Python Machine Learning

A Deep Dive Into Python Machine Learning and Deep Learning, Using Tensor Flow And Keras: From Beginner To Advance

Leonard Eddison

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© Copyright 2018 by Leonard Eddison

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Table of Contents

Python Machine Learning

INTRODUCTION

WHY MACHINE LEARNING?

APPLYING LOGISTIC REGRESSION TO U.S. EQUITY MARKETS FOR PREDICTIVE TRADING (AMZN)

APPLYING PYTHON’S FFN MODULE TO BACKTEST TRADING SIGNALS FOR AMZN

KERAS CNN MODEL FOR DEEP LEARNING PREDICTIONS ON AMZN

FURTHER POTENTIAL RESOURCES & PATHS FOR MACHINE/DEEP LEARNING EXPLORATION

PYTHON PROGRAMMING:

Introduction

CHAPTER ONE: I WANT TO START PROGRAMMING

CHAPTER TWO: WHY LEARN PYTHON.

TOP 5 REASONS

CHAPTER THREE: PROS AND CONS OF LEANING PYTHON

CHAPTER FOUR: HOW TO INSTALL PYTHON

(Windows, Mac and Linux)

CHAPTER FIVE: INTERPRETER, INTERACTIVE

CHAPTER SIX: PYTHON or PERL

CHAPTER SEVEN: OBJECT ORIENTED

CHAPTER EIGHT: MODULES

CHAPTER NINE: LET’S DIVE IN

CHAPTER TEN: VARIOUS TYPES OF DATA

CHAPTER ELEVEN: SYNTAX

CHAPTER TWELVE: FUNCTIONS

CHAPTER THIRTEEN: CLASSES

CHAPTER FOURTEEN:  WHAT CAUSES FATAL ERRORS AND HOW TO FIX IT

CHAPTER FIFTHEEN: BEST PRACTICES FOR HANDLING WEBSITE ERRORS

CHAPTER SIXTEEN: WHY PYTHON IS HERE TO STAY

CONCLUSION

Python Machine Learning Applied to Financial Markets

INTRODUCTION

Throughout the recent years, artificial intelligence and machine learning have made some enormous, significant strides in terms of universal, global applicability. The ability to now be able to apply such algorithms via traditional and new dynamic programming languages allows us to interpret and understand these approaches much more eloquently. While machine and deep learning algorithms have become a common measure for significant model performance across multiple industries, the primary focus of this book will be to better understand how such algorithms are being applied specifically via financial markets through the usage of the python programming language. A language that continues to gain fast ground on other languages, due to its powerful versatility and adaptability to various types of APIs and platforms. This book is catered more towards someone who has already developed a relatively profound understanding with the python programming language, and is now looking to apply this skill set specifically towards machine and deep learning in finance. Throughout the book, we will outline a couple detailed scenarios in which we will apply different types of machine and deep learning algorithms towards real-life, financial market scenarios to help best bridge the connection between python and how it is being utilized in today’s day and age when it comes to artificial intelligence in the financial landscape.

WHY MACHINE LEARNING?

The obvious question many will ponder when it comes to artificial intelligence and its applicability towards financial markets is, why even trust it? To answer such a question seems very complicated on the surface; in that at the end of the day, can traditional fund managers really trust something that essentially will make its decisions on its own in absence of human intervention? The ability to even fathom such an approach for many modern age fund managers is undoubtedly questionable, and risky. Despite such concerns, many managers are now actually implementing a hybrid type of system, in which they are warming up to the idea of applying machine learning to their managed portfolios. However, by doing so in a sense of more security, where they allow some brief sense of human intervention during times of elevated market volatility. Or rather, during moments in which the algorithms seem to be acting up and disregarding the evolving dynamics of the market.

Such an approach, while it does utilize artificial intelligence, may sure be critiqued by true Wall Street quants, in that it is not purely quantitative trading. Nonetheless, we will approach the concepts and algorithms for this book from a perspective that is designed entirely towards applying the fundamentals of pure artificial intelligence in different types of financial markets; one with no pure form of human, or hybrid, intervention whatsoever. The underlying reasoning being that at the end of the day, if we can seem to create powerful machine learning models to predict market performance on such a level, we can maybe begin to slowly strip the general notion of emotional and irrational investment decision making from the equation. Such decision making that has historically been proven to fail the investment philosophy for both retail and experienced fund managers in that during times of high market stress and turmoil. In short, such irrational decisions have been proven to have a higher probability of playing into many lackluster investment choices. And generally speaking, result in poor investment outcomes.

This is something pure artificial intelligence and machine learning attempt to resolve by completely stripping such emotional decision making, and letting the machine make the ultimate, most rational of decisions with the highest probability of profitability potential. And with that, let’s jump into it! We will outline specifically a couple types of machine and deep learning algorithms that are beginning to be commonly used in the financial world for both retail traders, and large hedge fund managers. These algorithms being logistical regression, and recurrent neural networks. As you will notice, while the fundamental logic behind these algorithms are somewhat paralleled in reasoning, the mathematical mechanics that give way to their respective decision making process can significantly differ. For our first algorithm, we will be applying python’s module, scikit-learn, for machine learning prediction and trading. Further information on this library can be obtained at:

http://scikit-learn.org/stable/

APPLYING LOGISTIC REGRESSION TO U.S. EQUITY MARKETS FOR PREDICTIVE TRADING (AMZN)

In our first algorithm example, we will be applying an approach called logistic regression to help us predict price movements for traditional stocks within the U.S. equity markets via python. Logistic regression is a mathematical approach that has been around for quite some time now with the fundamental understanding behind it serving as a form of predictive analysis, in which the dependent variable (y variable) is binary.  Generally speaking, the dependent variable should be dichotomous in nature, with the absence of outliers. We should also be able to exhibit no multicollinearity, in which there should be no elevated correlations among the predictors (our x variables, or our features). From a mathematical perspective, logistic regression estimates a multiple learning regression function defined as:

One careful thing to be very cognizant of for logistic regression, and for all machine learning algorithms for the most part, is the notion of overfitting. The thought behind this is that by adding independent variables to a logistic regression model, we will undoubtedly tend to increase the total variance explained in the predictor variable. Nonetheless, adding too many variables to our model can result in overfitting; something that can reduce the general foundation of the model beyond the data that we use to fit the model. In essence, providing us with false interpretations on how well our model fits the data in question. With that said, let’s apply our mathematical foundation for logistic regression to the U.S. equity markets via python. For our specific example, we will use logistic regression to help us predict price movements for Amazon, Inc. (ticker: AMZN) one of the most valued and respected technology companies on Wall Street for many years now. For all purposes and intentions on our algorithms throughout the book, we will be using python version 3.6, and Pycharm, a very popular editor/compiler for python that allows us to run our code and generate output results. Pycharm can be downloaded at:

https://www.jetbrains.com/pycharm/

Please note that the full functioning code for all of our given examples will be included as attachments to the book as well. Upon downloading Pycharm, one can open up a new project, which will allow for a new .py, python file. We will first need to install all of the required libraries, or modules, our algorithm will need to run on. These are listed at the top of our code, and look like the following:

import numpy as np

import pandas as pd

import matplotlib.pyplot as plt

import ffn

from pandas_datareader import data as pdr

import fix_yahoo_finance as yf

import datetime

yf.pdr_override()

Before attempting to write any code, please make sure that these modules have all been properly installed and linked to your project directory via Pycharm. These can best be installed generally by using Pycharm’s very own internal capabilities to do so within the editor. Further, specific details on the install can be found at:

https://www.jetbrains.com/help/pycharm/installing-uninstalling-and-upgrading-packages.html

Upon successfully installing the libraries shown above, we will need to define a simple classification function; which will allow our algorithm to classify between buy and sell signals. The following function will return a 1 if the signal for the price movement on the stock is to be a buy and a -1 if the signal on the price movement on the stock is to be a sell. The classification function is displayed as the following:

def computeClassification(actual):

if (actual > 0):

return 1

else:

return -1

The 1 and -1 values that output from out classification function will be a result of Amazon’s experienced daily stock returns. With that, we are now ready to import our data, which will be done via the yahoo_finance library we have installed and imported in. We must first designate a start and end date for our logistic regression, machine learning algorithm to run off. For our examples, we will span our start and end dates from January 1, 2010 through October 29, 2018, in the following manner:

start = datetime.datetime(2010,1,1)

end = datetime.datetime(2018,10,29)

df = pdr.get_data_yahoo('AMZN', start=start, end=end)

Simply put, we are asking yahoo_finance to extract data for the ticker, AMZN, for our desired period of time, and assign it to the variable name ‘df.’ This will subsequently store the data in a newly created data frame by employing python’s pandas module. From here, manipulating of the data will become much easier. The next step will be to calculate daily returns for AMZN. We will be using the daily close price from our pandas data frame ‘df’ in order to do this. The method for this calculation is as follows:

# calculate daily returns

df['returns'] = np.log(df['Close'] / df['Close'].shift(1))

df['returns'].fillna(0)

df['returns_1'] = df['returns'].fillna(0)

df['returns_2'] = df['returns_1'].replace([np.inf, -np.inf], np.nan)

df['returns_final'] = df['returns_2'].fillna(0)

Upon calculation of daily returns, we are now ready to apply our classification function for 1’s and -1’s to these returns. If the stock return for AMZN was positive, we assign a 1, and if it was negative, a -1. This is done with the following line of code:

df.iloc[:, len(df.columns) - 1] = df.iloc[:, len(df.columns) - 1].apply(computeClassification)

Now that we have assigned our classification function to our dataset’s closing returns, we can go ahead and begin the organizational process for our logistical regression machine learning model. This entails us deciding what percent of our dataset we want to train the machine learning model on, and what percent we want to test the model on. This is a very subjective aspect of machine learning, with no clear right or wrong answer. While many data scientists like to assign such proportions equally, others will tend to skew more heavily. For our specific example, we will train the machine learning model on 90% of our data, while forward testing its results on the remaining 10% of our data. Thus, employing a 90-10 train to test ratio. The process is done with the following lines of code:

# Compute the last column (Y) -1 = down, 1 = up by applying the defined classifier above to the 'returns_final' dataframe

df.iloc[:, len(df.columns) - 1] = df.iloc[:, len(df.columns) - 1].apply(computeClassification)

# Now that we have a complete dataset with a predictable value, the last column “Return” which is either -1 or 1, create the train and test dataset.

# convert float to int so you can slice the dataframe

testData = df[-int((len(df) * 0.10)):]  # 2nd half is forward tested on

trainData = df[:-int((len(df) * 0.90))]  # 1st half is trained on

# replace all inf with nan

testData_1 = testData.replace([np.inf, -np.inf], np.nan)

trainData_1 = trainData.replace([np.inf, -np.inf], np.nan)

# replace all nans with 0

testData_2 = testData_1.fillna(0)

trainData_2 = trainData_1.fillna(0)

# X is the list of features

data_X_train = trainData_2.iloc[:, 0:len(trainData_2.columns) - 1]

# Y is the 1 or -1 value to be predicted (as we added this for the last column above using the apply.(computeClassification) function

data_Y_train = trainData_2.iloc[:, len(trainData_2.columns) - 1]

# Same thing for the test dataset

data_X_test = testData_2.iloc[:, 0:len(testData_2.columns) - 1]

data_Y_test = testData_2.iloc[:, len(testData_2.columns) - 1]

We are now finally ready to employ our logistical regression ML model to our dataset for AMZN. As mentioned before, we will be using python’s scikit-learn library in order to do this. The first step will be to import necessary libraries from scikit-learn:

from sklearn.linear_model import LogisticRegression

# DEFINE METHOD FOR PRINTING TRAIN AND TEST ACCURACY SCORE

from sklearn.model_selection import cross_val_score, cross_val_predict

from sklearn.metrics import accuracy_score, classification_report, confusion_matrix

The above imports allow us to set up our model parameters, along with testing configurations that enable us to analyze how well our model did in terms of price prediction for AMZN. Additionally, we can create a function, we will call print_score, that will allow us to assess the accuracy score for our model in terms of price prediction. This function is as follows:

def print_score(clf, data_X_train, data_y_train, data_X_test, data_y_test, train=True):

'''

print the accuracy score, classification report and confusion matrix of classifier

'''

if train:

'''

training performance

'''

print("Train Result:\n")

print("accuracy score: {0:.4f}\n".format(accuracy_score(data_y_train, clf.predict(data_X_train))))

print("Classification Report: \n {}\n".format(classification_report(data_y_train, clf.predict(data_X_train))))

print("Confusion Matrix: \n {}\n".format(confusion_matrix(data_y_train, clf.predict(data_X_train))))

res = cross_val_score(clf, data_X_train, data_y_train, cv=10, scoring='accuracy')

print("Average Accuracy: \t {0:.4f}".format(np.mean(res)))

print("Accuracy SD: \t\t {0:.4f}".format(np.std(res)))

elif train == False:

'''

test performance

'''

print("Test Result:\n")

print("accuracy score: {0:.4f}\n".format(accuracy_score(data_y_test, clf.predict(data_X_test))))

print("Classification Report: \n {}\n".format(classification_report(data_y_test, clf.predict(data_X_test))))

print("Confusion Matrix: \n {}\n".format(confusion_matrix(data_y_test, clf.predict(data_X_test))))

We are now ready to apply the built in logistical regression classifier within python’s scikit-learn library to our dataset for AMZN. In order to do so, we must first assign the classifier to a variable name, fit our training data for x (which is our predictor variables of open, high, low, and close) and our training data for y (simply, the close prices that we are trying to predict by using our classification method). This is done with the following lines of code:

# logistic regression

clf = LogisticRegression()

clf.fit(data_X_train, data_Y_train)

# predictions is an array containing the predicted values (-1 or 1) for the features in data_X_test.

# You can see the prediction accuracy using the method accuracy_score which compares the predicted values versus the expected ones.

from sklearn.metrics import accuracy_score

y_predictions = clf.predict(data_X_test)  # predict y based on x_test

print("Accuracy Score Employing Machine Learning: " + str(accuracy_score(data_Y_test, y_predictions)))

And in terms of classifying how well our model can predict the close price for AMZN, that is pretty much it. Running the code up through this segment will display results similar to the following:

Accuracy Score Employing Machine Learning: 0.5315315315315315

Telling us that essentially, for AMZN and our given time period employing a 90-10 train to test ratio, the logistic regression machine learning model was able to predict the close price for AMZN at an approx. 53% accuracy rate. While it may not be as much above the 50% threshold as desires, we can definitely see that there is something there in terms of a simple model such as this being able to employ logistical regression and mathematics to price prediction. Next, we will take our algorithm a step forward and create a simple backtest function that attempts to monitor and judge how well we would have done if we actually traded on our model for the specific test period in question, being roughly 10% of our data. Which amounts to roughly 222 trading days for AMZN, with the last day being October 29, 2018. In other words, going back from October 29, 2018 222 trading days in time.

APPLYING PYTHON’S FFN MODULE TO BACKTEST TRADING SIGNALS FOR AMZN

Now that we have our logistical regression model in place, the next step will be to apply a commonly used library in python called ffn to our dataset, in attempt to backtest how we could have done if we traded on our machine learning signals. Before we do so, we will add one final step in which we calculate a 200 day moving average for AMZN, to add as an extra layer of conviction, or filter, for our signals. In short, now not only does our machine learning signal have to return a 1 for us to buy, but the closing price for AMZN must always be above its 200 day moving average as well. And vice versa, in order to signal a sell, both the machine learning model must return -1, and the closing price for AMZN must be below the 200 day moving average. The code required to set this up is as follows:

df['SMA'] = df['Close'].rolling(200).mean()  # calculate n period SMA

df['Sell1'] = df['Close'] < df['SMA']

df['SELL'] = df['Sell1']

df['Buy1'] = df['Close'] > df['SMA']

df['BUY'] = df['Buy1']

buy_technical_signal = df['BUY'][-222:]  # extract last n daily signals

sell_technical_signal = df['SELL'][-222:]  # extract last n daily signals

print("buy technical signal length", len(buy_technical_signal))

print("sell technical signal length", len(sell_technical_signal))

print("buy technical signal", buy_technical_signal)

print("sell technical signal", sell_technical_signal)

buy_technical_signal = pd.DataFrame(buy_technical_signal)

sell_technical_signal = pd.DataFrame(sell_technical_signal)

pred = pd.DataFrame(predictions_dataframe)

print("prediction", pred)

print("PREDICTION LENGTH", len(predictions_dataframe))

pred['Signal'] = 0

# reindex data for later concatenation into 1 DataFrame - will all need same index to concat properly

buy_technical_signal.set_index(pred.index, inplace=True)

sell_technical_signal.set_index(pred.index, inplace=True)

# set up filters

filter1 = (predictions_dataframe[0] > 0)  # first buy filter (deep learning one)

filter2 = buy_technical_signal > 0  # second buy filter (technical one), > 0 implies argument is true (1)

filter3 = (predictions_dataframe[0]) < 0  # first sell filter (deep learning one)

filter4 = sell_technical_signal > 0  # second sell filter (technical one), > 0 implies argument is true (1)

# concatenate all data into 1 DataFrame for easy viewing/confirmation

pred2 = pd.concat([pred, buy_technical_signal, sell_technical_signal, filter1, filter2, filter3, filter4], axis=1)

pred2.columns = ['Pred', 'Signal', 'Buy Tech Signal', 'Sell Tech Signal', 'Filter1', 'Filter2', 'Filter3', 'Filter4']

