Algorithmic trading is revolutionizing financial markets, enabling traders to execute strategies with speed and precision. Whether you’re a quantitative trader looking to optimize your portfolio or seeking the best algorithmic trading software in the USA, mastering tools like Python and Freqtrade is essential. In this video, we explore crypto trading strategies, quantitative analysis for trading in Singapore, and how to build a profitable Freqtrade strategy. Stay tuned to enhance your algorithmic trading skills with real-world insights.
We can say a decorator is a function that receives another function and it adds some decoration right and then it returns against the new function because in algo trading we need to know that which functions is taking how much time to execute because that decides the profitability because in SF the game is all about the timing so we have to make sure that our program is taking less time so you can think that only the global Nam space remains there otherwise only local name spaces the function calls vanished as soon as the function execution finisher right so this is how it works welcome back to the day 19 of the 100 days of H with python algo trading this will be the last topic of the core Python and after that we’ll start with absolutely interesting stuffs like python libraries and much more and today we’ll be covering python decorators which is little bit tough and complex but I’ll try my best to make you understand with so many easy examples so without the further Ado let’s get started let’s first understand what are the decorators so a decorator in Python is a function that receives another function as input and adds some functionality that is decoration to it and returns it so simply we can say a decorator is a function that receives another function and it adds some decoration right and then it returns against the new function simple this can happen only because python functions are first class so what are the first class Orion which can be stored as a variable which can be passed as an argument and which can be returned from a function and even can be stored in a list dictionaries tles so those are the first class orions right similarly this happens in decorators also because python functions are first class Origins right so now let’s see there are two types of decorators available in Python the first is built-in decorators like static method class method abstract method and property which.
We have already seen somewhere at many places the second is user defined decorators that we programmers can create according to our needs means the second is custom decorators now let’s quickly understand the use cases of python decorators in the algo trading first python decorators can be used in logging so automatically log function calls and the results useful for monitoring and debugging trading operations right because with the help of decorators we can store or log the function calls and it really helps in the monitoring and the debugging right if there is any error comes we can quickly find out that what is the reason behind that and what functions is causing that error the second is timing so we can use the python decorators to measure the execution time of any program and again it is important for ensuring the performance of trading algorithms because in algo trading we need to know that which functions is taking how much time to execute because that decides the profitability right because in hft the game is all about the timing so we have to make sure that our program is taking less time right so we can use in logging and timing the third is retry mechanism so automatically retry a function if it raises specific exceptions so we can quote that if it raises a specific exception it will retry that function again it is useful for handling intermittent Network request or database operations so we can also code that for the intermittent network operations or for the database request we can use this the fourth is access control so it enforce access controls based on user roles or permissions ensures that only authorized users can perform certain actions so.
We can have some conditions in the python de functions so that it can only give access to those people who are authorized so we can use this in Access Control and the last but not the least is Resource Management so ensure proper acquisition and release of resources like database connections or files and helps manage resources efficiently and avoid leaks so it will definitely help in the resource utilization because we can monitor the performance with the help of decorators it will definitely and efficiently help in the resource utilization right so these decorators help improve code mendability readability and functionality in algorithmic trading system so let me quickly show you roughly what are the decorators and what functions they perform so let’s say we have a function which provides the create details so I’ll write trade details right and there can be any code so that’s not the concern here and we have another function and that we will be using as decorator what what this function do it will let me give it the name decorator so what it will do it will just add some functionality to this function right so what it will do it will just let’s say and sometimes we require some patterns right so let’s say if it is printing out some trade details so let’s say it is printing out some dictionary okay inside that it is giving that the symbol is Apple and let’s say price it is also giving let’s say 100 so means when we execute this function it is printing out these details but what we want that these details should be like printed in a good manner so what we will do we’ll just ask this decorator function that please decorate my this function so what it will do it will just print some decoration so let’s say it is printing some Stars here okay then it will call this function so here there will be a function call so can call Trade details and the function call and again below these also it will print some Stars so that it looks nice simple what will happen now first this will print the Stars right so the Stars will be printed out and then the function call is happening right so when this call happens it will print this so this will be printed here right.
Let’s say symbol and price and again it will print a star so I’m sure that you have seen in so many program execution or while installing any program that there is a pattern it can be a robot it can be a man a women any design any Star pattern or anything else so that we can also apply with the help of decorators so this is just a small example but now we’ll proceed with the real examples and I’ll make you understand that how we can use this in the algo trading right so without a further Ado let’s get started okay let’s define a function so for example we have function for SM strategy so strategy and inside that we are passing some trade data right so it will will be definitely a dynamic data so I’ll write trade data what is happening here first let me Define a trade data outside so trade data it can be a dictionary so here the key prices and the value of key is a list so let’s say it is 10 20 30 40 50 very simple right and inside that function what can be the prices it can be the trade data and and the key which is prices right and it will return the simple moving average so what it will be the sum of these prices right so what we can do I can just write sum of the prices divide by length of the prices as simple as that so now if I go ahead and call this function as SM strategy and pass the trade data I get 30 so that’s a very simple function correct let’s suppose we have multiple strategies let’s say we have around 1,000 strategies and we want to have some kind of function which can decorate all these strategies so we have two options one option is to go and change all the functions of every strategy another option is to just create another function which can handle all those strategies so what.
We will do now I’ll go ahead and create another function and let’s say I can give it so what it will do it can modify any strategy so modified strategy and here what I’ll do I’ll just pass any strategy so let’s say SMS strategy so I’ll give here the name of parameter it can be let’s say base strategy right it can be base strategy and the three data which is dynamic right so I can just write Dynamic data correct and what it will do for the sake of this example I’ll just I’ll just print some stars and I’ll say initializing uh modified strategy and I’ll copy and paste the same number of stars for the Symmetry correct and again I can print another statement let’s say here and we can give it name ending modify strategy correct and between these we can call this fun function right so we have passed this function as a base strategy here so I’ll write base strategy and the dynamic data I’ll just remove this function call for now I’ll just comment it out and now what we’ll do we’ll be calling this function right so modified strategy and inside that we’ll pass the SM strategy and the trade data correct so when.
We hit shift enter it is printing out both the values but not this one so for that we have to print this so I’ll just write print when we shift enter it gives us the 30 so now what is the benefit of this that we can keep this same and we can have another like th000 strategies like this and this can be used for every strategy let’s say I’ll quickly go ahead and create another strategy and it could be like let’s say bowling your band so BB strategy just for the example it is also returning same thing so I’ll just change the values here to right so now what what I can do I can just call instead of SM strategy I’ll just call BB strategy and it will give me 300 so that is the flexibility of these decorators and the usefulness of these decorators right so now let’s create another example which can be really used somewhere so what we will do I’ll just copy and paste this whole here and I’ll just remove this from and I’ll just change this modify strategy so I’ll write here the function name as calculate execution time correct and it can be same initializing modified strategy and here we can print this starting time so for that module.
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Day 19: Decorators
