Python for Finance: A Crash Course

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 PYTHON FOR
FINANCE: A CRASH
COURSE MODERN
GUIDE

Hayden Van Der Post

Vincent Bisette

Reactive Publishing
 CONTENTS

Title Page
Preface
Chapter 1: Why Python for Finance?
Chapter 2: Setting Up Your Python Environment
Chapter 3: Python Syntax and Basic Constructs
Chapter 4: Time-Series Analysis
Chapter 5: Introduction to Portfolio Theory
Chapter 6: Algorithmic Trading Strategies
Chapter 7: Overview of Machine Learning
Chapter 8: Linear Regression Models
Chapter 9: Natural Language Processing (NLP) for Financial News
Analysis
Python Basics for Finance Guide
Data Handling and Analysis in Python for Finance Guide
Time Series Analysis in Python for Finance Guide
Visualization in Python for Finance Guide
Algorithmic Trading in Python
Additional Resources
 PREFACE

W
elcome to "Python for Finance: A Crash Course Modern Guide", a
comprehensive resource designed for advanced users who are
poised to leverage Python's capabilities to analyze financial data,
develop trading strategies, and solve complex financial problems. This book
assumes a foundational understanding of both Python programming and
financial principles, aiming to bridge the gap between advanced theoretical
concepts and their practical applications in finance.

The world of finance is both dynamic and complex, characterized by an

incessant influx of data and a constant demand for more refined analytical
processes. In this environment, Python has emerged as an indispensable tool
for financial analysts, traders, and quantitative researchers due to its
simplicity, flexibility, and powerful libraries specifically tailored for
financial analysis. This book will guide you through the advanced use of
Python in finance, covering topics from portfolio optimization and risk
management to algorithmic trading and beyond.

Our purpose in writing this book is twofold. First, we aim to provide you
with the advanced programming skills needed to execute sophisticated
financial analyses and develop robust trading strategies using Python.
Second, we endeavor to present these concepts in a manner that bridges
theoretical knowledge and practical application, enabling you to tackle real-
world financial challenges with confidence and precision.

The target audience for this book is not beginners to programming or

finance. Rather, it is written for those who already possess an intermediate
to advanced understanding of Python and a solid foundation in financial
concepts. Whether you are a finance professional seeking to enhance your
analytical skills, a data scientist aspiring to specialize in financial
applications, or a student in a related field aiming to expand your expertise,
this book is tailored for you.

Through concise explanations, practical examples, and hands-on exercises,

you will learn to apply Python's extensive libraries and tools in finance.
Each chapter builds on the knowledge of the preceding ones, structured to
facilitate both comprehensive learning and quick reference. By the end of
this journey, you will not only have mastered advanced financial analysis
with Python but also acquired a toolkit to tackle the evolving challenges of
the financial industry with innovation and efficiency.

As you turn these pages, we invite you to immerse yourself in the

exploration of Python's vast potential in finance. Let this book be your
guide to mastering the complexity of financial analysis with the simplicity
and power of Python. Welcome to the intersection of finance and
technology, where your journey towards becoming an advanced practitioner
begins.

Happy coding and analyzing,

 CHAPTER 1: WHY
PYTHON FOR FINANCE?

T
he integration of Python into finance can be traced back to its core
attributes: simplicity, flexibility, and a vast ecosystem of libraries.
Unlike its contemporaries, Python was designed with readability and
straightforward syntax in mind, allowing financial analysts, who may not
have a deep background in computer science, to quickly grasp and
implement complex financial models and simulations.

Python's versatility is evident in its wide application, ranging from

straightforward financial calculations to developing complex trading
algorithms. The language's robust libraries, such as NumPy for numerical
computing, pandas for data manipulation, and matplotlib for data
visualization, have underpinned its utility in handling vast datasets common
in finance.

The financial industry thrives on the analysis and interpretation of data.

Python excels here, offering tools that streamline the process of data
collection, cleaning, and analysis. Through libraries like pandas, financial
professionals can manipulate and analyze time-series data, crucial for
market trend analysis and economic forecasting.

Moreover, Python's Scikit-learn library has opened avenues for machine

learning in finance, enabling predictive models that can assess risk, identify
trading opportunities, and automate trading strategies. This application of
Python for both traditional financial analysis and the cutting-edge field of
machine learning illustrates its dual role as both a foundational tool and a
gateway to innovation.

The rise of Python has also led to a paradigm shift in the skill set required
in the finance sector. Financial institutions now seek professionals who are
not only adept in financial theories but also proficient in Python. This
demand has propelled Python to a core subject in finance-related academic
curricula and professional training programs.

Moreover, Python's accessibility and the community's commitment to open-

source principles have fostered a collaborative environment. Financial
analysts, traders, and researchers share code, develop libraries, and
contribute to forums, pushing the boundaries of financial innovation.