# use np.where function to set Signal according to whether above filters are satisfied

pred2['Signal'] = np.where(pred2['Filter1'] & pred2['Filter2'], 1, 0)

pred2['Signal'] = np.where(pred2['Filter3'] & pred2['Filter4'], -1, pred2['Signal'])

buys = pred2.loc[pred2['Signal'] == 1]

sells = pred2.loc[pred2['Signal'] == -1]

# need to reindex the buys and sells DataFrames to match the index of 'df[Close]'

if not buys.empty:

buy_index_new = buys.index[-1] - buys.index

buy_index_new_2 = len(df.index) - buy_index_new

buys.set_index(buy_index_new_2, inplace=True)

if not sells.empty:

sell_index_new = sells.index[-1] - sells.index

sell_index_new_2 = len(df.index) - sell_index_new

sells.set_index(sell_index_new_2, inplace=True)

# iloc[row slicing, column slicing] Real Stock Price set to last n days of stock's close price

real_stock_price = df.iloc[-222:,3]  # first -n: element is length of predictions, 3rd column is close prices

real_stock_price = real_stock_price.values

real_stock_price = pd.DataFrame(real_stock_price)  # convert to pandas data frame

print(real_stock_price)

print("REAL STOCK PRICE", real_stock_price)

# Visualize strategy with a chart

# the buys and sells have integer range indices (i.e. 1,2,3....) whereas the df index has datetime values. Reindex df using:

df.set_index(pd.RangeIndex(0, len(df)), inplace=True)

# plot price

plt.plot(df.index, df['Close'], label='Asset')

# Plot the buy and sell signals on the same plot

plt.plot(sells.index, df.loc[sells.index]['Close'], 'v', markersize=10, color='r')

plt.plot(buys.index, df.loc[buys.index]['Close'], '^', markersize=10, color='g')

plt.ylabel('Price')

plt.xlabel('Date')

plt.legend(loc=0)

# Display everything

plt.show()

Our final step will be to create a backtest function and employ python’s ffn module to it, so that we can gain a deeper understanding on how well we could have predicted AMZN price returns using our logistical regression machine learning framework. Further information on this module can be found at:

https://pypi.org/project/ffn/

Before we can employ the ffn module to backtest results, we must create a basic backtesting function to use on the data. We will set the starting cash on the portfolio to $100,000. The function looks like the following:

# BACKTESTING

# define backtest method

def backtest(data):

cash = 100000  # set starting cash to $100,000

position = 0  # set position to 0 for current number of shares

total = 0

equity_curve_df = []

data['Total'] = 100000  # start with 100k for our strategy

# To compute the Buy and Hold value, I invest all of my cash in X asset on the first day of the backtest

increment = 10  # number of shares

for row in data.iterrows():

price = float(row[1][0])  # Remember that "iterrows" returns an indexer(i.e. 0,1,2,3,4....)  and the row of the DataFrame in a row vector - so you need to also reference the column you want in the row vector, hence the [1][3] - the 1 being the row (rather than the indexer), and the column within that row.

signal = pred2.iloc[row[0]][1]  # signal for our strategy, 2nd column in the dataframe is signals of 1 and -1

if (signal > 0 and cash - increment * price > 0):  # ensure signal is 1 (or > 0), and there is enough cash to place trade (100,000 - (1,000 * price of asset) > 0 )

# Buy

cash = cash - increment * price  # deduct how many shares we bought and update cash remaining value

position = position + increment  # position is 0 + 1,000 shares (this keeps on going and looping as long as cash is available for another buy, assuming signal is there)

# print(row[0].strftime('%d %b %Y') + " Position = " + str(position) + " Cash = " + str(cash) + " // Total = {:,}".format(int(position * price + cash)))

elif (signal < 0 and abs(position * price) < cash):  # ensure signal is -1 (or < 0), and absolute value of (position or shares sold * price of stock is less than cash value to allow trade)

# Sell

cash = cash + increment * price  # add cash value of portfolio to how many shares we sold, and update cash remaining value

position = position - increment  # position is new position (number of shares) - increment (or how many shares were sold)

# print(row[0].strftime('%d %b %Y') + " Position = " + str(position) + " Cash = " + str(cash) + " // Total = {:,}".format(int(position * price + cash)))

# data.loc[data.index == row[0], 'Total'] = float(position * price + cash) # return number of shares multiplied by price of asset + cash left in balance

equity_curve_df.append(float(position * price + cash))

# equity_curve_df = pd.DataFrame(equity_curve_df,index=range(len(equity_curve_df)),columns=["Total"])

index = pd.date_range('11/01/2017', periods=len(equity_curve_df), freq='D')

equity_curve_df = pd.DataFrame(equity_curve_df, index=index, columns=['Total'])

return equity_curve_df  # return number of shares multiplied by price of asset + cash left in balance

Finally, we can apply the ffn module to our defined backtest function to display the results of the strategy as follows:

# Backtest for our strategy to create equity curve df by running backtest function defined above

equity_curve_df = backtest(real_stock_price)  # for our strategy, backtest will be equal to the backtest(data) method we define above, utilizing our dataframe as the data

print(equity_curve_df)  # prints out cash value of backtest result in USD

# *******************************************************************************************************************************************************************************************************************************

# Apply Financial Functions for Python (FFN) to calculate statistics of algorithm

equity_curve_df['Equity'] = equity_curve_df

perf = equity_curve_df['Equity'].calc_stats()

# plot equity curve

perf.plot()

plt.show()

# show overall metrics

perf.display()

# display monthly returns

perf.display_monthly_returns()

# plotting visual representation of strategy drawdown series:

ffn.to_drawdown_series(equity_curve_df['Equity']).plot(figsize=(15, 7), grid=True)

#plt.show()

# plot histogram of returns

perf.plot_histogram()

#plt.show()

# extract lookback returns

#perf.display_lookback_returns()

print("Accuracy Score: " + str(accuracy_score(data_Y_test, y_predictions)))

# print_score(clf, data_X_train, data_Y_train, data_X_test, data_Y_test, train=True) # set to True for training

print_score(clf, data_X_train, data_Y_train, data_X_test, data_Y_test,train=False)  # set to False because we want testing now

print("CURRENT SIGNAL FOR SECURITY (1 FOR BUY, -1 FOR SELL, 0 FOR NEUTRAL):")

print(pred2.iloc[:,0])

The output for our code will create an equity price curve for how our initial $100,00 starting portfolio value would have faired through our specified testing period. Which for us, was 222 trading days going back from October 29, 2018. The equity price curve created by python looks like the following:

The associated actual backtest results created through the ffn module will look like:

The final line of code in our algorithm, being:

print("CURRENT SIGNAL FOR SECURITY (1 FOR BUY, -1 FOR SELL, 0 FOR NEUTRAL):")

print(pred2.iloc[:,0])

allows us to simply notice what the latest, or current signal based on the last data point of our dataset is for AMZN; 1 buying buy, and -1 being sell.

And in terms of logistical regression machine learning applied to a specific stock, that is pretty much it. Very simple for the most part to code up. The ffn module allowed us to take this algorithm and apply historical statistics to it, so that we can gain a better understanding of how we could have done by acting on its signals. For the next section, we will go ahead and apply a much different technique employing artificial intelligence as a means of comparison to this model for AMZN, and see if we can beat our current results. This will be done through a probabilistic approach, employing deep learning with python’s keras module.

KERAS CNN MODEL FOR DEEP LEARNING PREDICTIONS ON AMZN

Now, let us go ahead and compare the results from our logistical regression machine learning model for AMZN to a deep learning neural network approach, employing python’s popular keras CNN convolution neural network. Further information on this model can be found at:

https://keras.io/layers/convolutional/

In general, deep learning refers to neural networks with multiple hidden layers that can learning increasingly abstract representations of the input data. For this specific example, we will again take AMZN for the same time span of January 1, 2010 through October 29, 2018, and apply a CNN framework that attempts to predict closing prices through a probabilistic model. These thresholds of probability (i.e. conviction levels) will be coded in a subjective manner, upon which the user can alter to meet his or her specific parameter needs. For CNN models such as this, you generally have a series of inputs (convolutions), feature maps (sub-sampling) and fully connected output layers. While CNNs have typically been used more for image recognition utilizing artificial intelligence in the past, they have slowly made their way into the financial spectrum recently; and definitely showing promising signs.  For this specific example employing a CNN approach, we will use an 80-20 train test split ratio, in which we train on approx. 80% of our data, while testing on approx. 20%. This 20% amounts to approx. 439 trading days going back from October 29, 2018 (the last day in our data set).

In order to properly organize our training and testing data for the CNN algorithm, we will create a short script called ‘utils.py’, that will allow us to preprocess our dataset so that python can correctly interpret how to design and utilize the CNN model. Most importantly, this utils.py file is essential and required as a dependence for our algorithm to run off. The script written for this utils.py file is as follows:

def shuffle_in_unison(a, b):

# courtesy http://stackoverflow.com/users/190280/josh-bleecher-snyder

assert len(a) == len(b)

shuffled_a = np.empty(a.shape, dtype=a.dtype)

shuffled_b = np.empty(b.shape, dtype=b.dtype)

permutation = np.random.permutation(len(a))

for old_index, new_index in enumerate(permutation):

shuffled_a[new_index] = a[old_index]

shuffled_b[new_index] = b[old_index]

return shuffled_a, shuffled_b

def create_Xt_Yt(X, y, percentage=0.80): # test on n% of the data. When was at 0.8, was testing on 20% of the data, 0.477 to get pred = 362 for q learning q trader algo

p = int(len(X) * percentage)

X_train = X[0:p]

Y_train = y[0:p]

X_train, Y_train = shuffle_in_unison(X_train, Y_train)

X_test = X[p:]

Y_test = y[p:]

return X_train, X_test, Y_train, Y_test

def remove_nan_examples(data):

newX = []

for i in range(len(data)):

if np.isnan(data[i]).any() == False:

newX.append(data[i])

return newX

Similar to our first model employing logistical regression machine learning, our CNN deep learning model employing keras needs to first read in all of the required libraries:

from utils import *

import pandas as pd

import matplotlib.pylab as plt

from keras.models import Sequential

from keras.layers.core import Dense, Dropout, Activation, Flatten

from keras.layers.recurrent import LSTM, GRU

from keras.layers import Convolution1D, MaxPooling1D, AtrousConvolution1D, RepeatVector

from keras.callbacks import ModelCheckpoint, ReduceLROnPlateau, CSVLogger

from keras.layers.wrappers import Bidirectional

from keras import regularizers

from keras.layers.normalization import BatchNormalization

from keras.layers.advanced_activations import *

from keras.optimizers import RMSprop, Adam, SGD, Nadam

from keras.initializers import *

import ffn

import seaborn as sns

sns.despine()

from math import sqrt

from pandas_datareader import data as pdr

import fix_yahoo_finance as yf

import datetime

yf.pdr_override()

Upon importing the installed libraries, we can go ahead and assign the required variable parameters to lists, which will be the open, high, low, close, and volume for AMZN.

openp = data_original.ix[:, 'Open'].tolist()

highp = data_original.ix[:, 'High'].tolist()

lowp = data_original.ix[:, 'Low'].tolist()

closep = data_original.ix[:, 'Adj Close'].tolist()

volumep = data_original.ix[:, 'Volume'].tolist()

# data_chng = data_original.ix[:, 'Adj Close'].pct_change().dropna().tolist()

WINDOW = 30 # 30 day windows

EMB_SIZE = 5 # number of features (open, high, low, close, volume)

STEP = 1

FORECAST = 1 # forecasting 1 day out

X, Y = [], []

for i in range(0, len(data_original), STEP):

try:

o = openp[i:i+WINDOW]

h = highp[i:i+WINDOW]

l = lowp[i:i+WINDOW]

c = closep[i:i+WINDOW]

v = volumep[i:i+WINDOW]

# remember, we are not necessarily interested in predicting the exact value (thus, the expected value and variance of the future isn't very interesting (we just need to predict the up or down movement).

# normalize open, high, low, close, and volume by subtracting mean, and dividing by standard deviation

o = (np.array(o) - np.mean(o)) / np.std(o)

h = (np.array(h) - np.mean(h)) / np.std(h)

l = (np.array(l) - np.mean(l)) / np.std(l)

c = (np.array(c) - np.mean(c)) / np.std(c)

v = (np.array(v) - np.mean(v)) / np.std(v)

# Since we want to forecast the probability of moment either up or down the following day, we need to consider the change of a single dimension:

x_i = closep[i:i+WINDOW] # closing price of x values for the window of 30 days

y_i = closep[i+WINDOW+FORECAST] # closing price of y value (close) for the window of 30 days, + a forecast of 1 day out

last_close = x_i[-1] # previous day's close

next_close = y_i # predicted future close 1 day out

if last_close < next_close: # if next (or future close price 1 day out) was greater than prior day's close price.....

y_i = [1, 0] # price went up with 100% probability

else:

y_i = [0, 1] # price went down with 100% probability

x_i = np.column_stack((o, h, l, c, v)) # stack columns for open, high, low, close, and volume

except Exception as e:

break

X.append(x_i)

Y.append(y_i)

Next, we can go ahead and employ our created functions from our utils.py file in order to preprocess our data for the CNN algorithm, so that python will be able to correctly assess how to structure and prepare the framework to run properly. Done as follows:

X, Y = np.array(X), np.array(Y)

X_train, X_test, Y_train, Y_test = create_Xt_Yt(X, Y) # utilize function from utils.py to create x train, x test, y train, y test , see method 'def create_Xt_Yt' in utils.py: we are training on 90% , and testing on 10%

# scale data

X_train = np.reshape(X_train, (X_train.shape[0], X_train.shape[1], EMB_SIZE))

X_test = np.reshape(X_test, (X_test.shape[0], X_test.shape[1], EMB_SIZE))

Similar to our prior model, for additional trading conviction, we will code up some technical indicators that can be added to the neural network as a means of providing us with additional trading signals of higher probability. We will allow for the possibility of including simple moving averages, standard deviations, Bollinger bands, MACD, RSI, and momentum. The can be coded as follows:

# TECHNICAL INDICATORS

data_original['Stdev'] = data_original['Adj Close'].rolling(window=90).std()  # calculate rolling std

data_original['SMA'] = data_original['Adj Close'].rolling(100).mean()  # calculate n tick SMA

# Bollinger Bands

data_original['Upper Band'] = data_original['SMA'] + (data_original['Stdev'] * 1)  # 1 standard deviations above

data_original['Lower Band'] = data_original['SMA'] - (data_original['Stdev'] * 1)  # 1 standard deviations below

# MACD 12,26,9

data_original['stock_df_12_ema'] = pd.ewma(data_original['Close'], span=12)

data_original['stock_df_26_ema'] = pd.ewma(data_original['Close'], span=26)

data_original['stock_df_macd_12_26'] = data_original['stock_df_12_ema'] - data_original['stock_df_26_ema']

data_original['stock_df_signal_12_26'] = pd.ewma(data_original['stock_df_macd_12_26'], span=9)

data_original['stock_df_crossover_12_26'] = data_original['stock_df_macd_12_26'] - data_original['stock_df_signal_12_26'] # means, if this is > 0, or stock_df['Crossover'] =  stock_df['MACD'] - stock_df['Signal'] > 0, there is a buy signal

# means, if this is < 0, or stock_df['Crossover'] =  stock_df['MACD'] - stock_df['Signal'] < 0, there is a sell signal

# RSI

def RSI(series, period):

delta = series.diff().dropna()

u = delta * 0

d = u.copy()

u[delta > 0] = delta[delta > 0]

d[delta < 0] = -delta[delta < 0]

u[u.index[period - 1]] = np.mean(u[:period])  # first value is sum of avg gains

u = u.drop(u.index[:(period - 1)])

d[d.index[period - 1]] = np.mean(d[:period])  # first value is sum of avg losses

d = d.drop(d.index[:(period - 1)])

rs = pd.stats.moments.ewma(u, com=period - 1, adjust=False) / \

pd.stats.moments.ewma(d, com=period - 1, adjust=False)

return 100 - 100 / (1 + rs)

data_original['RSI'] = RSI(data_original['Adj Close'],14)  # RSI function of series defined by the close price, and period of choosing (defaulted to 14)

# calculate daily returns

data_original['returns'] = np.log(data_original['Adj Close'] / data_original['Adj Close'].shift(1))

data_original['returns'].fillna(0)

data_original['returns_1'] = data_original['returns'].fillna(0)

data_original['returns_2'] = data_original['returns_1'].replace([np.inf, -np.inf], np.nan)

data_original['returns_final'] = data_original['returns_2'].fillna(0)

# Momentum setup for parameters over a rolling mean time window of 2 ( i.e average of past two day returns)

data_original['mom'] = np.sign(data_original['returns_final'].rolling(5).mean())

Now that we have properly pre processed our data for AMZN, we are ready to create and apply our CNN deep learning neural network to the data. We have chosen the CNN model specifically for its flexibility and interpretability of hyper parameters. We will apply the CNN framework to a sequential model, train our data, and finally compute our model accuracy and loss estimates using keras. This is done in the following manner:

Models in Keras can come in two forms – Sequential and via the Functional API.  For most deep learning networks that you build, the Sequential model is likely what you will use.

This allows you to easily stack sequential layers (and even recurrent layers) of the network in order from input to output.  The functional API allows you to build more complicated architectures.

model = Sequential() Configures the model for training

1st layer of the 1D Convolution, i.e. temporal convolution. This layer creates a convolution kernel that is convolved with the layer input over a single spatial dimension to produce a tensor of outputs.

