Hello everyone,
I am very new to Quantopian and trading. I did some tutorials and rewrote some ideas to get a general idea of the algorithms.
Now my question is: How do I choose the amount of shares I buy?
For Example: I observe that the 20 day mean price is higher thant the 200 days mean price. Most tutorial just write order(stock, 20) or order_percent(stock, .1). However, I think there should be some strategies behind this.
My first idea (naive) idea would be to buy more of the stock that has a higher difference between 20 and 200 day mean (and alike for similar stock select algorithms).
If I want to keep my leverage below 1 (or 2), I cannot by anything that look great. Do I rather buy many of a stock that looks very perfect, or a set of different stocks that look good?
Do you know a tutorial, publication or text that covers this important part of trading?
Or do you have a nice strategy you want to share?