One of the most notable applications of Python in finance is in the world of

algorithmic trading. Python's capacity to process and analyze large datasets
in real-time, coupled with its ability to integrate with trading platforms,
makes it an ideal choice for developing automated trading systems. These
systems can monitor market movements, execute trades based on
predefined criteria, and manage risk, all with minimal human intervention.

Python's role in algorithmic trading is not limited to strategy development.

Libraries like backtrader and pyfolio offer tools for backtesting, allowing
traders to simulate their strategies on historical data before deploying them
in live markets. This capability to rigorously test and refine trading
algorithms underscores Python's value in reducing risk and enhancing
profitability.

The incursion of Python into the financial industry is not merely a trend but
a transformation. From data analysis and risk management to algorithmic
trading and machine learning, Python has become the cornerstone of
modern financial operations. Its simplicity, power, and the supportive
community have democratized financial analysis, enabling professionals
and institutions to navigate the complexities of the financial world with
unprecedented precision and insight.
As we look towards the future, Python's role in finance is poised to grow,
driven by ongoing innovation in financial technology. For those embarking
on a journey in finance, proficiency in Python is not just an asset but a
necessity, unlocking doors to new opportunities and frontiers in the
financial domain.

The Growth of Python in Finance

The ascent of Python within the finance sector is a narrative of evolutionary

growth, marked by pivotal developments and the strategic foresight of the
financial community. This segment explores the dynamic expansion of
Python's role in finance, charting its journey from a supplementary tool to a
fundamental driver of financial analysis, innovation, and strategy.

Python's initial incursion into the finance industry was met with skepticism.
Traditional tools like Excel, MATLAB, and C++ dominated the landscape,
and the introduction of a new, seemingly less powerful language was
viewed with caution. However, the early adopters of Python in finance
recognized its potential for simplifying tasks that were cumbersome with
existing tools. They leveraged Python’s simplicity to automate routine data
analysis tasks, laying the groundwork for a broader acceptance.

The turning point came with the exponential growth of the Python
community. Developers and financial professionals began contributing to a
burgeoning ecosystem of libraries specifically designed for finance. This
collaborative effort resulted in tools that could handle time-series data,
perform complex calculations, and model financial theories more efficiently
than ever before.

Quantitative finance, with its reliance on complex mathematical models and

large-scale data analysis, provided fertile ground for Python's expansion.
The language's ability to seamlessly manage large datasets and its capacity
for rapid prototyping made it an invaluable asset for quants. Python
libraries such as NumPy and pandas facilitated operations on numerical
data, while matplotlib and seaborn offered advanced visualization
capabilities, making the interpretation of financial models and data more
intuitive.
The development of libraries like QuantLib, dedicated to quantitative
finance, further cemented Python's place in the industry. These tools
enabled professionals to model derivatives, perform risk management tasks,
and construct financial instruments with unprecedented ease.

Python's accessibility has played a crucial role in democratizing financial

analysis. With resources readily available online and a supportive
community, individuals and smaller firms could undertake sophisticated
financial analyses that were previously the domain of large institutions.
This democratization has spurred innovation, with novel financial
technologies and strategies emerging from beyond traditional financial
powerhouses.

The fintech revolution, characterized by the amalgamation of technology

and finance, has been significantly powered by Python. Startups and
established financial institutions alike have adopted Python to develop
applications ranging from automated trading systems to personal finance
management tools. The language's ability to handle vast amounts of data in
real-time makes it ideal for applications that require quick, accurate
financial insights.

Moreover, Python's role in the rise of machine learning in finance cannot be

overstated. Libraries such as TensorFlow and Keras have made it possible
to apply complex machine learning algorithms to financial data, enabling
predictive models that can forecast market trends, enhance trading
strategies, and identify risks with a level of accuracy previously
unimaginable.

Today, Python stands as the lingua franca of the financial industry. Its
adoption by leading financial institutions, universities, and regulatory
bodies worldwide speaks to its unmatched capabilities and the value it
brings to the finance sector. As we move forward, the continued evolution
of Python and its ecosystem holds the promise of further innovations. From
blockchain technologies to artificial intelligence in finance, Python is at the
forefront of driving change and shaping the future of the industry.
the growth of Python in finance is a testament to the language's adaptability,
power, and the vibrant community that supports it. What began as a tool for
simplifying data analysis tasks has transformed into a cornerstone of
financial strategy and innovation, demonstrating the profound impact
Python has had on the financial landscape.

Comparison with Other Programming Languages

In the financial sector, the choice of programming language can

significantly influence the efficiency, scalability, and flexibility of financial
models and analyses. Python, with its concise syntax and robust ecosystem,
has emerged as a preferred language for many. However, to appreciate its
standing, one must consider how it compares to other stalwarts in the field
such as R, MATLAB, C++, and Java.