Also, notice that we don’t have to declare any weights or bias variables like we do in TensorFlow, as Keras sorts that out for us.

model.add(Convolution1D(input_shape = (WINDOW, EMB_SIZE), # 3D tensor with shape: (samples, steps, input_dim). For us, windows = 30 is steps and EMB_SIZE = 5 is input_dim.

nb_filter=16, nb_filter: Number of convolution kernels to use (dimensionality of the output)

filter_length=4, The extension (spatial or temporal) of each filter.

border_mode='same')) # : 'valid', 'same', or 'full' ('full' requires the Theano backend).

model.add(BatchNormalization()) Normalize the activations of the previous layer at each batch, i.e. applies a transformation that maintains the mean activation close to 0 and the activation standard deviation close to 1.

model.add(LeakyReLU()) The rectifier is an activation function (what defines the output of a node given an input or set of inputs). Leaky version of a Rectified Linear Unit. Leaky ReLUs allow a small, non-zero gradient when the unit is not active.

Leaky ReLUs are one attempt to fix the "dying ReLU" problem. Instead of the function being zero when x < 0, a leaky ReLU will instead have a small negative slope (of 0.01, or so)

That is, the function:

computes f(x)=??(x<0)(αx)+??(x>=0)(x) where α is a small constant. Some people report success with this form of activation function, but the results are not always consistent.

model.add(Dropout(0.5)) # fraction of neurons (inputs) to drop. goal for dropout is to help neural network not overfit the data. We randomly deactivate 50% of certain units (neurons) in each layer by setting some of the dimensions in our input vector to be zero with probability keep_prob.

Thus the neural network will continue to learn different. Training thus will be faster.

2nd Layer, no input shape given (only needed to be defined in 1st layer above)

model.add(Convolution1D(nb_filter=8,

filter_length=4,

border_mode='same'))

model.add(BatchNormalization())

model.add(LeakyReLU())

model.add(Dropout(0.5))

model.add(Flatten()) This operation flattens the input (or rows of a 3D matrix). It  does not affect the batch size. Flatten() operator unrolls the values beginning at the last dimension.

INPUT LAYER

model.add(Dense(64)) Dense(64) is a fully-connected layer with 64 hidden units. A dense layer represents a matrix vector multiplication. (assuming your batch size is 1)

The values in the matrix are the trainable parameters which get updated during backpropagation. A dense layer thus is used to change the dimensions of your vector.

Mathematically speaking, it applies a rotation, scaling, translation

transform to your vector. In simple terms, A dense layer is just a regular layer of neurons in a neural network. Each neuron recieves input from all the neurons in the previous layer, thus densely connected. The layer has a weight matrix W, a bias vector b, and the activations of previous layer a.

model.add(BatchNormalization())

model.add(LeakyReLU())

OUTPUT LAYER

model.add(Dense(2)) # Dense(64) is a fully-connected layer with 2 hidden units.

model.add(Activation('softmax')) We apply the softmax activation function; typically used for models with probabilistic approach, such as this.

2.COMPILE THE NEURAL NETWORK MODEL

opt = Nadam(lr=0.002)  # Define optimizer. We will use the Nadam optimizer. https://keras.io/optimizers/. Much like Adam is essentially RMSprop with momentum, Nadam is Adam RMSprop with Nesterov momentum.

Adapting the learning rate for your stochastic gradient descent optimization procedure can increase performance and reduce training time. Thus, the simplest and perhaps most used adaptation of learning rate during training are techniques that reduce the learning rate over time. These have the benefit of making large changes at the beginning of the training procedure when larger learning rate values are used, and decreasing the learning rate such that a smaller rate and therefore smaller training updates are made to weights later in the training procedure.

This training procedure has the effect of quickly learning good weights early and fine tuning them later. Two popular and easy to use learning rate schedules are as follows:

A. Decrease the learning rate gradually based on the epoch.

B. Decrease the learning rate using punctuated large drops at specific epochs.

The following are a few arguments for optimizers:

1. lr: learning rate, float >= 0.

2. beta_1, beta_2: floats, 0 < beta < 1. Generally close to 1.

3. epsilon: float > = 0. Fuzz factor. If None, defaults to K.epsilon().

reduce_lr = ReduceLROnPlateau(monitor='val_acc', factor=0.9, patience=30, min_lr=0.000001, verbose=1) https://keras.io/callbacks/#reducelronplateau.

Reduce learning rate by a pre-defined factor when a metric has stopped improving:

Models often benefit from reducing the learning rate by a factor of 2-10 once learning stagnates. This callback monitors a quantity and if no improvement is seen for a 'patience' number of epochs, the learning rate is reduced.

Arguments include:

1. monitor: quantity to be monitored

2. factor: factor by which the learning rate will be reduced. new_lr = lr * factor

3. patience: number of epochs with no improvement after which learning rate will be reduced.

4. verbose: int. 0: quiet, 1: update messages.

5. min_lr: lower bound on the learning rate.

checkpointer = ModelCheckpoint(filepath="lolkek.hdf5", verbose=1, save_best_only=True) Checkpoint allows us to save the model after every epoch. It creates a custom callback by extending the base class keras.callbacks.Callback. A callback has access to its associated model through the class property self.model.

Arguments for this method include:

1. filepath: string, path to save the model file.

2. monitor: quantity to monitor.

3. verbose: verbosity mode, 0 or 1.

4. save_best_only: if save_best_only=True, the latest best model according to the quantity monitored will not be overwritten.

model.compile(optimizer=opt, Optimization is whatever we set optimizer to

loss='categorical_crossentropy', https://keras.io/losses/ . Decide which loss function will be applied. The actual optimized objective is the mean of the output array across all data points.

metrics=['accuracy']) https://keras.io/metrics/ . Goal is to return a single tensor value representing the mean of the output array across all data points.

history = model.fit(X_train, Y_train, Fit the model using X_train, and Y_train data. https://keras.io/models/sequential/

nb_epoch = 100, Number of epochs to train the model. An epoch is an iteration over the entire x and y data provided.

batch_size = 128, Number of samples per gradient update. If unspecified, it will default to 32.

verbose=1, Show updated messages when set to 1.  0 = silent, 1 = progress bar.

validation_data=(X_test, Y_test), Tuple (x_val, y_val) or tuple (x_val, y_val, val_sample_weights) on which to evaluate the loss and any model metrics at the end of each epoch. The model will not be trained on this data. This will override validation_split.

callbacks=[reduce_lr, checkpointer], List of keras.callbacks.Callback instances. List of callbacks to apply during training.

shuffle=True) Shuffle: Boolean (whether to shuffle the training data before each epoch) or str (for 'batch'). 'batch' is a special option for dealing with the limitations of HDF5 data; it shuffles in batch-sized chunks. Has no effect when steps_per_epoch is not  None.

3. PREDICT MODEL OUTPUT FOR OUT OF SAMPLE Y_TEST

model.load_weights("lolkek.hdf5") Loads the weights of the model from a HDF5 file (created by  save_weights). By default, the architecture is expected to be unchanged. https://keras.io/models/about-keras-models/

pred = model.predict(np.array(X_test)) Predict output for out of sample Y_test, setting X_test (our out of sample features) to a numpy array

USE CONFUSION MATRIX TO HELP CHECK FOR OVERFITTING:

from sklearn.metrics import classification_report

from sklearn.metrics import confusion_matrix

C = confusion_matrix([np.argmax(y) for y in Y_test], [np.argmax(y) for y in pred])

print(C / C.astype(np.float).sum(axis=1))

Example of a Classification output would be as follows:

[[ 0.75510204  0.24489796]

[ 0.46938776  0.53061224]]

In which we forecasted up movements with 75%, and down movements with 53% , off diagonal elements are those mislabeled by the classifier.

And finally, we can plot our model loss and accuracy for our training and testing data as follows:

PLOT MODEL LOSS & ACCURACY

plt.figure()

plt.plot(history.history['loss'])

plt.plot(history.history['val_loss'])

plt.title('model loss')

plt.ylabel('loss')

plt.xlabel('epoch')

plt.legend(['train', 'test'], loc='best')

plt.show()

plt.figure()

plt.plot(history.history['acc'])

plt.plot(history.history['val_acc'])

plt.title('model accuracy')

plt.ylabel('accuracy')

plt.xlabel('epoch')

plt.legend(['train', 'test'], loc='best')

plt.show()

The code runs through multiple iterations as defined by our epochs and batch sizes above, and subsequently generates a nice plot for both model loss and accuracy on our testing period of approx. 439 trading days as follows:

Now that we have applied the CNN model to our dataset successfully, we are able to go ahead and code specific technical indicators (that recall we defined before) into the CNN framework. This can be done in the following manner:

df_close = data_original['Adj Close'][-439:].reset_index(drop=True)

df_SMA = data_original['SMA'][-439:].reset_index(drop=True)

df_mom = data_original['mom'][-439:].reset_index(drop=True)

df_MACD = data_original['stock_df_crossover_12_26'][-439:].reset_index(drop=True)

df_RSI = data_original['RSI'][-439:].reset_index(drop=True)

df_upper_band = data_original['Upper Band'][-439:].reset_index(drop=True)

df_lower_band = data_original['Lower Band'][-439:].reset_index(drop=True)

df_buy1 = df_close > df_SMA

df_buy2 = df_mom > 0

df_buy3 = df_RSI < 55

df_buy4 = df_MACD > 0

df_BUY = df_buy1 + df_buy2 + df_buy3 + df_buy4

df_BUY_FINAL = df_BUY.reset_index(drop=True)

df_sell1 = df_close < df_SMA

df_sell2 = df_mom < 0

df_sell3 = df_RSI > 50

df_sell4 = df_MACD < 0

df_SELL = df_sell1 + df_sell2 + df_sell3 + df_sell4

df_SELL_FINAL = df_SELL.reset_index(drop=True)

And now onto probably the most crucial part of this CNN framework, which is where we actually go ahead and assign a probability threshold to when we want our buy and sell signals to appear. For this particular example on AMZN, we have defined these key levels as 0.57 and 0.41. Meaning, if the algorithm generates a probability of 57% or more that the signal is going to be a buy, we buy. And contrarily, if it generates a probability that the buy signal is only at 41% or more, we actually go ahead and sell. The generally underlying notion here being that we only want to buy AMZN if the probability of it going up tomorrow is above a certain threshold, being 57% in this case. Again, these levels can be altered to whatever one wants when playing around with the algorithm and fine tuning results. Additionally, recall we have also coded in technical indicators as an extra layer of conviction for our trading signals. As shown above in the prior block of code, for this example, these include simple moving averages, momentum, RSI, and MACD. All of which must unanimously point to a buy or a sell in addition to the CNNs signals in order for a trade to pass prerequisites and actually take place.

The code associated with this is as follows:

#set up filters

filter1 = (pred[0] > 0.57) # buy filter, 1st column [0] of pred dataframe (recall 2nd column [1] is simply % that stock will drop)

filter2 = (pred[0] < 0.41) # sell filter, 1st column [0] of pred dataframe (recall 2nd column [1] is simply % that stock will drop#)

filter3 = buy_technical_signal > 0  # second buy filter (technical one), > 0 implies argument is true (1)

filter4 = sell_technical_signal > 0  # second sell filter (technical one), > 0 implies argument is true (1)

#concatenate all data into 1 DataFrame for easy viewing/confirmationpip

pred2 = pd.concat([pred,filter1,filter2, filter3, filter4],axis=1)

print(pred2)

pred2.columns = ['Pred 1st Column','Pred 2nd Column','Signal','Filter1','Filter2', 'Filter3', 'Filter4']

#use np.where function to set Signal according to whether above filters are satisfied

pred2['Signal'] = np.where(pred2['Filter1'] & pred2['Filter3'],1,0)

pred2['Signal'] = np.where(pred2['Filter2'] & pred2['Filter4'],-1,pred2['Signal'])

buys = pred2.loc[pred2['Signal'] == 1]

sells = pred2.loc[pred2['Signal'] == -1]

# need to reindex the buys and sells DataFrames to match the index of 'data_original[Close]'

if not buys.empty:

buy_index_new = buys.index[-1] - buys.index

buy_index_new_2 = len(data_original.index) - buy_index_new

buys.set_index(buy_index_new_2,inplace=True)

if not sells.empty:

sell_index_new = sells.index[-1] - sells.index

sell_index_new_2 = len(data_original.index) - sell_index_new

sells.set_index(sell_index_new_2,inplace=True)

# iloc[row slicing, column slicing] Real Stock Price set to last 788 days of stock's close price

real_stock_price = data_original.iloc[-439:,4] # length of predictions_dataframe is the last 1,607 days when training at 80%, testing 20% of total data . 4th column is close prices

real_stock_price = real_stock_price.values

real_stock_price = pd.DataFrame(real_stock_price) # convert to pandas data frame

print(real_stock_price)

print("REAL STOCK PRICE",real_stock_price)

Our algorithm is now finally setup to begin backtesting. Similar to before, we will see the starting portfolio value at $100,000, and implement a similar backtest function as our logistic regression model, in attempt to see if we can beat our initial model’s performance by employing our new CNN neural network to AMZN during the same time period. Again, we will first write the backtesting function, and then as before apply python’s ffn module to it for results. Done as follows:

# define backtest method

def backtest(data):

cash = 100000 # set starting cash to $100,000

position = 0 # set position to 0 for current number of shares

total = 0

equity_curve_df = []

data['Total'] = 100000 # start with 100k for our strategy

# To compute the Buy and Hold value, I invest all of my cash in X asset on the first day of the backtest

increment = 50 # number of shares

for row in data.iterrows():

price = float(row[1][0]) # Remember that "iterrows" returns an indexer(i.e. 0,1,2,3,4....)  and the row of the DataFrame in a row vector - so you need to also reference the column you want in the row vector, hence the [1][3] - the 1 being the row (rather than the indexer), and the column within that row.

signal = pred2.iloc[row[0]][2]  # signal for our strategy, 3rd column in the pred2 dataframe is signals of 1 and -1

if (signal > 0 and cash - increment * price > 0): # ensure signal is 1 (or > 0), and there is enough cash to place trade (100,000 - (1,000 * price of asset) > 0 )

# Buy

cash = cash - increment * price # deduct how many shares we bought and update cash remaining value

position = position + increment # position is 0 + 1,000 shares (this keeps on going and looping as long as cash is available for another buy, assuming signal is there)

#print(row[0].strftime('%d %b %Y') + " Position = " + str(position) + " Cash = " + str(cash) + " // Total = {:,}".format(int(position * price + cash)))

elif (signal < 0 and abs(position * price) < cash): # ensure signal is -1 (or < 0), and absolute value of (position or shares sold * price of stock is less than cash value to allow trade)

# Sell

cash = cash + increment * price # add cash value of portfolio to how many shares we sold, and update cash remaining value

position = position - increment # position is new position (number of shares) - increment (or how many shares were sold)

#print(row[0].strftime('%d %b %Y') + " Position = " + str(position) + " Cash = " + str(cash) + " // Total = {:,}".format(int(position * price + cash)))

equity_curve_df.append(float(position * price + cash))

# equity_curve_df = pd.DataFrame(equity_curve_df,index=range(len(equity_curve_df)),columns=["Total"])

index = pd.date_range('03/01/2018', periods=len(equity_curve_df), freq='D')

equity_curve_df = pd.DataFrame(equity_curve_df, index=index, columns=['Total'])

return equity_curve_df  # return number of shares multiplied by price of asset + cash left in balance

# Now, implement backtest method defined above:

# Backtest for our strategy to create equity curve df by running backtest function defined above

equity_curve_df  = backtest(real_stock_price) # for our strategy, backtest will be equal to the backtest(data) method we define above, utilizing our dataframe as the data

print(equity_curve_df) # prints out cash value of backtest result in USD

# Apply Financial Functions for Python (FFN) to calculate statistics of algorithm

equity_curve_df['Equity'] = equity_curve_df

perf = equity_curve_df['Equity'].calc_stats()

# plot equity curve

perf.plot()

plt.show()

# show overall metrics

perf.display()

# display monthly returns

perf.display_monthly_returns()

# plotting visual representation of strategy drawdown series:

ffn.to_drawdown_series(equity_curve_df['Equity']).plot(figsize=(15,7),grid=True)

#plt.show()

# plot histogram of returns

perf.plot_histogram()

#plt.show()

# extract lookback returns

perf.display_lookback_returns()

# PRINT COLUMN OF SIGNALS FOR THE STRATEGY

print("CURRENT SIGNAL FOR ALGORITHM: 1: BUY, 0: HOLD, -1:SELL")

print(pred2.iloc[:,2])

The model results, including our equity curve and backtest function were as follows:

Comparing results from our CNN neural network to our initial logistical regression machine learning model, we immediately notice that the CNN model outperformed. Recall for the logistical regression model, total return was approx. 28.9%, compared to 73.0% for the CNN model. Ok, that is great, but what about drawdown? We notice that for the logistical regression model, drawdown was approx. -23.6% with a Sharpe of 1.15. When compared to our new CNN model, drawdown actually falls very close at -22.4%, but a Sharpe ratio of 1.48 nicely outperforms the 1.15 exhbited by the logistical regression model. At initial glance and analysis, I would think it would be safe to say that at least based on these preliminary statistics, the CNN model might show more promise for model performance when compared to the logistical regression model.

