Trading Strategy Simulation

📈 Comparing dollar-cost averaging trading frequencies

This repository explores the topic of dollar-cost averaging strategy for investing, and how risk and return of assets could change as the investment interval varies.

We are typically interested in comparing weekly (5-day) vs monthly (20-day) investment frequency. The dataset is pulled via this python package yahoofinancials. We do backtesting by randomly sampling historical prices over a 5-year period since 2016 to construct portfolios, and use hypothesis testing to see if there's any significant difference between risks and returns over the studied period.

You can also find a related blog post on my website.

Kudos to Paul Tune and Cuong Duong for the code review!

Getting started

In order to run the notebook, you need to have all the required packages installed, run:

pip3 install -r requirements.txt

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Disclaimer

The work in this notebook is provided for informational purposes only, and should not be relied upon as legal, businesses, investment or tax advice. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services.