R, like Python, is a language designed with data analysis in mind. It boasts

a rich set of libraries for statistical analysis and visualization, making it a
favorite among statisticians and data scientists. However, Python edges out
R in terms of versatility. Python's syntax is more intuitive and easier for
non-statisticians to learn, which democratizes data analysis across different
domains, including finance. Furthermore, Python's extensive libraries such
as NumPy, pandas, and scikit-learn offer comparable, if not superior, data
manipulation and machine learning capabilities, making it a more well-
rounded choice for financial analysis that goes beyond mere statistical
computations.

MATLAB has been a mainstay in engineering and quantitative finance for

decades, prized for its powerful mathematical and numerical computing
capabilities. Its toolboxes are highly optimized for performance, and its
extensive use in academia means many financial engineers are proficient in
it. However, Python provides an open-source alternative with libraries like
NumPy and SciPy that match MATLAB’s capabilities. While MATLAB's
syntax and debugging tools are tailored for matrix operations and numerical
simulations, Python's simplicity and versatility, combined with its free
access, have led many to migrate from MATLAB for financial modeling
and analysis tasks.
C++ is renowned for its execution speed and control over system resources,
making it ideal for high-frequency trading applications where performance
is critical. Python, on the other hand, is an interpreted language and
inherently slower in raw execution. However, Python offers greater
developer productivity and faster prototyping, which is crucial in rapidly
changing financial markets. Python’s ability to bind with C/C++ libraries
(using Cython, for example) allows developers to optimize performance-
critical parts of their code. This symbiosis enables the rapid development of
complex financial models in Python, with critical sections accelerated
through C++ integration, offering a balance between speed and
development efficiency.

Java holds a strong position in large-scale, enterprise-level financial

applications, thanks to its platform independence, robustness, and
performance. It is extensively used in banking and financial services for
transaction management systems, back-end services, and as the basis for
many trading platforms. While Python is used for data analysis and
prototyping, Java often becomes the choice for deploying scalable, high-
performance financial applications. Yet, Python's simplicity and the rich
ecosystem, especially for data analysis and machine learning, make it a
preferred language for the exploratory and analytical phases of financial
projects.

In the diverse ecosystem of programming languages used in finance, Python

stands out for its ability to offer a blend of simplicity, versatility, and a
comprehensive suite of libraries tailored for financial analysis. While other
languages have their niches—R for statistical analysis, MATLAB for
engineering applications, C++ for performance-critical tasks, and Java for
enterprise applications—Python's widespread adoption is a testament to its
balance of readability, performance, and an active community that
continually enhances its capabilities.

Python's growth in finance is not about surpassing other languages in every

aspect but about offering a harmonious blend that caters to the dynamic
needs of financial analysis, modeling, and algorithmic trading. Its role as a
bridge between different programming paradigms and its ability to integrate
with other languages and platforms underscores its central position in the
modern financial technology stack.

Case Studies of Successful Python Implementations in Finance

The ascent of Python within the financial industry is best understood

through a lens of real-world applications and success stories. Below, we
delve into a series of case studies that exemplify Python's transformative
role in finance, highlighting its versatility, ease of use, and powerful
libraries that have revolutionized financial analysis, modeling, and
algorithmic trading.

One of the world's leading hedge funds, Renaissance Technologies, famous

for its Medallion Fund, has been a pioneer in adopting Python to distill vast
amounts of market data into profitable trading strategies. Their approach
combines mathematical models, statistical analysis, and machine learning to
predict price movements. Python, with its rich ecosystem of data analysis
and machine learning libraries such as pandas, NumPy, and scikit-learn, has
been instrumental in processing and analyzing data, backtesting strategies,
and executing trades. The flexibility of Python allowed their quants
(quantitative analysts) to develop complex algorithms rapidly, test
hypotheses, and refine strategies, contributing to the fund's extraordinary
returns.

A leading global bank integrated Python into its risk management

framework to perform credit risk analysis and real-time market risk
assessment. By leveraging Python's pandas library for data manipulation
and analysis, along with SciPy for advanced mathematical functions, the
bank developed a comprehensive risk assessment toolkit. This toolkit
enabled the bank to automate the aggregation of risk metrics, perform
sensitivity analysis, and generate detailed risk reports. Python's ability to
interface with other languages and technologies meant the bank could
seamlessly integrate these tools into its existing systems, enhancing its
ability to respond to emerging risks swiftly.

