inheritance is demonstrated when `BondStock` inherits from `Stock` and `ConvertibleBond` inherits from `BondStock`?

10. In an algorithmic trading system, what is hybrid inheritance?

11. In Python, how can the diamond problem be avoided when using multiple inheritance in an algorithmic trading system?

12. How does polymorphism benefit an algorithmic trading system?

13. Which of the following is true about method overriding in Python?

14. Can you overload methods in Python like in Java?

15. How can you overload the addition operator for a `Stock` class in Python?

16. What is the main purpose of abstraction in an algorithmic trading system?

17. In a banking system, which class would likely be at the top of the hierarchy?

18. What is an abstract class in Python?

19. Which type of inheritance is demonstrated if `Trader` inherits from `Person`, and `AlgoTrader` inherits from `Trader`?

20. What is the diamond problem in multiple inheritance?






 

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