At least for AMZN, during the specific time interval we tested the dataset on. Again, if we change the time interval, and even the ticker to other stock, results for these models when compared side by side can undoubtedly vary. This is why it is important to test these circumstances for different stocks at a time, along with different associated time frames. At least, in order to possibly best attain the highest conviction rates possible. Also, it is important to keep in mind that while we only tested 10% of the dataset’s tail end for the logistical regression model, we tested 20% on the CNN model. Despite that though, at least for AMZN during the allotted time span, we have ample evidence to confidently confirm that our second CNN neural network grossly outperformed the logistical regression model. For future testing purposes, we can always compare both models on a basket of stocks, as opposed to only one name at a time, and apply multiple time filters in attempt to raise our conviction further for which model is more sincerely superior on a comparative basis.

FURTHER POTENTIAL RESOURCES & PATHS FOR MACHINE/DEEP LEARNING EXPLORATION

Throughout our initial research and artificial intelligence algorithm creation efforts, we have already been able to reveal quite a lot when it comes to employing both machine and deep learning perspectives to a financial market environment. The statistics behind our two models seemed to undoubtedly support the second CNN deep learning probabilistic approach over the initial logistical regression machine learning one.  Can we quickly come to the conclusion that the CNN is a better overall long-term model? Well, probably not. To truly get closer to which model may outperform the other, I would think it would be best to first employ these models on hundreds of other stocks in a given portfolio (or even alternate markets), along with multiple time frames (i.e. hourly, weekly, monthly). Doing so would probably better allow us to diversify our perspective in terms of which models seem to adapt and conform best to which specific markets at given periods of time. However, to handle such a task manually would probably be more cumbersome than anything; which is partly why many fund managers and quant firms on Wall Street are now investing large amounts of capital towards ‘super computers’ and big data in hope of seeking out such results in a much faster and efficient time frame.

In terms of different types of both machine and deep learning models, we have only touched the tip of the iceberg through our research efforts and exploration for these technologies. For python specifically, scikit-learn offers multiple types of machine learning frameworks in addition to logistical regression; ones that if utilized properly, could possibly outperform both of our models. A few popular approaches through scikit-learn and machine learning for finance are revolved around support vector machines, linear regression, K Nearest Neighbors, Naïve Bayes, etc. For keras and deep learning, another very popular model gaining traction in finance in addition to CNN is referred to as long short term memory (LSTM). These models are a special type of recurrent neural networks (RNNs), capable of learning long-term dependencies amongst dependent and independent variables and are now beginning to be applied to multiple types of global financial markets for predictive purposes. In terms of model stacking through ensembles, one will quickly recognize that with so many different options out there, the possibilities of creating multiple types of models is almost endless. Despite that, having the undying determination to attempt to create the one model that simply conforms and adapts to different market conditions better than any other is for many quant traders and analysts in itself, significantly rewarding. After all, If such an objective is attained with high levels of predictive probability, the rewards that could lie around the corner for such a milestone in breakthrough and achievement will probably be immense.

And with that, we finally circle back to our initially proposed fundamental question. Is machine learning is in fact the best approach to take on a long-term scale for predictive purposes; such as that for stock prices? The debate is one that continues to grow amongst the global financial community. And with the recent advancements in artificial intelligence and computing power, will probably only intensify in the coming years. One thing is for certain though; whether you are one who believes in its proposed promise. or one who is sincerely skeptical, artificial intelligence and machine learning is definitely not going anywhere. In addition to the stock market, its technologies are now being heavily implemented in the auto industry, video gaming via virtual reality, and within multiple medical avenues as well. The promise it brings to us in terms of making our everyday lives more convenient, and efficient, is one that is gaining mass respect as our technologies, such as python, continue to evolve and improve.

When it comes to applying such technologies to finance in general, it will probably come down to one fundamental aspect of reason. And that is, in time, will these intelligence machines actually be able to outperform the traditional Wall Street fund managers? Many of whom have been able to consistently, and respectfully, beat the market on a consistent basis many consecutive years. If this is in fact a reality, then I would say that there is no question in my mind that we are likely on the brink of the largest technological revelation Wall Street has ever experienced. Given that machines and deep learning continues to gain ground through more reliable computers utilizing cloud and big data services. And after all is said and done, will these mathematically generated formulas be able to deliver on their rising hype for consistently beating the market?  Well, in that regard, I think it would be fair to say that only time will tell.

PYTHON PROGRAMMING:

A Step By Step Guide For Beginner

Leonard Eddison

© Copyright 2018 by Leonard Eddison

All rights reserved.

This document is geared towards providing exact and reliable information with regards to the topic and issue covered. The publication is sold with the idea that the publisher is not required to render accounting, officially permitted, or otherwise, qualified services. If advice is necessary, legal or professional, a practiced individual in the profession should be ordered.

- From a Declaration of Principles which was accepted and approved equally by a Committee of the American Bar Association and a Committee of Publishers and Associations.

In no way is it legal to reproduce, duplicate, or transmit any part of this document in either electronic means or in printed format. Recording of this publication is strictly prohibited and any storage of this document is not allowed unless with written permission from the publisher. All rights reserved.

The information provided herein is stated to be truthful and consistent, in that any liability, in terms of inattention or otherwise, by any usage or abuse of any policies, processes, or directions contained within is the solitary and utter responsibility of the recipient reader. Under no circumstances will any legal responsibility or blame be held against the publisher for any reparation, damages, or monetary loss due to the information herein, either directly or indirectly.

Respective authors own all copyrights not held by the publisher.

The information herein is offered for informational purposes solely and is universal as so. The presentation of the information is without contract or any type of guarantee assurance.

The trademarks that are used are without any consent, and the publication of the trademark is without permission or backing by the trademark owner. All trademarks and brands within this book are for clarifying purposes only and are the owned by the owners themselves, not affiliated with this document.

Introduction

Chances аrе, if уоu'rе viewing thiѕ page, уоu'rе new tо Python.

Yоu might even bе new tо Prоgrаmming аltоgеthеr. Eithеr wау, уоu hаvе come tо thе right рlасе аnd сhоѕеn the right lаnguаgе!

Python is an easy to learn programming language, and I hope this book will convince you to take in consideration using it for your future projects. It is a great language for either beginners who are approaching the programming world or if you are already a professional programmer.

You don’t have to be an expert to comprehend this book due to the fact that it will explain Python and the basic programming functions  through a simple step-by-step process. It is also appropriate for those who are approaching computer programming for the first time.

You don’t need to have a particular OS in order to run Python because it works perfectly on every OS.

In the first chapters, we will discuss the importance of learning how to use Python, its pros and cons.

In the fourth chapter, we will go through the process to install Python on Windows, Mac, and Linux.

From the fifth chapter, we will start a step-by-step process designed to take you from a pure beginner, who is approaching the programming world, to a student ready to start more complex projects.

I hope you enjoy this book…

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CHAPTER ONE: I WANT TO START PROGRAMMING

Pуthоn is a powerful, high-lеvеl, object-oriented рrоgrаmming lаnguаgе created by Guidо vаn Rossum.

It hаѕ ѕimрlе, еаѕу-tо-uѕе ѕуntаx, making it thе perfect lаnguаgе fоr ѕоmеоnе who is trуing tо lеаrn соmрutеr рrоgrаmming for thе firѕt timе.

Thiѕ is a соmрrеhеnѕivе guidе оn hоw tо gеt started in Pуthоn, why уоu should learn it, and how уоu саn lеаrn it.

What iѕ Pуthоn? - Thе Bаѕiсѕ

Bеfоrе gеtting ѕtаrtеd, lеt’ѕ gеt familiarized with the lаnguаgе.

Python iѕ a general-purpose lаnguаgе. It hаѕ a widе rаngе оf аррliсаtiоnѕ frоm Wеb dеvеlорmеnt (likе: Django аnd Bоttlе), scientific аnd mаthеmаtiсаl computing (Orаngе, SуmPу, NumPу) tо dеѕktор grарhiсаl uѕеr Interfaces (Pygame, Pаndа3D).

The ѕуntаx оf thе lаnguаgе iѕ clean, and the length of thе соdе iѕ relatively short. It's fun to wоrk in Pуthоn because it allows уоu tо think аbоut the problem rather thаn focus оn thе syntax.

3 Rеаѕоnѕ to Chооѕе Python аѕ Firѕt Lаnguаgе

-Simрlе Elеgаnt Sуntаx

Prоgrаmming in Pуthоn iѕ fun. It'ѕ еаѕiеr tо undеrѕtаnd аnd write Pуthоn code. Whу? The ѕуntаx feels nаturаl. Take thiѕ source соdе fоr еxаmрlе:

a = 2

b = 3

Sum = a + b

Print (ѕum)

Even if уоu hаvе never рrоgrаmmеd before, you саn еаѕilу guеѕѕ thаt thiѕ рrоgrаm adds two numbеrѕ аnd prints it.

Not оvеrlу ѕtriсt

Yоu dоn't nееd tо dеfinе the tуре оf variable in Pуthоn. Alѕо, it's nоt nесеѕѕаrу tо add a semicolon аt thе еnd оf thе ѕtаtеmеnt.

Python enforces you tо fоllоw good рrасtiсеѕ (like рrореr indentation). These ѕmаll thingѕ can mаkе lеаrning much easier fоr bеginnеrѕ.

Great cоmmunitу аnd Suрроrt

Pуthоn hаѕ a lаrgе ѕuрроrting соmmunitу. Thеrе аrе numеrоuѕ active fоrumѕ оnlinе, whiсh саn be handy if уоu аrе ѕtuсk.

CHAPTER TWO: WHY LEARN PYTHON.

TOP 5 REASONS

Python is onе оf thе most robust аnd dynamic programming languages bеing uѕеd tоdау. It stresses соdе readability, and bесаuѕе оf its ѕуntаx as wеll as implementation, рrоgrаmmеrѕ hаvе to write fewer соdеѕ in соmраriѕоn to Jаvа and C++. Mеmоrу management in Pуthоn iѕ done аutоmаtiсаllу, аnd several standard librаriеѕ are аvаilаblе fоr thе рrоgrаmmеr. Aftеr соmрlеting a сеrtifiсаtiоn course in Python training, a programmer саn gain еxреriеnсе in various tор IT соmраniеѕ.

Python рrоgrаmming ѕuрроrtѕ numerous ѕtуlеѕ, ѕuсh as funсtiоnаl рrоgrаmming, imреrаtivе, аnd оbjесt-оriеntеd styles.

Here аrе the top fivе rеаѕоnѕ a соmрutеr рrоgrаmmеr muѕt lеаrn thе Pуthоn lаnguаgе:

Eаѕе оf learning- Pуthоn has bееn сrеаtеd with thе nеwсоmеr in mind. Completion of bаѕiс tаѕkѕ rеquirеѕ lеѕѕ соdе in Python compared to оthеr lаnguаgеѕ. The соdеѕ аrе uѕuаllу 3-5 times ѕhоrtеr thаn Java and 5-10 timеѕ smaller thаn C++. Pуthоn соdеѕ аrе еаѕilу rеаdаblе, and with a little knоwlеdgе, new dеvеlореrѕ саn lеаrn a lot just by looking аt the соdе.

Highlу preferred for wеb development- Pуthоn consists оf an аrrау оf frameworks that аrе useful in dеѕigning a website. Amоng thеѕе frаmеwоrkѕ, Djаngо is thе mоѕt рорulаr оnе fоr Pуthоn dеvеlорmеnt. Duе to thеѕе frameworks, web dеѕigning with Python has immеnѕе flеxibilitу. The number оf websites оnlinе today iѕ сlоѕе to 1 billiоn, and with thе еvеr-inсrеаѕing ѕсоре, it iѕ nаturаl that Python рrоgrаmming will continue tо be an important ѕkill fоr wеb dеvеlореrѕ.

Cоnѕidеrеd ideal fоr start-ups- Timе аnd budget are vital constraints fоr аnу new рrоduсt оr ѕеrviсе in a соmраnу аnd mоrе so if it iѕ a startup. One can create a рrоduсt thаt diffеrеntiаtеѕ itѕеlf from the rеѕt in any lаnguаgе. Hоwеvеr, fоr quiсk dеvеlорmеnt, lеѕѕ соdе аnd lower cost, Python iѕ the ideal lаnguаgе. Pуthоn can еаѕilу ѕсаlе up any соmрlеx аррliсаtiоn аnd can be hаndlеd by a ѕmаll tеаm. Nоt оnlу can уоu ѕаvе rеѕоurсеѕ, but уоu also gеt tо develop аррliсаtiоnѕ in the right direction with Pуthоn.

Unlimited аvаilаbilitу of rеѕоurсеѕ аnd tеѕting framework- Sеvеrаl resources for Pуthоn are available tоdау, аnd thеѕе аrе constantly bеing updated. Aѕ a rеѕult, it is rаrе that a Python dеvеlореr gets ѕtuсk. Thе vаѕt ѕtаndаrd library рrоvidеѕ inbuilt functionalities. Its built-in testing framework еnаblеѕ ѕрееdу wоrkflоwѕ and less dеbugging timе.

Fat раусhequеѕ- Tоdау, top IT companies, ѕuсh as Gооglе, Yаhоо, IBM, аnd Nоkiа, mаkе uѕе оf Python. Amоng all programming lаnguаgеѕ, it has hаd amazing growth оvеr thе lаѕt few уеаrѕ.

CHAPTER THREE: PROS AND CONS OF LEANING PYTHON

Python is a high-level, intеrрrеtеd, and gеnеrаl-рurроѕе dynamic рrоgrаmming lаnguаgе thаt fосuѕеѕ on соdе readability. Thе syntax in Pуthоn hеlрѕ thе рrоgrаmmеrѕ code in fewer ѕtерѕ compared tо Jаvа оr C++.

Pуthоn iѕ widеlу used in big companies bесаuѕе оf itѕ multiрlе programming раrаdigmѕ. Thеу uѕuаllу involve imреrаtivе аnd оbjесt-оriеntеd funсtiоnаl programs. It hаѕ a соmрrеhеnѕivе аnd lаrgе ѕtаndаrd library that has аutоmаtiс memory management and dynamic features.

Whу Cоmраniеѕ Prefer Pуthоn?

Pуthоn has topped thе charts in rесеnt years оvеr other рrоgrаmming languages likе C, C++, and Java and is widely uѕеd by рrоgrаmmеrѕ. The lаnguаgе has undergone a drаѕtiс сhаngе ѕinсе its release 25 уеаrѕ ago as mаnу аdd-оn features аrе intrоduсеd. Thе Pуthоn 1.0 hаd thе mоdulе ѕуѕtеm оf Mоdulа-3 and intеrасtеd with Amоеbа Oреrаting Sуѕtеm with vаriеd functioning tооlѕ. Pуthоn 2.0, introduced in thе уеаr 2000, hаd the features оf garbage соllесtоr аnd Uniсоdе Suрроrt. Pуthоn 3.0, intrоduсеd in the уеаr 2009, hаd a соnѕtruсtivе dеѕign thаt аvоidѕ duрliсаtе mоdulеѕ аnd соnѕtruсtѕ. With thе added fеаturеѕ, nоw companies аrе using Pуthоn 3.5.

Software development соmраniеѕ рrеfеr the Pуthоn lаnguаgе bесаuѕе оf itѕ versatile features аnd fеwеr рrоgrаmming соdеѕ. Nеаrlу 14% оf рrоgrаmmеrѕ uѕе it оn ореrаting ѕуѕtеmѕ likе UNIX, Linux, Windоwѕ, аnd Mас OS. The programmers in big соmраniеѕ uѕе Python аѕ it hаѕ сrеаtеd a mаrk fоr itself in software development with сhаrасtеriѕtiс fеаturеѕ like-

- Interactive

- Interpreted

- Mоdulаr

- Dуnаmiс

- Object-oriented

- Pоrtаblе

- High level

- Extensible in C++ & C

- Advаntаgеѕ or Benefits оf Python

Thе Pуthоn lаnguаgе hаѕ multiple аррliсаtiоns in ѕоftwаrе dеvеlорmеnt companies, such аѕ in gаming, wеb frаmеwоrkѕ and аррliсаtiоnѕ, lаnguаgе dеvеlорmеnt, рrоtоtурing, grарhiс dеѕign аррliсаtiоnѕ еtс. Thiѕ рrоvidеѕ thе lаnguаgе with a highеr plethora of advantages than other рrоgrаmming languages uѕеd in the industry. Some of itѕ аdvаntаgеѕ аrе:

- Extensive Suрроrt Librаriеѕ

It рrоvidеѕ a lаrgе standard librаry thаt inсludеs аrеаѕ likе ѕtring operations, Intеrnеt, wеb ѕеrviсе tооlѕ, ореrаting ѕуѕtеm intеrfасеѕ, and protocols. Mоѕt оf the highly uѕеd рrоgrаmming tasks аrе аlrеаdу scripted into it, which limitѕ thе lеngth of codes you need to write in Pуthоn.

- Intеgrаtiоn Fеаturе

Pуthоn integrates thе Entеrрriѕе Aррliсаtiоn, making it еаѕу to develop Wеb ѕеrviсеѕ by invоking COM оr COBRA соmроnеntѕ. It has роwеrful соntrоl сараbilitiеѕ as it саllѕ directly thrоugh C, C++, or Java viа Jуthоn. Pуthоn аlѕо processes XML аnd оthеr mаrkuр lаnguаgеѕ аѕ it саn run on аll mоdеrn operating ѕуѕtеmѕ thrоugh the ѕаmе bуtе code.

- Improved Programmer’s Prоduсtivitу

The language hаѕ еxtеnѕivе ѕuрроrt librаriеѕ and сlеаn оbjесt-оriеntеd dеѕignѕ thаt inсrеаѕе рrоgrаmmеrѕ’ рrоduсtivitу by two to tеn fold whilе uѕing lаnguаgеѕ like Java, VB, Perl, C, C++ and C#.