A FinTech startup utilized Python to develop a robo-advisor platform

offering automated, algorithm-driven financial planning services with little
to no human supervision. Python's simplicity and the extensive selection of
financial libraries allowed the startup to implement sophisticated
investment algorithms that consider the client's risk tolerance and financial
goals to create personalized investment portfolios. Libraries such as
matplotlib and seaborn were used for data visualization, enabling clients to
have interactive, intuitive access to their investment data. This
implementation showcases Python's capability to power innovative
financial products that require complex mathematical computations and
user-friendly interfaces.

An asset management firm adopted Python to optimize its operations, from

portfolio management to client reporting. By leveraging Python's pandas
library for data analysis and Excel integration with the openpyxl library, the
firm automated the generation of client reports, significantly reducing
manual errors and operational costs. Python scripts were also used to
monitor portfolio performance, automate trade orders, and manage assets
more efficiently, demonstrating Python's impact on enhancing operational
efficiencies in asset management.

A proprietary trading firm developed a suite of algorithmic trading

strategies using Python, capitalizing on its ability to process high-frequency
data and execute trades at speed. Using event-driven programming and the
asyncio library, the firm created algorithms that could analyze market data
in real-time and execute trades based on predefined criteria. The flexibility
and performance of Python, combined with libraries like NumPy for
numerical computations and requests for handling HTTP requests to trading
platforms, allowed the firm to stay competitive in the fast-paced world of
algorithmic trading.

These case studies underscore Python's pivotal role in financial innovation,

offering a glimpse into its application across various domains of finance.
From hedge funds leveraging Python for quantitative trading to banks
employing it for risk management, and FinTech startups using it to power
robo-advisors, Python's adaptability, and powerful libraries have made it an
indispensable tool in the financial industry. Through these implementations,
Python has demonstrated its ability to simplify complex financial analyses,
enhance operational efficiencies, and drive the development of cutting-edge
financial technologies.

Advantages of Using Python in Finance

Python's syntax is celebrated for its readability and simplicity, making it an

ideal learning platform for beginners in programming and finance alike. Its
straightforward syntax mirrors that of the English language, allowing
professionals to focus more on solving financial problems and less on the
intricacies of programming. For individuals transitioning from different
fields into finance, Python provides a gentle learning curve, facilitating a
smoother integration into the complex world of financial analysis without
the steep learning curve associated with some other programming
languages.

The Python ecosystem boasts an extensive array of libraries tailored for

data analysis, numerical computations, and machine learning, which are
critical components in financial analysis. Libraries such as NumPy and
pandas offer powerful tools for numerical computing and data
manipulation, enabling analysts to handle vast datasets with ease. For
statistical modeling and machine learning, libraries like SciPy and scikit-
learn provide financial professionals with the means to develop predictive
models, essential for risk management, algorithmic trading, and asset
valuation. Python's rich library ecosystem ensures that financial
practitioners can perform complex analyses and develop sophisticated
models with relative ease.

Python's interoperability with other languages and technologies amplifies

its utility in finance. It can interface seamlessly with C/C++, allowing for
the execution of computationally intensive algorithms without sacrificing
performance. Additionally, Python's compatibility with various data sources
and formats facilitates the integration of diverse datasets, a common
requirement in financial analysis. This flexibility enables firms to leverage
Python across different areas of their operations, from quantitative analysis
and risk management to automatic report generation and trading systems,
ensuring a cohesive and efficient workflow.
Being open-source, Python has fostered a vibrant community of developers
and financial professionals who continually contribute to the enhancement
of its libraries and frameworks. This collaborative environment accelerates
the development of innovative financial applications and keeps Python at
the cutting edge of financial technology. Moreover, the open-source nature
of Python significantly reduces software costs for organizations, making
advanced financial analysis more accessible to smaller firms and individual
practitioners.

In the world of algorithmic trading, Python's capabilities shine brightly. The

language's event-driven programming models, coupled with powerful
libraries for real-time data processing, make it an excellent tool for
developing automated trading systems. Python enables traders to monitor
market movements, analyze financial data in real time, and execute trades at
lightning speed, thereby capitalizing on fleeting market opportunities.
Through libraries such as pandas and event-driven frameworks like
Twisted, Python equips finance professionals with the tools to build
sophisticated trading algorithms that can process and react to market events
as they occur.

Python's scalability is another merit that makes it suited for finance.

Financial institutions deal with an ever-increasing volume of data and
require tools that can scale with their growing needs. Python's ability to
handle large datasets, coupled with its performance optimization
capabilities, ensures that financial applications can grow in complexity and
size without a corresponding increase in processing time or resources.

The financial industry's adoption of Python is not a passing trend but a

testament to the language's robust capabilities and suitability for addressing
the myriad challenges faced by financial practitioners. With its blend of
simplicity, power, and flexibility, Python has democratized financial
analysis, enabling a broader range of professionals to contribute to the
innovation and complexity of financial strategies. As we delve deeper into
the era of digital finance, Python's role as a critical tool in the financial
toolkit is not only secure but poised for greater expansion.

