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Top 10 Python Libraries Every Quant Should Know
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Learn the top 10 Python libraries every quant should know for finance, data analysis, and algorithmic trading.
If you’re serious about trading or finance, Python is your best friend. But knowing Python isn’t enough. You need the right tools — libraries built for speed, accuracy, and scale.
This guide shares the top Python libraries every quant should know, with a quick overview, how it’s used, and code examples you can start using today.
Photo by Hans Eiskonen on Unsplash
Also, if you’re looking for real-world application of forecasts built using these tools, check out Meyka — it gives AI-driven predictions and chart-based technical insights for global stocks.
Let’s get into it.
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1. NumPy
Why it’s used: Fast mathematical operations and handling large arrays.
import numpy as np
arr = np.array([1, 2, 3])
mean = np.mean(arr)
2. Pandas
Why it’s used: Handles tabular financial data like stock prices and trading logs.
import pandas as pd
df = pd.read_csv('stock_data.csv')
print(df.head())
3. Matplotlib
Why it’s used: Visualizes trends, prices, and strategy results.
import matplotlib.pyplot as plt
df['Close'].plot()
plt.title('Stock Closing Prices')
plt.show()
4. TA-Lib (or ta)
Why it’s used: Built-in technical indicators like RSI, MACD, SMA.
from ta.momentum import RSIIndicator
rsi = RSIIndicator(df['Close'])
df['RSI'] = rsi.rsi()
5. Scikit-learn
Why it’s used: Backtesting signals, building regression or classification models.
from sklearn.linear_model import LinearRegression
model = LinearRegression()
model.fit(X_train, y_train)
6. Statsmodels
Why it’s used: Run statistical tests or build time series models like ARIMA.
import statsmodels.api as sm
model = sm.tsa.ARIMA(df['Close'], order=(1, 1, 1))
results = model.fit()
print(results.summary())
7. FBProphet (now called Prophet)
Why it’s used: Forecast stock prices using a model built by Facebook.
from prophet import Prophet
df_fb = df[['Date', 'Close']].rename(columns={'Date': 'ds', 'Close': 'y'})
model = Prophet()
model.fit(df_fb)
future = model.make_future_dataframe(periods=30)
forecast = model.predict(future)
8. YFinance
Why it’s used: Pull real-time or historical stock data from Yahoo Finance.
import yfinance as yf
data = yf.download('AAPL', start='2020-01-01', end='2023-12-31')
9. PyPortfolioOpt
Why it’s used: Optimize portfolio allocation with risk and return balance.
from pypfopt.efficient_frontier import EfficientFrontier
from pypfopt.risk_models import risk_matrix
ef = EfficientFrontier(expected_returns, risk_matrix)
weights = ef.max_sharpe()
10. Backtrader
Why it’s used: Test trading strategies with historical data.
import backtrader as bt
class TestStrategy(bt.Strategy):
def next(self):
if not self.position:
self.buy()
cerebro = bt.Cerebro()
cerebro.addstrategy(TestStrategy)
# Add data and run...
How Meyka Applies These Concepts
All these libraries are great. But building your own forecasting or analysis platform takes time. At Meyka, we use similar concepts — time series models, momentum indicators, and data pipelines — to help investors see clean signals, not just charts.
From AAPL to Tesla, it gives you future price forecasts, support/resistance, and data breakdowns — ready to use.
Final Thoughts: Learn What Matters Most
You don’t need to learn every library right now. Pick one or two based on your goals — maybe Prophet for forecasting or TA-Lib for strategy building. Start small. Try the code. Track your results.
And if you want a shortcut to seeing these ideas in action, use Meyka and explore how real-time predictions are built with Python’s best tools.