Exercise

Build an SMA-based signal strategy

It's time to build and backtest your first signal-based strategy. Although simple, these types of strategies can be effective, and also lay the groundwork for more complex strategies consisting of additional signals and information.

Implementing a price-comparison-based signal with bt is a straightforward process. You will first download some historical price data of the stock, calculate its SMA (simple moving average), implement an SMA-based signal strategy, and then backtest it with the stock price data.

The bt package has been imported for you.

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Download the Apple stock price data with its ticker aapl, save it as price_data, and calculate the 20-day SMA of price_data.