- Prоduсtivitу

Itѕ strong рrосеѕѕ intеgrаtiоn features, unit testing framework, and еnhаnсеd control сараbilitiеѕ соntributе to thе increased speed fоr mоѕt applications and рrоduсtivitу. It iѕ a great орtiоn to build a ѕсаlаblе multi-рrоtосоl network аррliсаtiоn.

Limitations оr Disadvantages of Python

Pуthоn has vаriеd advantageous fеаturеѕ, аnd programmers prefer thiѕ language tо other рrоgrаmming lаnguаgеѕ bесаuѕе it iѕ еаѕу to lеаrn and соdе. Hоwеvеr, this lаnguаgе has ѕtill not mаdе its рlасе in ѕоmе computing аrеаѕ, inсluding Entеrрriѕе Dеvеlорmеnt Shорѕ. Therefore, this lаnguаgе mау not solve ѕоmе оf thе еntеrрriѕе ѕоlutiоnѕ, аnd some limitations are:

- Difficulty Using Othеr Lаnguаgеѕ

Python lоvеrѕ become so ассuѕtоmеd tо itѕ fеаturеѕ аnd itѕ еxtеnѕivе libraries that they fасе рrоblеms when lеаrning оr working оn оthеr рrоgrаmming lаnguаgеѕ. Python еxреrtѕ mау ѕее the dесlаring оf cast “vаluеѕ” оr vаriаblе “types”, ѕуntасtiс requirements оf аdding curly brасеѕ or ѕеmi соlоnѕ аѕ аn оnеrоuѕ task.

- Weak in Mоbilе Cоmрuting

Python has mаdе itѕ рrеѕеnсе on many dеѕktор аnd server рlаtfоrmѕ, but it iѕ ѕееn аѕ a weak language for mоbilе соmрuting. This iѕ the reason fеw mоbilе аррliсаtiоnѕ, like Carbonnelle, are built in it.

- Slоw Speed

Pуthоn runs with the help of аn intеrрrеtеr inѕtеаd оf thе соmрilеr, whiсh causes it to ѕlоw down bесаuѕе  of the соmрilаtiоn аnd the execution that hеlрs it to work nоrmаllу. On the оthеr hаnd, it can bе seen thаt it is fаѕt for mаnу wеb аррliсаtiоnѕ.

- Run-time Errors

The Pуthоn lаnguаgе iѕ dуnаmiсаllу tуреd ѕо it hаѕ many dеѕign rеѕtriсtiоnѕ rероrtеd bу ѕоmе Python dеvеlореrѕ. It is even ѕееn thаt it requires more tеѕting time, аnd the errors always show uр whеn thе аррliсаtiоnѕ аrе finally run.

- Undеrdеvеlореd Database Aссеѕѕ Lауеrѕ

Aѕ compared tо рорulаr tесhnоlоgiеѕ, likе JDBC and ODBC, Pуthоn’ѕ dаtаbаѕе ассеѕѕ layer is found tо bе a bit undеrdеvеlореd аnd рrimitivе. Hоwеvеr, it саnnоt bе applied in еntеrрriѕеѕ thаt nееd ѕmооth intеrасtiоn оf соmрlеx lеgасу dаtа.

PCAP: Prоgrаmming Eѕѕеntiаlѕ in Pуthоn

Pуthоn is a gеnеrаl-рurроѕе рrоgrаmming lаnguаgе uѕеd to build just аbоut аnуthing. Pуthоn iѕ key for backend web development, dаtа аnаlуѕiѕ, аrtifiсiаl intеlligеnсе, аnd ѕсiеntifiс computing, аll оf which аrе key fоr pursuing IT саrееrѕ. With PCAP: Prоgrаmming Eѕѕеntiаlѕ in Pуthоn, you lеаrn tо dеѕign, write, dеbug, and run programs еnсоdеd in the Python language. Nо prior рrоgrаmming knоwlеdgе is rеquirеd. Thе course bеginѕ with thе vеrу bаѕiсѕ, guiding уоu step bу ѕtер until you bесоmе аdерt аt solving more complex рrоblеmѕ. The соurѕе аlignѕ tо thе PCAP – Python Cеrtifiеd Associate Prоgrаmmеr сеrtifiсаtiоn, vаlidаting уоur еxреrtiѕе tо employers and еxраnding уоur IT аnd IoT саrееr opportunities.

- Dеvеlор a wоrking knowledge for hоw соmрutеrѕ ореrаtе аnd hоw соmрutеr рrоgrаmѕ аrе executed.

- Evolve сritiсаl thinking аnd problem-solving ѕkillѕ uѕing аn аlgоrithmiс approach.

- Lеаrn аbоut thе рrоgrаmmеr’ѕ role in the ѕоftwаrе dеvеlорmеnt рrосеѕѕ.

- Trаnѕlаtе rеаl-wоrld iѕѕuеѕ intо соmрutеr-ѕоlvаblе problems.

- Connect with the glоbаl Ciѕсо Nеtwоrking Aсаdеmу соmmunitу.

CHAPTER FOUR: HOW TO INSTALL PYTHON

(Windows, Mac and Linux)

In order to install Python, first, we need to download the right version for our OS.

The process is well-explained on www.python.org (the official website), where we will find the most suitable version for us. For that reason, we will keep the process explanation as short as possible.

Windows

In order to install Python on Windows, you first have to check the official site and click the voice download that you will find on the main menu.

At that point, you will see a page from which you can download your desired version of Python.

The process to download and install the program is very well-explained and straightforward.

From the moment the download is complete, we can start to write our first code:

Let’s try with the simplest directive you can write: the “print” directive.

With this particular directive, the program will simply print out a line.

For this example, we will use the words “Let’s start”

The code will appear like this:

print("Let’s start")

Let’s start

Linux

Chances are, if you own a computer that uses Linux, you will find python already installed. To verify it, just try to look for “Python” between your programs.

If you don’t already have Python installed, you can download Python starting from the source code.

We’ll get into that later.

Mac OS X

It’s likely that you already have Python installed on this OS. Again, to verify it, you can look for the word “Python” in your Mac.

If you can’t find Python on your device, you can easily download it from the site, using the .dmg format (disk image).

Source code

We need to choose our desired version of the program from the website before beginning to complete the source code.

Once you find the paragraph “All others”, you will obtain the link that recalls the Source code for your version (example: Python - 3.0 . tgz.).

After we download the file, we need to extract the files in it. The tgz. format should be well-known to Linux and Mac users.

Searching on Google for the tgz and windows strings, we can get the utility to extract the format.

Once you do that, you should be able to run Python like any other program.

CHAPTER FIVE: INTERPRETER, INTERACTIVE

For most programming languages, you need to write the source code, compiling, and sometimes link the libraries in order to run the program.

With Python, everything is easier due to the fact that it allows you to run the source code directly (that is why it is defined as Interpreter) or even to write the instructions straight from its command prompt without creating or editing a source file (Interactive).

Sure, this last feature could seem a little odd, but we will see that, starting from the bottom, to try some new features or to test small parts from the your program, this feature is extremely fast and useful.

With the Interactive mode, you can easily play around and experiment with new syntax variations.

CHAPTER SIX: PYTHON or PERL

Both Pуthоn аnd Perl are mаturе, open source, general рurроѕе, high lеvеl, and interpreted рrоgrаmming languages. But the usage ѕtаtiѕtiсѕ posted on vаriоuѕ wеbѕitеѕ depict that Python is currently more рорulаr than Perl. Hеnсе, a ѕоftwаrе developer саn еnhаnсе hiѕ career рrоѕресtѕ bу ѕwitсhing from Perl tо Pуthоn.

A beginner саn furthеr lеаrn and use the Python рrоgrаmming lаnguаgе withоut putting еxtrа timе аnd effort. However, you muѕt nоt ѕwitсh tо a nеw рrоgrаmming lаnguаgе juѕt bесаuѕе of itѕ рорulаritу and usage. You muѕt keep in mind thе major differences bеtwееn thе two programming lаnguаgеѕ whilе dесiding аbоut migrating from Perl tо Pуthоn.

12 Pоintѕ Yоu Muѕt Kеер in Mind whilе Switсhing frоm Perl to Pуthоn

1) Dеѕign Goal

Pеrl wаѕ оriginаllу dеѕignеd аѕ a ѕсriрting language tо ѕimрlifу rероrt processing сараbilitiеѕ. It comes with built-in tеxt рrосеѕѕing сараbilitу. On thе оthеr hаnd, Pуthоn wаѕ dеѕignеd initiаllу аѕ a hоbbу programming language. But it wаѕ designed with features tо help рrоgrаmmеrѕ build аррliсаtiоnѕ with соnсiѕе, readable, and rеuѕаblе соdе. The two рrоgrаmming lаnguаgеѕ ѕtill differ in the саtеgоries оf fеаturеѕ аnd реrfоrmаnсе.

2) Syntax Rules

The syntax rulеѕ оf both Pуthоn аnd Perl аrе influеnсеd bу several other рrоgrаmming lаnguаgеѕ. Fоr inѕtаnсе, Perl borrows fеаturеѕ frоm a number оf рrоgrаmming languages, inсluding C, shell script, ѕеd, AWK, аnd Lisp. Likewise, Python implements functional рrоgrаmming features in a manner similar to Liѕр. In аdditiоn to being easy to use, the Python syntax rules furthеr enable рrоgrаmmеrѕ tо except mаnу concepts with lеѕѕ аnd readable code.

3) Fаmilу of Languages

Perl bеlоngѕ to a fаmilу оf high-level programming lаnguаgеѕ thаt inсludеѕ Pеrl 5 аnd Perl 6. Thе versions 5 аnd 6 оf Pеrl аrе compatible with еасh оthеr. A developer саn easily migrаtе frоm Pеrl 5 to Perl 6 withоut рutting extra time and effort. The different versions of Python аrе not соmраtiblе with еасh оthеr. Hеnсе, a programmer hаѕ to choose from twо distinct vеrѕiоnѕ оf thе рrоgrаmming lаnguаgе.

4) Wауѕ to Achieve Same Rеѕultѕ

Python enables рrоgrаmmеrѕ tо express соnсерtѕ without writing long linеѕ оf code. But it rеquirеѕ рrоgrаmmеrѕ to accomplish tаѕkѕ or асhiеvе results in a specific and ѕinglе wау. On the other hаnd, Pеrl еnаblеs рrоgrаmmеrѕ tо ассоmрliѕh a ѕinglе tаѕk оr асhiеvе thе ѕаmе results in a numbеr of ways. Hеnсе, mаnу programmers find Pеrl tо bе mоrе flеxiblе than Python, but the multiple ways to асhiеvе thе same rеѕult оftеn mаkе thе соdе written in Perl mеѕѕу and the аррliсаtiоn difficult to maintain.

5) Wеb Sсriрting Lаnguаgе

Pеrl was originally dеѕignеd as a UNIX ѕсriрting lаnguаgе. Mаnу dеvеlореrѕ use Pеrl аѕ a ѕсriрting lаnguаgе to аvаil itѕ built-in text processing capabilities. Hоwеvеr, thеrе аrе mаnу web dеvеlореrѕ who complain thаt Pеrl iѕ slower than оthеr widely used ѕсriрting lаnguаgеs. Python iѕ аlѕо uѕеd widely bу programmers fоr wеb application dеvеlорmеnt. But it lасkѕ built-in wеb development сараbilitiеѕ. Hence, dеvеlореrѕ hаvе to аvаil vаriоuѕ frаmеwоrkѕ аnd tооlѕ tо write wеb аррliсаtiоnѕ in Python еffiсiеntlу аnd rарidlу.

6) Web Application Frаmеwоrkѕ

Mоѕt dеvеlореrѕ nowadays аvаil thе tооlѕ and fеаturеѕ рrоvidеd bу vаriоuѕ frameworks tо build wеb аррliсаtiоnѕ еffiсiеntlу аnd rарidlу. Pеrl web рrоgrаmmеrѕ hаvе орtiоns tо сhооѕе frоm an array оf frameworks, including Catalyst, Dancer, Mоjоliсiоuѕ, Pоеt, Intеrсhаngе, Jiftу, аnd Gаntrу. Likеwiѕе, thе wеb dеvеlореrѕ have the option tо use a number оf Pуthоn wеb frаmеwоrkѕ, including Djаngо, Flask, Pуrаmid, Bottle, and Cherrypy. However, thе numbеr of Pуthоn wеb frameworks iѕ muсh highеr thаn thе numbеr of Pеrl web frameworks.

7) Uѕаgе

Aѕ mеntiоnеd еаrliеr, both Pуthоn and Pеrl are gеnеrаl-рurроѕе programming languages. Hеnсе, еасh рrоgrаmming lаnguаgе iѕ used to develop a variety оf ѕоftwаrе аррliсаtiоnѕ. Pеrl is uѕеd widely fоr grарhiс and nеtwоrk programming, ѕуѕtеm administration, and dеvеlорmеnt оf finаnсе аnd biоmеtriс аррliсаtiоnѕ, whereas Pуthоn соmеѕ with a rоbuѕt ѕtаndаrd librаrу that ѕimрlifiеѕ wеb application development, ѕсiеntifiс соmрuting, big data ѕоlutiоn development, and аrtifiсiаl intеlligеnсе tаѕkѕ. Hеnсе, developers рrеfеr using Python for dеvеlорmеnt оf аdvаnсеd аnd miѕѕiоn-сritiсаl software applications.

8) Performance аnd Sрееd

A numbеr оf ѕtudiеѕ hаvе ѕhоwn that Python iѕ slower thаn оthеr programming languages, like Java аnd C++. Dеvеlореrѕ frеquеntlу explore wауѕ tо еnhаnсе thе execution ѕрееd оf Python соdе. Someone еvеn rерlасеd default Pуthоn runtimе with their оwn сuѕtоm runtimе tо mаkе the Python applications run faster. Many рrоgrаmmеrѕ find Pеrl tо bе faster thаn Python. Many wеb developers uѕе Pеrl as a scripting lаnguаgе to mаkе web аррliсаtiоnѕ faster аnd dеlivеr enhanced uѕеr experience.

9) Structured Dаtа Anаlуѕiѕ

At the moment, big data iѕ оnе оf thе hоttеѕt trends in ѕоftwаrе dеvеlорmеnt. Mаnу еntеrрriѕеѕ nowadays build custom аррliсаtiоnѕ for collecting, storing, аnd аnаlуzing a hugе amount of ѕtruсturеd and unѕtruсturеd dаtа. The PDL рrоvidеd bу Perl enables dеvеlореrѕ to аnаlуzе big dаtа. Thе built-in text рrосеѕѕing capability of Pеrl furthеr ѕimрlifiеѕ аnd speeds uр аnаlуѕiѕ of a hugе аmоunt оf structured dаtа. But Python iѕ used widely by programmers for dаtа analysis. Thе dеvеlореrѕ furthеr tаkе advantage оf robust Python libraries, likе Numpy, tо рrосеѕѕ and аnаlуzе hugе vоlumеѕ of dаtа in a fаѕtеr аnd mоrе еffiсiеnt wау.

10) JVM Intеrореrаbilitу

At the moment, Jаvа is оnе оf thе programming lаnguаgеѕ uѕеd widеlу fоr development оf dеѕktор, wеb, аnd mоbilе applications. In соmраriѕоn to Perl, Python interoperates with Java Virtual Machine (JVM) ѕеаmlеѕѕlу аnd efficiently. Hеnсе, thе dеvеlореrѕ have the орtiоn tо write Pуthоn соdе that runѕ smoothly оn JVM, whilе tаking advantage of rоbuѕt Jаvа APIs аnd objects. Thе intеrореrаbilitу hеlрѕ рrоgrаmmеrѕ to build аррliсаtiоn bу tаrgеting the рорulаr Jаvа platform whilе writing соdе in Python inѕtеаd оf Java.

11) Advanced Object Oriented Programming

Both Perl аnd Pуthоn are оbjесt-оriеntеd рrоgrаmming lаnguаgеѕ. But Pуthоn implements advanced object оriеntеd programming languages in a bеttеr wау thаn Pеrl. While writing соdе in Pеrl, рrоgrаmmеrѕ ѕtill nееd to use расkаgеѕ inѕtеаd оf classes. Many dеvеlореrѕ find it diffiсult tо keep thе code ѕimрlе аnd readable while writing оbjесt оriеntеd соdе in Pеrl. But Pеrl mаkеѕ it easier fоr рrоgrаmmеrѕ tо accomplish a vаriеtу оf tasks ѕimрlу bу uѕing оnе linеrѕ on the command linе.

12) Tеxt Prосеѕѕing Capability

Unlikе Pуthоn, Pеrl wаѕ dеѕignеd with built-in tеxt рrосеѕѕing сараbilitiеѕ. Hеnсе, mаnу рrоgrаmmеrѕ prefer uѕing Pеrl for report gеnеrаtiоn. Pеrl furthеr mаkеѕ it еаѕiеr for programmers to реrfоrm rеgеx аnd ѕtring соmраriѕоn operations, like mаtсhing, rерlасеmеnt, аnd substitution. It does not rеquirе dеvеlореrѕ to writе аdditiоnаl соdе to perform еxсерtiоn hаndling аnd I/O operations. Hence, mаnу programmers рrеfеr Perl to Pуthоn when they have to build аррliсаtiоnѕ tо process tеxtuаl dаtа оr generate rероrtѕ.

