Are you thinking of learning python for commodity trading? It’s a great idea. Whether for data analysis, trading backtesting, or risk management – you’ll be hedged.
Python For Commodity Trading
Data analysis is the KEY to effective decision making.
RELATED: Free Data Science Bootcamp: Save $20K
Whether you want to price options, back-test trading models, or implement a trading algorithm, Python will be a fantastic option for trading commodities and other assets.
Why Python?
Python is the language of data.
Python is perfect for data analysis because it is easy-to-learn, compact, and an industry-standard, also in commodity trading.
Python is commonly used for data science at prototyping and even at some production stages in hedge funds.
Start Learning Python Online
Nowadays the internet offers excellent learning platforms to get into python.
Some online courses to learn python are free, while other are freemium, with fairly low prices compared to bootcamps or a full time university degree.
The best resources for learning python online are:
Beginner Online Material
- Codecademy
Fantastic learning platform (free / ~$20/month).
Learn data science and web development with Javascript frameworks such as React, Angular, Express, Node, and MongoDB. - DataCamp
Slightly higher quality platform focused exclusively on data science. (free / ~$40$ per month).
Learn data science with Python or R (some still use it) - Crash Course on Python
Google developed this free introductory Python course on Coursera. Good to get started with Python as a coding language.
Advanced Material
- Machine Learning at Coursera by Andrew Ng / Stanford
Very highly regarded course on Machine Learning, to improve your analysis tools.
Practise Python With Market Data
- Quantopian
Quantopian was the best possible playground for algorithmic trading. It was closed around December 2020.
Quantopian offered free database access and demo tests so that you could learn the skills required to become a quant trader. Additionally, there were many video resources and additional tutorials to learn python for trading for free.
Reading List
Start learning today, prepare, prepare, and prepare.
Python is a trendy coding language so there’re plenty of available resources.
Beginner Python Books
- Think Python (Free PDF / Amazon)
New to Python? Start with this basic manual. - Learning Python (Amazon)
Introductory text to the main aspects of python.
Data Science Python Books
- Python for Data Analysis (Amazon)
Overview of the main techniques including using pandas, numpy, and ipython. - Python Data Science Handbook (Amazon)
Useful manual for python data scientists
Advanced Python Books
- The Hitchhiker’s Guide to Python (Amazon)
Learn to code “phytonically“, ie, the best practise for maximal readability and effectiveness. - Fluent Python (Amazon)
Learn to optimise your code and make it more efficient and effective. - Python Cookbook (Amazon)
Good book on optimal code.
Data Science Books
- Data Science From Scratch (Amazon)
Introductory text that gives a broad overview of the process. Recommended. - Doing Data Science (Amazon)
Fantastic book, yet compiled in R.
Statistics & Probability Books
- Think Stats (Free PDF / Amazon)
Fantastical brief intro to statistics and probability with Python. - Think Bayes (Free PDF / Amazon)
Introduction to Bayesian statistics using Python. - Practical Statistics For Data Scientists (Amazon)
Complexity Theory & Signal Processing Books
- Think Complexity (Free PDF / Amazon)
Learn about complexity – the intersection of math, computer science, and natural sciences. - Think DSP (Digital Signal Processing) (Free PDF / Amazon)
Learn how learn from digital signals by processing them statistically.
Machine Learning
- Introduction to Machine Learning With Python (Amazon)
Start here your adventure in Machine Learning! - Hands-On Machine Learning with Scikit-Learn & TensorFlow (Amazon)
Impressive book for those who want to bring their python skills to the next level with AI/ML. - Fundamentals of Deep Learning (Amazon)
Advanced material for proficient coders.
Careers for Python Coders / Quants
It’s no secret that the leading commodity traders, including Cargill, Total, Vitol and many other are hiring top-notch quants to model prices and catch trends early.
The most common positions for those with coding skills:
- Data Analyst
A data analyst will examine data and come up with actionable business insights. - Quant Analyst
A quant analyst will most likely be looking at derivatives pricing to ensure risks are controlled. - Quant Trader
A quant trader will ideate and partially implement trading strategies based on quantitative criteria. - Quant Developer
Most likely you’ll be adapting trading strategies and translating from python/R to production code like C++.
Are you ready to start your quant career?