Ease of Learning and Readability

Python's syntax is often lauded for its clarity and simplicity, closely
resembling the natural language we use in daily communication. This
design philosophy reduces the cognitive load on programmers, allowing
them to grasp the basics of programming in Python rapidly. For financial
analysts, who may not have a background in computer science, this means
being able to script basic Python code to automate mundane tasks or
analyze financial datasets with minimal training. The intuitive nature of
Python's syntax also facilitates the debugging process, making it easier to
identify and correct errors, which is crucial in a high-stakes environment
like finance where accuracy is paramount.

Unlike programming languages that require an understanding of complex

concepts from the outset, Python allows newcomers to dive in with basic
tasks and gradually progress to more complex operations. The language
supports various programming paradigms, including procedural, object-
oriented, and functional programming, catering to different levels of
expertise and project requirements. This flexibility ensures that individuals
in the finance sector can start leveraging Python's capabilities early in their
learning journey, progressively enhancing their skills as they tackle more
sophisticated financial models and analyses.

In the fast-paced world of finance, where codes must often be reviewed,

shared, or modified by team members, Python's emphasis on readability is a
significant advantage. Python's syntax encourages the use of white space
and discourages overly complex expressions, which means codes are
cleaner and more organized. Financial institutions that adopt Python can
maintain a codebase that is more understandable for analysts and
developers alike, facilitating collaboration and reducing the risk of errors in
financial computations or analyses.

A significant factor contributing to Python's ease of learning is the vast

array of educational resources available, including comprehensive
documentation, forums, online courses, and books tailored to every
expertise level. The Python community is known for being welcoming and
supportive, offering assistance to both novices and experienced
programmers. For financial professionals venturing into programming with
Python, this community provides a wealth of knowledge and tools to solve
specific finance-related coding challenges, from complex quantitative
models to automated trading algorithms.

Python's approachability has led to its widespread adoption in finance, not

just among quants and data scientists but also among traders, investment
analysts, and risk managers. Its readability ensures that financial models
and analyses are transparent and accessible, enabling better decision-
making and fostering innovation in financial strategies and products.
Moreover, Python scripts can often be easily integrated into existing
financial software and systems, enhancing their functionality and efficiency
without the need for extensive redevelopment.

The combination of Python's ease of learning, readability, and a supportive

community has significantly lowered the barrier to entry for finance
professionals looking to harness the power of programming in their work.
Whether it's automating reports, analyzing vast datasets, or developing
predictive models, Python offers the tools and flexibility to enhance the
efficiency and accuracy of financial operations. As the financial industry
continues to evolve, Python's role in empowering professionals with the
skills to innovate and adapt cannot be overstated, making it a pivotal
language in the toolkit of the modern financial analyst.

Robust Libraries and Frameworks Suitable for Financial Analysis

At the heart of Python's scientific computing stack lies NumPy, a library

that provides support for large, multi-dimensional arrays and matrices,
along with a collection of mathematical functions to operate on these data
structures. NumPy is indispensable in financial analysis for its efficiency in
numerical computations, which is crucial for tasks such as pricing
derivatives, optimizing portfolios, or simulating risk models. Its ability to
handle vast datasets with speed and precision makes NumPy a cornerstone
for high-performance financial computing.

pandas stands out as Python's premier library for data manipulation and
analysis. In the context of finance, pandas excels by offering intuitive
structures for storing and manipulating time series data, which is ubiquitous
in financial applications. Whether it's adjusting financial time series for
corporate actions, performing rolling window calculations on stock prices,
or aggregating transaction data, pandas provides the functionality to make
data manipulation tasks both straightforward and efficient. Its DataFrame
object, in particular, is a powerful tool for managing financial datasets,
allowing for sophisticated indexing, slicing, and pivoting operations that are
essential for thorough financial analysis.

Visualization is a critical aspect of financial analysis, providing insights that

numbers alone cannot. matplotlib and seaborn, two of Python's leading
libraries for data visualization, offer a wide range of functionalities to create
compelling and informative financial charts. From plotting historical stock
prices to visualizing the correlation matrices of asset returns, these libraries
enable analysts to convey complex financial concepts and data patterns in
an accessible and visually appealing manner. seaborn, built on top of
matplotlib, further simplifies the process of creating statistical graphics,
allowing for the creation of rich, informative plots with minimal code.

The advent of machine learning in finance has opened new frontiers for
predictive analytics, and scikit-learn stands at the forefront of this
revolution. Offering simple and efficient tools for data mining and analysis,
scikit-learn is a powerful ally for financial professionals looking to apply
machine learning models to predict market movements, identify trading
signals, or enhance risk management techniques. With its comprehensive
suite of algorithms for classification, regression, clustering, and
dimensionality reduction, scikit-learn equips financial analysts with the
means to uncover patterns and make predictions based on vast datasets,
driving forward the capabilities of financial analysis and decision-making.