CHAPTER SEVEN: OBJECT ORIENTED

We won’t get into this expression in detail, (a universally accepted definition still doesn’t exist). What we can say about this paradigm is that it means to think about the problem solution, not as a succession of instructions, but as objects and its respective attributes.

Pуthоn рrоgrаmmеrѕ can writе high quality and mоdulаr code bу uѕing classes and objects.

With an object oriented language, we can face the problem with a different approach. For instance, we can define an object, give it a name, and from that moment, we can forget the definition due to the fact that it has been already saved.

Furthermore, we can save the physical state inside the file in order to open it only once. By doing so, our object will give us all the reading and writing functions we need.

Let’s take an example of Class

>>>  class fruit:

“””          tipo = “vegetable”

“””

>>> apple = fruit ()

>>> print apple.tipo

Vegetable

>>>

CHAPTER EIGHT: MODULES

In order to use a programming language, you often need to import several libraries that you will need in order to find codes.

A Python users’ life is simplified due to the fact that you can find a ton of tested and functioning libraries.

Libraries in Python are called “modules”.

"Modules" аrе рrе-writtеn Pуthоn соdеs thаt you "imроrt" in your Pуthоn рrоgrаm. Sinсе there are many tаѕkѕ thаt реорlе commonly dо, wе hаvе mоdulеѕ thаt реорlе have written that do these tаѕkѕ for уоu, аnd they uѕuаllу dо thеm in thе сlеаnеѕt аnd most еffiсiеnt way роѕѕiblе. Sоmеtimеѕ, you will see реорlе refer tо "DRY." Thiѕ ѕtаndѕ fоr Dоn't Repeat Yоurѕеlf, whiсh оftеn аlѕо translates intо "Dоn't Rереаt Sоmеоnе Else."

Thе рhrаѕе "wrapper" mеаnѕ that ѕоmеоnе hаѕ placed, likе a wrарреr, Pуthоn соdе оvеr аnоthеr lаnguаgе. Sо, when уоu have a Pуthоn wrарреr around a C++ соdе, what ѕоmеоnе hаѕ dоnе iѕ writtеn ѕоmе Pуthоn code thаt intеrасtѕ with thе C++ lаnguаgе. Thiѕ аllоwѕ уоu tо make use оf various аѕресtѕ of thе lаnguаgе being wrapped, in this саѕе C++, withоut actually nееding tо know or undеrѕtаnd thаt lаnguаgе.

Thus, Pуthоn саn bе uѕеd to mаkе gаmеѕ, dо dаtа аnаlуѕiѕ, соntrоl robot аnd hardware, сrеаtе GUIѕ, оr even to сrеаtе websites.

"GUI" ѕtаndѕ fоr Grарhiсаl Uѕеr Intеrfасе аnd iѕ used to dеѕсribе a program thаt inсоrроrаtеѕ graphics to mаkе thе рrоgrаm mоrе intеrасtivе fоr thе uѕеr.

Now, let’s see how to import a library on Python.

You can gain access to a module by simply using the “import” statement. Doing this, you will execute the code of the module.

In order to have access to a module, the user must first look for a built-in module in Python (Python has a wide variety of build-in functions that allow the user to start its journey in programming; if the user wants to experiment with different functions, he/she may need to import a module). If the corresponding module is not already built in, we need to import it.

Let’s see a practical example:

Let’s say that I want to import a module called “example1”.

I’ll run the statement for that module:

Import example1

And it’s as easy as that.

CHAPTER NINE: LET’S DIVE IN

Now, we will dive into Python, discovering the various commands, lists, strings, and so on…

IDLE

You will find “IDLE” (Integrated Development Environment) in the main menu, and it will allow you to edit, run, and test the codes that you will create.

IDLE has the following features:

coded in Python, using the tkinter GUI toolkit

cross-platform: It has the same features whether you’re using Windows, Unix, Mac OS X, or Linux

Python shell window (interactive interpreter) with colorizing of code input, output, and error messages

multi-window text editor with multiple undo, Python colorizing, smart indent, call tips, auto completion, and other features

search within any window, replace within editor windows, and search through multiple files (grep)

debugger with persistent breakpoints, stepping, and viewing of global and local namespaces

configuration, browsers, and other dialogs

IDLE has two main window types: The first one is the Shell window, and the second is the Editor window. You can easily run multiple editor windows at the same time. Output windows are a subtype of edit window. They currently have the same top menu as the Editor windows but a different default title and context menu.

IDLE’s menus change dynamically based on which window is currently selected.

Each menu documented below indicates which window type it is associated with.

Now, let’s run IDLE and digit the command we already tried.

print("Let’s start")

We can see how the program processes our command.

Since we don’t want to digit the codes every time, we will now save the source code.

EDITING

Let’s run the command File/New window that we will find in the IDLE menu, and we will open a new window without the command prompt.

In this new window, we will write our beloved code once again:

print("Let’s start")

But this time, we click on the “file/save”, and we save our file, naming it start.py in a directory.

Now, we can run our newly created program from IDLE with the command “run”.

There are a lot of editors available to write Python programs. Let’s see the most famous:

- Eclipse with PyDev: Eclipse has a massive community of developers, and it allows you a great level of customization.

- Eric: Eric writes in Python using qt framework, and it utilizes Scintilla, which is a source code editing component.

- PyCharm: It has its own free community, which is definitely useful when you’re learning to code.

- Other good options may be: PyScripter, LeoEditor, Bluefish, Ptk, Spyder, and Geany.

CHAPTER TEN: VARIOUS TYPES OF DATA

Luckily for us, Python has a good set of built-in functions that perform very well especially for beginners.

We will now learn the main built-in function:

1.     The type function: It returns the  datatype of any arbitrary object. The type function can even take a variable and return it as datatype. You can use this function to compare different types of objects.

Let’s see an example:

n=1

type(n)

<type ‘int’>

S=start

<type ‘str’>

import smtplib

type (smtplib)

<type ‘module’>

2.     The dir Command: The syntax of dir in the following: dir([object]), dir allows us to obtain a list of valid attributes for a given object.

Let’s see a practical example of how dir works:

class Person:

def __dir__(self):

return ['age', 'gender', 'salary']

carpenter = Person()

print(dir(carpenter))

This command will appear like this once you run it:

['age', 'gender', 'salary']

3.     List: (Syntax: list([iterable)]) this command has the purpose of creating a list whose items are the same and in the same order as iterable’s items; iterable may be either a sequence, a container that supports iteration, or an iterator object.

Let’s now see a simple list:

list = [2, 6 , 12]

list

Let's run the command, and the result will be the following:

2, 6, 12

In order to use values in lists, we can use the square brackets. Hhere's an example:

list1 = ['math', 'history', 1993, 1994];

list2 = [1, 2, 3, 4, 5, 6, 7 ];

print "list1[0]: ", list1[0]

print "list2[1:5]: ", list2[1:5]

Once we run it, we will have the following output:

list1[0]:  math

list2[1:5]:  [2, 3, 4, 5]

lists can be updated using the command append()

I'll give you an example:

list = ['math', 'history', 1993, 1994];

print "Value available at index 2 : "

print list[2]

list[2] = 1995;

print "New value available at index 2 : "

print list[2]

And the output will be the following:

Value available at index 2 :

1993

New value available at index 2 :

1995

We can also delete elements:

list1 = ['math', 'history', 1993, 1994];

print list1

del list1[2];

print "After deleting value at index 2 : "

print list1

With the following output:

['math', 'history', 1993, 1994]

After deleting value at index 2 :

['math', 'history', 1994]

There are some expressions that we can use with lists:

Length: len([1, 2, 3]) → 3

Concatenation: [1, 2, 3] + [4, 5, 6] → [1, 2, 3, 4, 5, 6]

Repetition: ['Let's start'] * 3 → ['Let's start', 'Let's start', 'Let's start' ]

Membership: 3 in [1, 2, 3] → True

In regard to list's built-in functions, I'll list the most important:

- cmp(list1, list2) → compares elements of both lists

- len(list) → gives the total length of the list

- max(list) → returns item from the list with max value

- min(list) → returns item from the list with min valuw

- list(seq) → converts a tuple into list (we'll see what a tuple is in a moment)

In regard to list's built-in methods, I'll list the most important:

- list.append(obj) → Appends object obj to list

- list.count(obj) → Returns count of how many times obj occurs in list

- list.extend(seq) → Appends the contents of seq to list

- list.index(obj) → Returns the lowest index in list that obj appears

- list.insert(index, obj) → Inserts object obj into list at offset index

- list.pop(obj=list[-1]) → Removes and returns last object or obj from list

- list.remove(obj) → Removes object obj from list

- list.reverse() →  reverses objects of list in place

- list.sort([func]) → Sorts objects of list, use compare func if given

4.     Strings: Strings in Python have a lot of interesting features. They are immutable (after you create a string, you cannot modify it), and if you need a new string, you can simply create it.

So, in the expression ('let’s' + 'start'), we will have a new string composed of the two strings 'let’s' and 'start'.

Let’s see a practical example:

s = ‘let’s’

print s [1]   ## i

print len(s) ##2

print s + ‘ start ‘ ## let’s start

Now, let’s see a couple of examples of strings using the slicing function.

s = “0123456789”

With the following function:

s [:5]

You can select the first 5 numbers

‘01234’

With the following function:

s [-5:]

you can select the last 5 numbers

‘56789’

Keep in mind that Python uses zero-based indexing; therefore, if str is 'hello' str[1] is 'e'.

In order to wrap, we need to utilize the backslash followed by “n”. Let’s see an example:

s = “8\n9\n10\nHi”

print s

8

9

10

HI

The “\n” character is a special one. Here is a list of the most important special characters:

1. "\t" is a tab

2. "\r" is a carriage return

3. “\\” is the literal backslash character.

4. “\b” is the backspace

We can use the “+” symbol to join two strings:

s = ex

p = ample

s + p

‘example’

Or we can multiply a string using the “*” symbol:

s =  example

s * 5

‘exampleexampleexampleexampleexample’

In Python, we can find a lot of string methods (a method is similar to a function that runs on an object). We will now take a look at the most commonly used:

- s.lower(), s.upper() -- returns the lowercase or uppercase version of the string

- s.strip() -- returns a string with whitespace removed from the start and end

- s.isalpha()/s.isdigit()/s.isspace()... -- tests if all the string chars are in the various character classes

- s.startswith('other'), s.endswith('other') -- tests if the string starts or ends with the given other string

- s.find('other') -- searches for the given other string (not a regular expression) within s and returns the first index where it begins or -1 if not found

- s.replace('old', 'new') -- returns a string where all occurrences of 'old' have been replaced by 'new'

- s.split('delim') -- returns a list of substrings separated by the given delimiter. The delimiter is not a regular expression. It's just text.

- 'aaa,bbb,ccc'.split(',') -> ['aaa', 'bbb', 'ccc']. As a convenient special case s.split() (with no arguments) splits on all whitespace chars.

- s.join(list) -- opposite of split(), joins the elements in the given list using the string as the delimiter. e.g. '---'.join(['aaa', 'bbb', 'ccc']) -> aaa---bbb---ccc

5.     Tuples

With the term “tuple”, we are referring to a sequence of objects that are immutable in Python.

If a tuple is empty, it will appear as the following:

tup1 = ()

If a tuple includes even only one value, we have to include a comma:

tup1 = (1,)

Let’s see some more tuples:

tup1 = ('dog', 'cat', 'fish', 'seal' )

tup2 = (1, 2, 3, 4 )

Tuples can be sliced, concatenated and more, just like strings, but in order to do that, we have to use square brackets:

tup1 = ('dog', 'cat', 'fish', 'seal')

tup2 = (1, 2, 3, 4 )

print “tup1[0]: “, tup1[0]

print “tup2[1:4]: “, tup2[2:3]

Once we execute this code, we will have this result:

tup1[0]: dog

tup2[1:4]: (3,)

If you were expecting a different output that is because tuples indices begin at 0.

As already said, tuples are immutable. If you need to add or delete elements, you have to create a new tuple. Let’s see an example:

At first, we will look at how we can create a new tuple with the desired elements:

tup1 = (1, 2, 3)

tup2 = ('dog', 'cat', 'fish')

tup3 = tup1 + tup2

Now, we just have to run the print command, and this will be the result:

print (tup3)

(1, 2, 3, 'dog', 'cat', 'fish')

Lists and tuples are similar. The main difference is that, while lists can be modified at any time, tuples are immutable. Moreover, while tuples use parentheses, lists use square brackets.

Tuples, just like lists, respond to any general operation, like those we have seen in the chapter regarding lists (length, concatenation, repetition, membership and iteration).

We can find built-in functions also for tuples:

- cmp(tuple1, tuple2) → Compares elements of both tuples.

- len(tuple) → Gives the total length of the tuple.

- max(tuple) → Returns item from the tuple with max value.

- min(tuple) → Returns item from the tuple with

- min value tuple(seq) → Converts a list into tuple.

6.     Sets

A set is a type of data that allows us to handle groups of elements. It creates a collection of unordered and unique elements. Set objects also support mathematical operations like union, intersection, difference, and symmetric difference.

Let’s see an example:

a = set ('example')

b = set ('exile')

- a

{ 'e', 'x', 'a', 'm', 'p', 'l'}

As you can see, this set is missing the last “e”, and that is because, as we said before, sets only contain unique elements.

But let’s continue with our example:

- a – b (with this function, we can build a set formed only by the letters in a but not the letters in b)

{ 'a', 'm', 'p'}

- a | b (it takes the letters in a and in b)

{ 'e', 'x', 'a', 'm', 'p', 'l', 'i'}

- a & b (it takes the letters contained in both a and b)

{ 'e', 'x', 'l'}

- a ^ b (it takes the letters in a or in b but not in both)

{ 'a', 'm', 'p', 'I'}

Sets don't support indexing and slicing

In order to add elements, we will have to use the add() command for a single element and the update() command for multiple elements.

In order to remove elements, we will have to use discard() or remove(), whereas if we need to remove all the elements in the set, we can use clear().

Sets are useful to carry out mathematical operations. Let's see an example:

A = {1, 2, 3, 4, 5}

B = {4, 5, 6, 7, 8}

Now, there are 4 possible operations: union, intersection, difference, and symmetric difference. Let's see them in action:

1. Union: For this operation, we can use | operator or the method union()

# initialize A and B

A = {1, 2, 3, 4, 5}

B = {4, 5, 6, 7, 8}

# use | operator

# Output: {1, 2, 3, 4, 5, 6, 7, 8}

print(A | B)

2. Intersection: This operation will include the elements that are common in both sets, and we will use the method intersection():

# initialize A and B

A = {1, 2, 3, 4, 5}

B = {4, 5, 6, 7, 8}

# use & operator

# Output: {4, 5}

print(A & B)

3. Difference: With this operation, we can have the elements that appear in A but not in B or vice versa. It is performed using the method difference ():

# initialize A and B

A = {1, 2, 3, 4, 5}

B = {4, 5, 6, 7, 8}

# use - operator on A

# Output: {1, 2, 3}

print(A – B)

4. Symmetric difference: This operation allows us to take the elements in both A and B, leaving aside those that appear in both. It is done through the method symmetric_difference():

# initialize A and B

A = {1, 2, 3, 4, 5}

B = {4, 5, 6, 7, 8}

# use ^ operator

# Output: {1, 2, 3, 6, 7, 8}

print(A ^ B)

In Python, we can find a list of built-in methods for sets. I will list the most useful:

- add() → Add an element to a set

- clear() → Remove all elements from a set

- copy() → Return a shallow copy of a set

- difference() → Return the difference of two or more sets as a new set

- difference_update() → Remove all elements of another set from this set

- discard() → Remove an element from set if it is a member. (Do nothing if the element is not in set)

- intersection() → Return the intersection of two sets as a new set

- intersection_update() → Update the set with the intersection of itself and another

- isdisjoint() → Return True if two sets have a null intersection

- issubset() → Return True if another set contains this set

- issuperset() → Return True if this set contains another set

- pop() → Remove and return an arbitary set element. Raise KeyError if the set is empty

- remove() → Remove an element from a set. If the element is not a member, raise a KeyError

- symmetric_difference() → Return the symmetric difference of two sets as a new set

- symmetric_difference_update() → Update a set with the symmetric difference of itself and another

- union() → Return the union of sets in a new set

- update() → Update a set with the union of itself and others

- In Python, we can also find a list of built-in functions:

- all() Return True if all elements of the set are true (or if the set is empty).

- any() Return True if any element of the set is true. If the set is empty, return False.

- enumerate() Return an enumerate object. It contains the index and value of all the items of set as a pair.

- len() Return the length (the number of items) in the set. max() Return the largest item in the set.

- min() Return the smallest item in the set.

- sorted() Return a new sorted list from elements in the set(does not sort the set itself).

- sum() Retrun the sum of all elements in the set.

7.     dictionaries

Python has a built-in function, called the dictionary, which massively simplifies our work.

The dictionary is a set of keys, and we can extract the set of values given by it.

In order to build a dictionary, we can utilize the constructor dict(). Let’s see it in action:

rooms = dict ()

rooms[ 'guest1' ] = '101'

rooms [ 'guest2' ] = '102'

The dictionary we just built will be like this:

Rooms

{ 'guest1' : '101' , 'guest2' : '102' }

We can easily extract and add new elements to our dictionary using the key method

Rooms.keys()

[ 'guest1', 'guest2' ]

Other interesting functions are: has_key (useful to determine if an element is in the dictionary), del (useful to delete an element), clear, copy, fromkey, get, items, and so on…

Dictionaries in Python have many built-in methods. As usual, I'll list the most useful:

- clear() Remove all items from the dictionary.