QuantLib deserves special mention for its focus on the quantitative finance
community. As a comprehensive library for modeling, trading, and risk
management in real-life, QuantLib facilitates a wide array of financial
calculations and processes, including derivative pricing, interest rate
modeling, and portfolio optimization. Its extensive functionality and open-
source nature make it particularly valuable for quants and financial
engineers engaged in sophisticated financial modeling and analysis tasks.
Python's libraries and frameworks form an ecosystem that is unparalleled in
its capacity to support the complex requirements of financial analysis and
computational finance. By leveraging these tools, financial professionals
can significantly enhance their analytical capabilities, from data
manipulation and visualization to predictive modeling and quantitative
analysis. As the financial industry continues to evolve amidst rapidly
changing markets and increasing data volumes, Python's robust ecosystem
remains a critical asset for innovation and efficiency in financial analysis,
enabling professionals to deliver deeper insights and drive strategic
financial decisions.

Community Support and Resources

The Python community, known for its diversity and inclusivity, is a treasure
trove of knowledge and expertise. Financial analysts, quants, and coders
from various backgrounds contribute to forums, social media platforms, and
special interest groups, making it easier for newcomers to find guidance and
for seasoned professionals to stay abreast of the latest developments.
Platforms such as Stack Overflow and Reddit are bustling with activity,
where practical advice and programming tips are exchanged freely.
Moreover, Python's widespread adoption across industries ensures a broad
base of knowledge, meaning that financial professionals can often find
solutions to domain-specific issues or collaborate on projects that bridge
gaps between fields.

For those new to Python or looking to expand their skill set, the array of
learning resources available is vast and varied. From online courses offered
by platforms like Coursera and Udemy to comprehensive tutorials on
developers' websites, there's no shortage of material to get started or dive
deeper. Additionally, the Python Software Foundation and other entities
regularly host webinars, workshops, and conferences that cater to all levels
of expertise, covering fundamental concepts as well as advanced
applications in finance and beyond. Python's official documentation itself is
an exemplary resource, known for its clarity and thoroughness, guiding
users through intricacies with ease.
Python's strength in finance is amplified by its rich ecosystem of open-
source libraries, which are continually enhanced by contributions from the
community. Libraries such as pandas, NumPy, and QuantLib, central to
financial analysis, benefit from the collective effort of countless individuals
who contribute code, report bugs, and suggest improvements. This
collaborative model ensures that the tools remain at the cutting edge,
incorporating the latest research and innovations. It also means that
financial analysts and quants have the unique opportunity to contribute back
to the projects that facilitate their work, fostering a sense of ownership and
community spirit.

Local meetups and special interest groups provide invaluable opportunities

for networking and learning within the Python community. These
gatherings, often organized through platforms like Meetup.com, enable
finance professionals to connect with peers, share experiences, and discuss
challenges and solutions in a supportive environment. Additionally, PyCon,
PyData, and other specialized conferences offer forums for presenting
research, exploring new tools, and engaging with the broader Python and
financial analytics communities. These events not only facilitate knowledge
sharing but also spark collaborations that can lead to innovative
applications and approaches in financial analysis.

The robustness of community support and the wealth of resources available

to Python users form a foundation that significantly enhances the language's
effectiveness in financial analysis. This ecosystem not only provides the
tools and knowledge necessary for sophisticated financial modeling and
analysis but also fosters a culture of collaboration and continuous learning.
By engaging with the community, leveraging the available resources, and
contributing to the collective knowledge base, financial professionals can
push the boundaries of what's possible in financial analysis, driving
innovation and achieving greater success in their endeavors.

Applications of Python in Finance

At the forefront of Python's applications in finance is the development of

automated trading systems. These systems enable the execution of trades at
speeds and volumes that are humanly impossible, relying on algorithms that
analyze market data in real time to make trading decisions. Python, with its
rich ecosystem of libraries such as pandas for data manipulation and
matplotlib for data visualization, allows traders and quants to backtest
strategies on historical data, optimize trading parameters, and execute trades
with minimal latency. Libraries such as backtrader and pyalgotrade provide
robust frameworks for creating and testing algorithmic trading strategies,
making Python an indispensable tool in the arsenal of modern traders.

Python's prowess extends to financial data analysis, where its ability to

handle large datasets and perform complex statistical analyses comes to the
fore. The use of libraries like NumPy for numerical computing and pandas
for data manipulation enables analysts to sift through vast amounts of
financial data, identifying trends, correlations, and patterns that inform
investment decisions. Whether it's calculating the volatility of stock prices,
analyzing the performance of investment portfolios, or modeling the risk
factors of assets, Python's computational capabilities make it a key player in
data-driven financial analysis.

In the world of risk management, Python's applications are both broad and
profound. Quantitative analysts employ Python to model and assess various
types of financial risks, such as market risk, credit risk, and operational risk.
Libraries like SciPy for scientific computing and statsmodels for statistical
modeling allow for the implementation of complex risk assessment models
and simulations. Python's flexibility enables the development of custom risk
management solutions that can be tailored to the specific needs of financial
institutions, enhancing their ability to mitigate potential losses in volatile
markets.

Python also finds extensive use in portfolio management, where its libraries
support the analysis and optimization of investment portfolios. By
employing algorithms for mean-variance optimization, analysts can use
Python to construct portfolios that maximize returns while minimizing risk,
adhering to the principles of modern portfolio theory. The pandas library, in
conjunction with NumPy, facilitates the management of portfolio data,
enabling the calculation of key metrics such as expected returns, volatility,
and the Sharpe ratio. Furthermore, Python's capabilities allow for the
exploration of alternative investments and strategies, providing portfolio
managers with insights to drive better investment outcomes.

The world of predictive analytics in finance is yet another area where

Python's impact is transformative. Leveraging machine learning libraries
such as scikit-learn and TensorFlow, financial institutions develop models
that predict stock market trends, forecast economic indicators, and
anticipate credit defaults. These predictive models, powered by Python's
machine learning capabilities, offer a competitive edge by providing
insights that inform strategic investment decisions and risk management
practices.

Through its wide-ranging applications in automated trading, data analysis,

risk management, portfolio management, and predictive analytics, Python
has cemented its status as a cornerstone of financial technology. Its
comprehensive libraries, vibrant community, and versatility make it an
invaluable resource for finance professionals seeking to leverage data and
technology for strategic advantage. As the financial industry continues to
evolve in complexity, Python's role in driving innovation and efficiency in
finance is poised to grow, underscoring its importance in shaping the future
of financial analysis and decision-making.

Automated Trading

Automated trading systems, also known as algorithmic trading systems, are

computer programs that execute trades based on predefined criteria without
human intervention. The advent of high-frequency trading (HFT) and
quantitative trading strategies has propelled the development of these
systems, with Python leading as a preferred tool for their creation and
implementation. The language's simplicity, versatility, and rich ecosystem
of financial and mathematical libraries have made it an ideal choice for
developing complex trading algorithms that operate at breakneck speeds.

At the core of an automated trading system lies its algorithm, a set of

instructions designed to perform trading operations based on market data
analysis. These algorithms can range from simple moving average
crossovers to complex machine learning models that predict market
movements. Python, with its extensive libraries like NumPy for complex
mathematical operations and pandas for handling time-series data, provides
a solid foundation for building these algorithms.

One of the first steps in creating an automated trading system is data

collection. Python’s requests library can be used to fetch live market data
from financial APIs, while pandas is utilized to organize this data into a
manipulable format. The next step involves data analysis and strategy
development, where libraries such as matplotlib and seaborn come into play
for visualizing data, helping to uncover underlying trends or patterns.

Before a trading algorithm is unleashed on the market, it must be

backtested. Backtesting involves running the algorithm against historical
market data to evaluate its performance. It is a critical step that helps
identify potential flaws in the strategy. Python's backtrader library provides
a comprehensive framework for backtesting, offering an easy way to
simulate trading strategies over different time periods and market
conditions, thus enabling traders to refine their algorithms for optimal
performance.

With a backtested and refined trading strategy in hand, the next step is
execution. Python’s requests and socket libraries allow for real-time
communication with brokerage APIs, facilitating the automatic execution of
trades. Additionally, the multiprocessing library can be leveraged to
enhance the efficiency of trading algorithms, ensuring that trades are
executed swiftly to capitalize on fleeting market opportunities.

Optimization is an ongoing process in automated trading. Python’s scipy

library offers optimization functions that can fine-tune trading parameters,
such as the size of trades or the timing of entry and exit, to maximize
returns and minimize risks.

While automated trading opens up new opportunities for financial

innovation, it also introduces risks, particularly related to the speed and
autonomy of trade execution. Python's robust error-handling and logging
capabilities are essential for building fail-safes into trading systems,
ensuring they operate within predefined risk parameters. Furthermore,
compliance with regulatory standards is paramount. Python’s versatility
allows for the integration of compliance checks into automated trading
systems, ensuring they adhere to financial regulations.

Automated trading exemplifies the transformative power of Python in the

financial sector. By enabling the rapid development and execution of
complex trading strategies, Python not only democratizes access to
financial markets but also pushes the boundaries of what is possible in
trading. As the financial landscape continues to evolve, the adaptability and
efficiency of Python ensure it remains at the forefront of this revolution,
driving innovation in automated trading and beyond.