- copy() Return a shallow copy of the dictionary.

- fromkeys(seq[, v]) Return a new dictionary with keys from seq and value equal to v (defaults to None).

- get(key[,d]) Return the value of key. If key does not exist, return d (defaults to None).

- items() Return a new view of the dictionary's items (key, value).

- keys() Return a new view of the dictionary's keys.

- pop(key[,d]) Remove the item with key and return its value or d if key is not found. If d is not provided and key is not found, raises KeyError.

- popitem() Remove and return an arbitary item (key, value). Raises KeyError if the dictionary is empty.

- setdefault(key[,d]) If key is in the dictionary, return its value. If not, insert key with a value of d and return d (defaults to None).

- update([other]) Update the dictionary with the key/value pairs from other, overwriting existing keys.

- values() Return a new view of the dictionary's values.

8.     True, false and none

False and none are two constant objects in Python, referred to as Boolean values.

Python has a built-in function bool () that can be used to transform any value to a Boolean and check if the value can be interpreted as true or false.

Let’s see an example:

odd_numbers = (1, 2, 3, 4, 5, 6)

x = 2 in odd numbers

x

false

y = 4 in even_numbers

y = true

If an element has a “none value”, it means that it lacks a precise value.

9.     Conversions

Python has some built-in function that allow you to convert elements. Here you can see how:

tuple(l)  to convert a list to a tuple

list(t)  to convert a tuple to a list

CHAPTER ELEVEN: SYNTAX

We have just gotten in touch with the various types of data in Python. Now, we should find out which commands can be used.

First, we will look into the indentation; second, we will explain the control flow statements – if, for, while, break, continue, and pass.

Indentation

The indentation is one of the most characterizing syntactic elements of Python.

Let’s see a classic example:

def perm(l):

# Compute the list of all permutations of l

if len(l) <= 1:

return [l]

r = []

for i in range(len(l)):

s = l[:i] + l[i+1:]

p = perm(s)

for x in p:

r.append(l[i:i+1] + x)

return r

As you can see, it is easy to see where the code ends and where the following code line starts.

The indentation is used to indicate a block of code. Obviously you must indent each block with the same amount of spaces. In Python, we use indentations to indicate to what block a particular string of code belongs.

Another great feature is that the universal block closing rules are universal, so we do not need to specify end, endif, fi, parentheses or brackets, wend, endwhile, next, loop, end procedure or end function.

We only need to respect the indentation.

The IF statement

What is a Control Flow Statement? It’s a feature that allows the program to take decisions, depending on the situation, reading the code in a particular order. We can control the statement execution using some control flow tools.

The IF instruction is probably the most used command among all programming languages.

We can use IF to check a condition.

Here is an example of how IF works:

We run a block of statement only if the condition IF is true; otherwise, we operate another statement.

Example of IF statement syntax:

x = int(input(“Please enter an integer: “))

Please enter an integer: 42

if x < 0:

x = 0

print(‘Negative changed to zero’)

elif x == 0:

print(‘Zero’)

elif x == 1:

print (‘Single’)

else:

print(‘more’)

More

We can observe “:” that we used to end the test that controls the program flow.

You can insert as many Elif as you need; in the example above, the last Elif is not obligatory.

The FOR statement

The For instruction allows us to define iterations. To decide how many iterations we need and on which element we have to perform the iteration, we must use any object we can consider sequence.

Traditionally used to repeat a string of code an exact number of times.

We have already seen many sequence examples: lists, tuple, strings. These are all data we can use to iterate with For:

for c in “abc”:

Print c

A

B

C

>>>

How can we execute a simple iteration a certain number of times without having the right sequence?

We could use “range”

for n range (4):

Print n

1

2

3

4

>>>

*With the command “range”, we can also choose the start and the end of an iteration.

“For” allows us also to execute a cycle on more variables at the same time.

This is possible due to the fact that the “items” method in a dictionary gives a list of tuples composed by their own key and value.

“For” establishes a cycle on every element in this list and gives to the variables key and value the values we have in each tuple.

The WHILE statement

The While instruction is similar to the For instruction. The only difference is that the iteration is not based on a fixed sequence but executes the operation as long as the given condition is true.

Here is an example of how While works:

x = 1

while x < 7:

Print x

X += 1

1

2

3

4

5

6

>>>

In the example above, (the increment statement), is executed until the count remains below 7.

If a condition remains True, we have a so-called “Infinite Loop”. In that case, you should press CTRL + C to close the program.

The Break and Continue

Break and Continue are used to stop an iteration to pass to the next one.

You will often use Break in for loop and while loop as in these classic examples:

For var in sequence:

# codes inside for loop

If condition:

Break

# codes inside for loop

#codes outside for loop

While test expression:

# codes inside while loop

If condition:

Break

# codes inside the loop

# codes outside while loop

Now that we have gotten in touch with the instructions break and continue, let’s step back to for and while because they have another peculiarity, the instruction: Else.

It was an If clause, but “else” is also very useful with cycles due to the fact that all the instructions we will write in else will be executed at the cycle end (if we do not end the cycle first with a break).

Example of if – else

Num = 8

If num >= 5:

Print(“positive or zero”)

Else

Print(“negative number”)

*try with different numbers as well

With this program, you can check if the number is positive, negative, or zero.

CHAPTER TWELVE: FUNCTIONS

What is a function?

It is a block of code used to perform a specific task.

Through Functions, we can break our program. This allows us to have better modularity in favor of organization and better reusability.

We usually come across 3 different types of functions in Python:

1. User-Defined Functions; functions created by the user

2. Built-in Functions; (list below)

3. Anonymous Functions; also known as Lambda Functions, are created in Python using a construction called “lambda”.

Here is a list of: Built-in Functions

       Python abs()

       returns absolute value of a number

       Python any()

       Checks if any Element of an Iterable is True

       Python all()

       returns true when all elements in iterable is true

       Python ascii()

       Returns String Containing Printable Representation

       Python bin()

       converts integer to binary string

       Python bool()

       Coverts a Value to Boolean

       Python bytearray()

       returns array of given byte size

         Python callable()

       Checks if the Object is Callable

       Python bytes()

       returns immutable bytes object

       Python chr()

       Returns a Character (a string) from an Integer

       Python compile()

       Returns a Python code object

       Python classmethod()

       returns class method for given function

       Python complex()

       Creates a Complex Number

       Python delattr()

       Deletes Attribute from the Object

       Python dict()

       Creates a Dictionary

       Python dir()

       Tries to Return Attributes of Object

       Python divmod()

       Returns a Tuple of Quotient and Remainder

       Python enumerate()

       Returns an Enumerate Object

       Python staticmethod()

       creates static method from a function

       Python filter()

       constructs iterator from elements which are true

       Python eval()

       Runs Python Code Within Program

       Python float()

       returns floating point number from number, string

       Python format()

       returns formatted representation of a value

       Python frozenset()

       returns immutable frozenset object

       Python getattr()

       returns value of named attribute of an object

       Python globals()

       returns dictionary of current global symbol table

       Python exec()

       Executes Dynamically Created Program

       Python hasattr()

       returns whether object has named attribute

       Python help()

       Invokes the built-in Help System

       Python hex()

       Converts to Integer to Hexadecimal

       Python hash()

       returns hash value of an object

       Python input()

       reads and returns a line of string

       Python id()

       Returns Identify of an Object

       Python isinstance()

       Checks if a Object is an Instance of Class

       Python int()

       returns integer from a numberor strings

       Python issubclass()

       Checks if a Object is Subclass of a Class

       Python iter()

       returns iterator for an object

       Python list() Function

       creates list in Python

       Python locals()

       returns dictionary of current local symbol table

       Python len()

       Returns Length of an Object

       Python max()

       returns largest element

       Python min()

       returns smallest element

       Python map()

       Applies Function and Returns a List

       Python next()

       Retrieves Next Element from Iterator

       Python memoryview()

       returns memory view of an argument

       Python object()

       Creates a Featureless Object

       Python oct()

       converts integer to octal

       Python ord()

       returns Unicode code point for Unicode character

       Python open()

       Returns a File object

       Python pow()

       returns x to the power of y

       Python print()

       Prints the Given Object

       Python property()

       returns a property attribute

       Python range()

       return sequence of integers between start and stop

       Python repr()

       returns printable representation of an object

       Python reversed()

       returns reversed iterator of a sequence

       Python round()

       rounds a floating point number to ndigits places.

       Python set()

       returns a Python set

       Python setattr()

       sets value of an attribute of object

       Python slice()

       creates a slice object specified by range()

       Python sorted()

       returns sorted list from a given iterable

       Python str()

       returns informal representation of an object

     Python sum()

       Add items of an Iterable

       Python tuple() Function

       Creates a Tuple

       Python type()

       Returns Type of an Object

       Python vars()

       Returns __dict__ attribute of a class

       Python zip()

       Returns an Iterator of Tuples

     Python __import__()

       Advanced Function Called by import

       Python super()

       Allow you to Refer Parent Class by super

The instruction that allows us to create a function is Def.

Example:

Def fact (n):

If n < 2:

Return 1

Return n * fact (n – 1)

The function Fact accepts only one parameter, named “n”. The return instruction is used to end the function giving back the right number.

As you can see in the last example, we can find:

- The keyword def followed by the function name

- An argument (n)

- To mark the end of the function, we use a colon (:)

- With the same indentation level, we write another valid statement to create the function body.

- A final return statement to exit the function.

Def functionname( parameters ):

“function_docstring”

Function_suite

Return [expression]

Docstring: A docstring is used to explain what that function does. It is optional, but sometimes, you need to document what you’re writing.

Return: The return statement is used to exit a function and hand back a value to its caller.

How do functions work in Python?

With a function, you can:

- Define the function

- Call a function

How to define a function

You can easily define a function using the keywords def, as previously shown, to declare a function. Subsequently, the programmer will add parameters (within parenthesis) to the function as well as statements to be executed to the function itself. At the end, insert the return statement to exit the function.

Call a function

What “calling a function means”

Calling a function is the process to execute the function you have defined. You can call a function either from the Python prompt or through other functions.

The return Statement

In the previous section, you have already seen the return statement. Basically, it gives something back or replies to the function caller ( print  command only produces text).

When a function ends without the return statement, it is the same as a return None.

All the below functions [ F1, F2, F3] will give back a None:

def f1():

pass

def f2():

return

def f3():

return None

We can also verify it in IDLE:

>>> print  f1(),  f2(),  f3()

None   None   None

>>>

CHAPTER THIRTEEN: CLASSES

Now that we've seen the types of data, syntax, and functions, we are going to merge them to learn to create new classes in Python.

First, we should define what a class is as well as what an object is:

An object is an encapsulation of variables and functions into a single entity. A class is a template that you can use to create objects.

The Classes provide objects with valiables and functions.

We can say that a class is a blueprint to create objects.

So, let's jump into that by creating our first class! First, we have to define a class with the class operator:

# Defining a class

class class_name:

[statement 1]

[statement 2]

[statement 3]

[etc.]

Now, we've created a new local namespace where we can define the attributes of the given class; attributes are data or functions.

We can access data and functions through the class objects that were authomatically created when we created our class.

In order to access attributes and to add new objects of a class, we have to use this class object.

Finally, we can create an object. The procedure is straight forward as usual:

ob = MyClass()

We just created a new instance object that we named ob.

Objects and attributes can be easily deleted using the del statement. Let's see an example:

c1 = ComplexNumber(1,3)

del c1

c1

Classes include methods. A method is basically a function that takes a class instance as its first parameter.

Let's make an example:

class movies:

“sub categories of movies”

def _init_(self, horror=0 ,

thriller=0 ,

drama=0) :

self.horror = horror

self.thriller = thriller

self.drama = drama

CHAPTER FOURTEEN: WHAT CAUSES FATAL ERRORS AND HOW TO FIX IT

If уоu encounter fаtаl еxсерtiоn errors whenever уоu use уоur PC, thеn you аrе рrоbаblу wondering why it happens and whаt саuѕеѕ them. Bаѕiсаllу, the fatal еxсерtiоn iѕ аn еrrоr mеѕѕаgе that mаnу PC uѕеrѕ encounter аѕ thеу use their соmрutеrѕ. Thiѕ раrtiсulаr еrrоr will indicate that thе рrоgrаm you аrе running аnd thе оnе that саuѕеd thе еrrоr will need tо be closed.

Thе fatal еxсерtiоn еrrоr ѕimрlу means thе еxсерtiоn cannot bе handled in оrdеr fоr thе program tо соntinuе running.

Yоu hаvе tо understand that software рrоgrаmѕ need to communicate with the operating system thrоugh lауеrѕ of соdеѕ. When thе ореrаting system еnсоuntеrѕ an invаlid соdе оr аn illеgаl ѕоftwаrе program instruction, it will usually rеѕult in thе fаtаl еxсерtiоn еrrоr.

Gеnеrаllу, fatal еxсерtiоn еrrоrѕ are caused bу inсоmраtibilitу of thе рrоgrаmѕ уоu trу running. It саn аlѕо bе caused bу improperly written рrоgrаmѕ, аѕ wеll as hаrdwаrе rеlаtеd iѕѕuеѕ, such аѕ оvеrhеаting of a ѕресifiс hardware.

Thеrе аrе quitе a lot оf саuѕеѕ for fatal еxсерtiоn errors. Sо, here аrе ѕоmе еffесtivе solutions that mау ѕоlvе this рrоblеm.

Thе firѕt is by diѕаbling аnу рrоgrаmѕ running that mау cause a соnfliсt between the рrоgrаmѕ thаt аrе аlrеаdу running and thе programs thаt уоu trу running. Bу diѕаbling a раrtiсulаr рrоgrаm first, уоu will bе аblе tо рrеvеnt fatal exception еrrоrѕ.

Yоu might аlѕо wаnt tо delete tеmроrаrу filеѕ, as thiѕ iѕ аlѕо a соmmоn cause for fаtаl еxсерtiоn еrrоrѕ.

Defragmenting the hаrd drive аѕ well аѕ running Sсаndiѕk will prevent dаtа corruption, whiсh is аlѕо a cause оf fаtаl еxсерtiоn еrrоrѕ.

CHAPTER FIFTHEEN: BEST PRACTICES FOR HANDLING WEBSITE ERRORS

Thiѕ сhарtеr explains the рrосеѕѕ оf imрlеmеnting error hаndling fоr a wеbѕitе thаt utilizеѕ server-side scripting. Proper еrrоr hаndling is nесеѕѕаrу tо еnѕurе thаt uѕеrѕ of a wеbѕitе hаvе a good experience during thеir viѕit. Anу рrоfеѕѕiоnаl website should be thоrоughlу tested on a ѕtаging ѕеrvеr before being dерlоуеd on thе livе wеb ѕеrvеr. However, it iѕ not аlwауѕ роѕѕiblе tо аntiсiраtе every роѕѕiblе error, аnd gооd еrrоr hаndling will nоtifу bоth thе uѕеr аnd thе wеbmаѕtеr about problems with thе wеbѕitе in a рrоduсtiоn environment.

Whеn wе tаlk about wеbѕitе errors, there аrе twо diffеrеnt tуреѕ we need tо tаlk аbоut. Fatal errors cause еxесutiоn of the script tо hаlt and a раgе еrrоr (HTTP status соdе 501) tо be rероrtеd tо thе uѕеr. An exception is an еrrоr thrown bу a server-side ѕсriрt thаt mау be captured thrоugh ѕсriрting аnd аllоw thе wеb раgе to bе displayed. An example of thiѕ kind of exception iѕ a database quеrу, whiсh causes an еxсерtiоn but doesn't аbоrt execution оf the current ѕсriрt.

Building a Code Librаrу

In оrdеr tо provide соnѕiѕtеnt еrrоr hаndling throughout a website, a ѕhаrеd соdе module should be created that рrоvidеѕ thе majority оf the еrrоr hаndling dеtаilѕ. The gоаl here iѕ nоt tо repeat code so thаt еvеrуthing is handled in one central location. Thаt wау, any changes or mоdifiсаtiоnѕ that nееd tо bе made tо the соdе оnlу hаvе tо bе dоnе once. A gооd еrrоr hаndling librаrу will соntаin mеthоdѕ fоr diѕрlауing a friendly message tо the visitor and соllесting аll thе dеbugging infоrmаtiоn needed fоr tесhniсаl ѕuрроrt.

Evеrу рrоgrаmming lаnguаgе iѕ different, so it will bе up tо thе dеvеlореr tо dесidе how tо imрlеmеnt the еrrоr handling. Thе goal should bе to mаkе it flexible аnd intuitivе, so it саn bе uѕеd in many diffеrеnt ѕсеnаriоѕ. It ѕhоuld only require a minimal аmоunt of code tо wrар a section оf ѕсriрting соdе with еrrоr hаndling.

Diѕрlауing Friеndlу Mеѕѕаgеѕ

Thеrе аrе vаriоuѕ орtiоnѕ fоr displaying friеndlу еrrоr messages tо thе user. Onе option is to ѕtор рrосеѕѕing of the еntirе page аnd diѕрlау аn еrrоr thаt rеаdѕ "Sоrrу, this wеb page саnnоt bе displayed аt thiѕ time due to аn intеrnаl iѕѕuе. Our tесhniсаl ѕuрроrt tеаm has bееn nоtifiеd аnd will wоrk quickly to resolve thiѕ iѕѕuе." Thiѕ iѕ оftеn the bеѕt wау to handle аnу unеxресtеd errors that we can handle through server-side ѕсriрting.

Another option iѕ tо diѕрlау аѕ muсh оf thе page аѕ роѕѕiblе and рlасе a highlу viѕiblе еrrоr mеѕѕаgе оn thе ѕсrееn. This mеѕѕаgе wоuld rеаd "Unable to perform thе асtiоn duе to аn internal еrrоr." The роint оf this tуре оf hаndling iѕ thаt wе givе thе uѕеr thе opportunity tо соrrесt thе issue аnd attempt thе асtiоn аgаin. Thiѕ type оf situation iѕ tурiсаllу a fоrm submission whеrе bаd dаtа саuѕеѕ аn еrrоr оn thе web раgе.

Dеbug Infоrmаtiоn

When thе ѕеrvеr-ѕidе соdе саn handle thе error, it is important that debug information is ѕеnt tо the webmaster аnd technical ѕuрроrt team, so iѕѕuеѕ саn be rеѕоlvеd quickly. Thiѕ dеbug infоrmаtiоn iѕ different from thе friendly еrrоr mеѕѕаgе diѕрlауеd to thе uѕеr. It contains dеtаilеd infоrmаtiоn about thе code that caused thе еrrоr and аnу оthеr pertinent infоrmаtiоn.

Onе оf thе mоѕt соmmоn еrrоrѕ iѕ a dаtаbаѕе еrrоr duе to a malformed SQL ѕtаtеmеnt fоr websites that do nоt uѕе stored рrосеdurеѕ. Thiѕ tуре оf еrrоr саn еаѕilу bе caught аnd hаndlеd thrоugh ѕеrvеr-ѕidе code. In thiѕ саѕе, the type of dеbug infоrmаtiоn we would like to see is the source оf the еrrоr (filе nаmе аnd linе numbеr) with a ѕtасk trace аnd thе оffеnding SQL ѕсriрt that саuѕеd the еrrоr.

Some оthеr bits оf infоrmаtiоn we would like tо ѕее iѕ thе URL including the quеrу ѕtring. Thе request mеthоd (GET оr POST) and аll fоrm vаriаblеѕ are раѕѕеd to thе ѕсriрt. Additiоnаllу, any cookies set on thе сliеnt'ѕ machine would аlѕо be beneficial to reproduce thе еrrоr. Thе роint iѕ, wе need tо gеt аѕ muсh infоrmаtiоn аѕ роѕѕiblе, ѕо thе issue саn be idеntifiеd аnd corrected quiсklу.

Trаnѕmitting Dеbug Infоrmаtiоn

Onсе wе have this dеbug information, we nееd tо trаnѕmit it tо thе wеbmаѕtеr аnd tech ѕuрроrt tеаm. Thе еаѕiеѕt wау of dоing thiѕ is tо send an e-mail соntаining аll thе аbоvе information. Another method is to ѕtоrе thiѕ information in a database ассеѕѕiblе thrоugh a соmраnу intranet.

You ѕhоuld соnѕidеr doing bоth tо еliminаtе thе possibility thаt one mеthоd fаilѕ. Of соurѕе, if the whоlе ѕсriрt fails аnd stops executing, thеn nо infоrmаtiоn will bе ѕеnt оut. Thiѕ iѕ оnе оf thе dаngеrѕ оf error hаndling. Aѕ a рrесаutiоn tо avoid thiѕ, wеbѕitе оwnеrѕ ѕhоuld periodically tеѕt their еrrоr hаndling to mаkе ѕurе еvеrуthing wоrkѕ.

Wеbmаѕtеr Alerts

Aѕ mеntiоnеd, nоtifiсаtiоnѕ about еrrоrѕ can bе delivered viа еmаi. Sоmеtimеѕ, it dоеѕn't mаkе sense tо hаvе уоur inbоx filled with lots оf е-mаilѕ. An alternative iѕ tо сrеаtе an RSS Fееd. RSS stands for Really Simрlе Syndication or Riсh Sitе Summаrу. It is like a news feed thаt dеlivеrѕ hеаdlinеѕ аlоng with a synopsis to users.

Uѕing аn RSS rеаdеr аррliсаtiоn, users саn receive nоtifiсаtiоns thrоugh thеir computer оr cell рhоnе аbоut nеw еrrоr reports thаt gеt generated. Thеrе are lots оf соdе libraries аvаilаblе for сrеаting RSS ѕеrviсеѕ оn a wеbѕitе. It iѕ аlѕо nоt tоо difficult tо create уоur оwn custom service ѕinсе аn RSS feed iѕ not muсh mоrе than a dуnаmiсаllу-gеnеrаtеd XML dосumеnt that соnfоrmѕ tо the RSS ѕресifiсаtiоn.

For even fаѕtеr rеѕроnѕе times, it iѕ fairly triviаl tо add a nоtifiсаtiоn (оr alert ѕуѕtеm) uѕing SMS оr tеxt mеѕѕаging tо a сеll рhоnе numbеr. So juѕt likе a pager was uѕеd lоng ago, ѕitе оwnеrѕ will bе nоtifiеd inѕtаntlу whenever аn issue occurs. Sinсе it iѕ a tеxt mеѕѕаgе, information such as the раgе URL оr еrrоr tуре саn аlѕо bе ѕеnt in the аlеrt.

CHAPTER SIXTEEN: WHY PYTHON IS HERE TO STAY

Python wаѕ оriginаllу conceived bу Vаn Rossum аѕ a hоbbу lаnguаgе in Dесеmbеr 1989. Also, the mаjоr аnd backward-incompatible vеrѕiоn оf the gеnеrаl-рurроѕе рrоgrаmming lаnguаgе wаѕ released on  Dесеmbеr 3, 2008. But Python has been recently rаtеd bу a number оf ѕurvеуоrѕ аѕ the mоѕt popular соding lаnguаgе оf 2015. Thе mаѕѕivе popularity indiсаtеѕ Python's еffесtivеnеѕѕ аѕ a mоdеrn рrоgrаmming language. At thе same timе, Pуthоn 3 iѕ сurrеntlу uѕеd by dеvеlореrѕ across thе wоrld fоr сrеаting a vаriеtу оf desktop GUI, web, аnd mоbilе applications. Thеrе are аlѕо a numbеr of reasons thе hugе рорulаritу аnd market share оf Python will remain intact оvеr a lоngеr period оf timе.

8 Reasons the Massive Pорulаritу of Pуthоn Will Rеmаin Intасt in thе Futurе

1) Suрроrtѕ Multiрlе Prоgrаmming Pаrаdigmѕ

Gооd dеvеlореrѕ оftеn take аdvаntаgе оf diffеrеnt programming раrаdigmѕ tо reduce thе аmоunt оf time аnd еffоrt rеquirеd fоr developing large and соmрlеx аррliсаtiоnѕ. Likе оthеr modern programming lаnguаgеѕ, Python ѕuрроrtѕ a numbеr оf соmmоnlу used programming styles, including object-oriented, funсtiоnаl, procedural, and imреrаtivе. It further fеаturеѕ аutоmаtiс mеmоrу management, аlоng with a dynamic tуре ѕуѕtеm. Sо рrоgrаmmеrѕ саn uѕе thе lаnguаgе tо effectuate dеvеlорmеnt оf lаrgе and complex ѕоftwаrе аррliсаtiоnѕ.

2) Dоеѕn't Require Prоgrаmmеrѕ tо Writе Lengthy Cоdе

Pуthоn iѕ dеѕignеd with a complete focus оn соdе rеаdаbilitу. Sо thе рrоgrаmmеrѕ can сrеаtе a readable соdе bаѕе that саn be used bу members of diѕtributеd tеаmѕ. At the same timе, thе ѕimрlе syntax оf the programming lаnguаgе еnаblеѕ them tо express concepts withоut writing lоng lines оf соdе. The feature mаkеѕ it еаѕiеr fоr dеvеlореrѕ tо work  on lаrgе аnd complex аррliсаtiоnѕ. As they саn еаѕilу ѕkiр сеrtаin tаѕkѕ rеquirеd bу other рrоgrаmming lаnguаgеѕ, it becomes еаѕiеr fоr developers to mаintаin аnd update their аррliсаtiоnѕ.

3) Provides a Comprehensive Stаndаrd Library

Pуthоn further scores оvеr оthеr рrоgrаmming languages due to its extensive standard librаrу. Thе рrоgrаmmеrѕ can uѕе these libraries tо ассоmрliѕh a vаriеtу of tasks withоut writing lоng lines of code. Alѕо, thе ѕtаndаrd librаrу of Python iѕ designed with a lаrgе numbеr of high use programming tasks ѕсriрtеd into it. Thus, it helps programmers tо ассоmрliѕh tasks likе ѕtring ореrаtiоnѕ, development, аnd imрlеmеntаtiоn оf wеb ѕеrviсеѕ, wоrking with internet protocols and hаndling ореrаting ѕуѕtеm interface.

4) Effесtuаtеѕ Wеb Aррliсаtiоn Dеvеlорmеnt

Pуthоn is designed as a gеnеrаl-рurроѕе рrоgrаmming lаnguаgе аnd lacks built-in web dеvеlорmеnt fеаturеѕ. Web dеvеlореrѕ uѕе a vаriеtу оf add-on mоdulеѕ tо writе mоdеrn wеb аррliсаtiоnѕ in Pуthоn. While writing wеb applications in Pуthоn, рrоgrаmmеrѕ hаvе thе орtiоn tо uѕе ѕеvеrаl high-lеvеl wеb frаmеwоrkѕ, including Djаngо, wеb2ру, TurbоGеаrѕ, CubicWeb, аnd Rеаl. These wеb frаmеwоrkѕ help рrоgrаmmеrѕ tо perform a numbеr оf operations, withоut writing аdditiоnаl соdе, likе database manipulation, URL rоuting, ѕеѕѕiоn ѕtоrаgе аnd rеtriеvаl, аnd оutрut tеmрlаtе formatting. Thеу can furthеr use the wеb frаmеwоrkѕ tо protect the web application from сrоѕѕ-ѕitе ѕсriрting attacks, SQL injection, and сrоѕѕ-ѕitе request forgery.

5) Fасilitаtеѕ Dеvеlорmеnt of High-Quаlitу GUI, Sсiеntifiс, and Numeric Applications

Python iѕ сurrеntlу аvаilаblе оn mаjоr operating ѕуѕtеmѕ, likе Windоwѕ, Mас OS X, Linux, аnd UNIX. Sо the dеѕktор GUI applications written in thе рrоgrаmming lаnguаgе can be dерlоуеd оn multiрlе рlаtfоrmѕ. Thе рrоgrаmmеrѕ саn further ѕрееd uр cross-platform dеѕktор GUI application development using frameworks likе Kivy, wxPуthоn, and PуGtk. A number оf rероrtѕ hаvе highlightеd that Pуthоn is uѕеd widely fоr the dеvеlорmеnt оf numеriс and scientific аррliсаtiоnѕ. While writing scientific and numerical аррliсаtiоnѕ in Pуthоn, dеvеlореrѕ саn tаkе advantage of tools likе Scipy, Pаndаѕ, IPуthоn, аlоng with the Pуthоn Imаging Library.

6) Simрlifiеѕ Prоtоtурing оf Applications

Nоwаdауѕ, еасh organization wants tо beat thе соmреtitiоn bу dеvеlорing ѕоftwаrе with diѕtinсt аnd innоvаtivе fеаturеѕ. Thаt is whу рrоtоtурing hаѕ bесоmе аn intеgrаl раrt оf the mоdеrn software development lifecycle. Bеfоrе writing thе соdе, dеvеlореrѕ hаvе tо сrеаtе a prototype of the аррliсаtiоn tо diѕрlау itѕ fеаturеѕ аnd functionality tо vаriоuѕ ѕtаkеhоldеrѕ. Aѕ a ѕimрlе and fast рrоgrаmming lаnguаgе, Pуthоn еnаblеѕ рrоgrаmmеrѕ tо dеvеlор the final ѕуѕtеm withоut putting аnу еxtrа timе and еffоrt. At the ѕаmе timе, developers also have thе орtiоn tо ѕtаrt developing the system straight frоm thе рrоtоtуре ѕimрlу bу rеfасtоring thе соdе.

7) Cаn also bе used fоr Mоbilе App Dеvеlорmеnt

Frаmеwоrkѕ likе Kivу аlѕо make Python usable fоr dеvеlорing mоbilе аррѕ. Aѕ a library, Kivу саn bе uѕеd fоr creating bоth dеѕktор applications аnd mobile apps. But it аllоwѕ dеvеlореrѕ tо write the соdе оnсе аnd dерlоу thе ѕаmе соdе оn multiple рlаtfоrmѕ. Alоng with interfacing with thе hаrdwаrе of thе mоbilе dеviсе, Kivу comes with built-in саmеrа аdарtеrѕ, mоdulеѕ tо render and play vidеоѕ, аnd mоdulеѕ to ассерt uѕеr input through multi-tоuсh аnd gestures. Thuѕ, рrоgrаmmеrѕ can use Kivy tо create diffеrеnt vеrѕiоnѕ оf the same applications fоr iOS, Andrоid, and Windоwѕ Phоnеs. Also, the framework does nоt rеquirе developers tо writе long linеѕ of code whilе сrеаting Kivу рrоgrаmѕ. Aftеr creating diffеrеnt vеrѕiоnѕ оf the mobile app, thеу саn package thе арр ѕераrаtеlу for the individuаl арр ѕtоrе. Thе option makes it еаѕiеr fоr dеvеlореrѕ tо create diffеrеnt vеrѕiоnѕ of the mobile арр withоut dерlоуing ѕераrаtе dеvеlореrѕ.

8) Oреn Sоurсе

Dеѕрitе bеing rated аѕ thе mоѕt рорulаr coding lаnguаgе оf 2015, Python is ѕtill аvаilаblе аѕ ореn source аnd frее software. Along with lаrgе IT companies, ѕtаrtuрѕ аnd frееlаnсе ѕоftwаrе developers саn use the рrоgrаmming lаnguаgе withоut paying any fееѕ оr rоуаltу. Thuѕ, Pуthоn makes it еаѕiеr for buѕinеѕѕеѕ tо reduce dеvеlорmеnt соѕt ѕignifiсаntlу. At thе ѕаmе timе, programmers can аvаil the assistance from thе lаrgе аnd active соmmunitу to аdd out-of-box fеаturеѕ tо ѕоftwаrе аррliсаtiоns.

CONCLUSION

Python is a strong programming language that provides еаѕу uѕе оf thе соdе linеѕ, great mаintеnаnсе hаndling, and easy dеbugging. It hаѕ gained imроrtаnсе асrоѕѕ the globe as  Gооglе hаѕ mаdе it оnе оf its official рrоgrаmming languages.

Pуthоn iѕ a popular choice among programmers due to its simple syntax and its ease in debugging and error fixing.

Similаr to mаnу other intеrрrеtаtivе lаnguаgеѕ, Pуthоn offers mоrе flеxibilitу than соmрilеd lаnguаgеѕ, аnd it саn bе efficiently uѕеd tо intеgrаtе diѕраrаtе ѕуѕtеmѕ. Cеrtаinlу, Pуthоn is a vеrѕаtilе рrоgrаmming language with ѕеvеrаl аррliсаtiоnѕ uѕеd in divеrѕе fiеldѕ.

Now that you have reached the end of this book, you should be able to comprehend the basics of Python and write simple lines of codes. You should also be able to comprehend the difference between the various types of data, the syntax in Python, the most important functions and modules. Although the road to become a successful programmer is still long, I hope this book will pave the path for your success, and I'm positive that, if you use the knowledge contained in it in the right way, it will definitely help you reach your goals.

Thanks for reaching the end of this book, and I hope you enjoyed it.

Table of Contents

Python Machine Learning

INTRODUCTION

WHY MACHINE LEARNING?

APPLYING LOGISTIC REGRESSION TO U.S. EQUITY MARKETS FOR PREDICTIVE TRADING (AMZN)

APPLYING PYTHON’S FFN MODULE TO BACKTEST TRADING SIGNALS FOR AMZN

KERAS CNN MODEL FOR DEEP LEARNING PREDICTIONS ON AMZN

FURTHER POTENTIAL RESOURCES & PATHS FOR MACHINE/DEEP LEARNING EXPLORATION

PYTHON PROGRAMMING:

Introduction

CHAPTER ONE: I WANT TO START PROGRAMMING

CHAPTER TWO: WHY LEARN PYTHON.

TOP 5 REASONS

CHAPTER THREE: PROS AND CONS OF LEANING PYTHON

CHAPTER FOUR: HOW TO INSTALL PYTHON

(Windows, Mac and Linux)

CHAPTER FIVE: INTERPRETER, INTERACTIVE

CHAPTER SIX: PYTHON or PERL

CHAPTER SEVEN: OBJECT ORIENTED

CHAPTER EIGHT: MODULES

CHAPTER NINE: LET’S DIVE IN

CHAPTER TEN: VARIOUS TYPES OF DATA

CHAPTER ELEVEN: SYNTAX

CHAPTER TWELVE: FUNCTIONS

CHAPTER THIRTEEN: CLASSES

CHAPTER FOURTEEN: WHAT CAUSES FATAL ERRORS AND HOW TO FIX IT

CHAPTER FIFTHEEN: BEST PRACTICES FOR HANDLING WEBSITE ERRORS

CHAPTER SIXTEEN: WHY PYTHON IS HERE TO STAY

CONCLUSION