Financial Data Analysis

In the world of finance, data reigns supreme—a vast ocean from which
insights and foresights, if properly harnessed, can power the most
innovative financial strategies. Financial data analysis is the compass by
which investors, analysts, and traders navigate the tumultuous waters of the
market. With Python at the helm, the exploration of this vast data universe
becomes not just feasible but also remarkably efficient.

Financial data analysis involves processing, examining, and manipulating

financial data to make informed decisions. From historical stock prices and
volumes to economic indicators and beyond, the scope of financial data is
immense. Python, with its simplicity and powerful data manipulation
libraries like pandas and NumPy, has emerged as a pivotal tool in the
analyst's arsenal. It transforms raw data into meaningful insights, offering
clarity amidst market volatility.

At the heart of financial data analysis is the manipulation of time-series data

—a type of data inherently chronological and pivotal in finance. Python's
pandas library excels in handling such data, providing functionality for
time-based indexing, slicing, and aggregating. This allows for the
meticulous examination of financial trends, cycles, and patterns over time.

Visual representation of data is another cornerstone of financial data

analysis. Here, Python's matplotlib and seaborn libraries shine, enabling the
creation of compelling visual narratives. From simple line charts illustrating
stock price movements to complex heatmaps depicting correlations among
multiple assets, these libraries make data visualization both possible and
powerful.

Consider the task of market sentiment analysis, where the goal is to gauge
the market's sentiment towards a particular stock or sector based on news
articles, social media buzz, and financial reports. Using Python's natural
language processing (NLP) toolkit, such as NLTK or spaCy, one can
automate the extraction of sentiment from vast amounts of text data.
Coupled with machine learning techniques, Python can classify sentiment
as positive, negative, or neutral, providing traders and analysts with a
quantified measure of market sentiment.

Python's role extends beyond data wrangling and visualization into the
world of quantitative analysis. Using libraries like SciPy for statistics and
scikit-learn for machine learning, financial analysts can apply a myriad of
mathematical and statistical models to predict future market behaviors. For
example, regression analysis can reveal the relationship between stock
prices and underlying economic factors, while classification models can
identify potential buy or sell signals.

In today's fast-paced financial markets, the ability to analyze data in real-

time can provide a significant competitive advantage. Python’s robust
ecosystem includes libraries like pytz and datetime for time zone handling
and scheduling, ensuring that financial models run accurately across global
markets. Furthermore, event-driven libraries like Twisted facilitate the
development of systems that respond in real-time to market events, enabling
dynamic and adaptive trading strategies.

As the power of financial data analysis grows, so too does the responsibility
to use it ethically. Python's development community is deeply committed to
ethical coding practices, emphasizing the importance of data privacy and
security. Libraries that handle encryption and secure data storage are
integral to ensuring that financial data analysis tools respect user privacy
and adhere to regulatory standards.
Financial data analysis, propelled by Python, is the backbone of modern
finance. It equips analysts, traders, and financial institutions with the tools
necessary to decipher the complexities of the market. As Python continues
to evolve, its role in financial data analysis is set to expand, promising even
greater insights and innovations. Through Python, the financial industry is
not just analyzing the present; it's forecasting the future, one dataset at a
time.

Risk Management

Risk management in the financial sector is an elaborate dance with

uncertainty, a discipline where the objective is not to eliminate risk but to
understand and manage it within acceptable parameters. In this digital age,
Python emerges as a crucial ally in deciphering the complex patterns of
risk, enabling institutions and individuals to make more informed decisions
under conditions of uncertainty.

risk management involves identifying, assessing, and prioritizing risks

followed by the coordinated application of resources to minimize, monitor,
and control the probability or impact of unforeseen events. In the context of
finance, this encompasses a wide array of risks including market risk, credit
risk, liquidity risk, and operational risk, among others. The ultimate goal is
to safeguard assets while maximizing returns, a task that requires a delicate
balance between risk and reward.

Python's role in risk management is multifaceted, offering tools for data

analysis, simulation, and model development that are unparalleled.
Libraries such as NumPy and pandas provide the foundational elements for
statistical analysis and data manipulation, essential for the initial stages of
risk identification and assessment.

Quantitative risk models, including Value at Risk (VaR), Conditional Value

at Risk (CVaR), and stress testing scenarios, can be efficiently implemented
using Python. These models offer insights into potential losses under
adverse market conditions, guiding strategic asset allocation and risk
mitigation strategies. For instance, implementing a VaR model in Python
allows institutions to estimate the maximum potential loss over a given time
horizon with a specified confidence interval, a crucial metric for managing
market risk.

Monte Carlo simulations, a cornerstone of financial risk management, are

readily accessible through Python's ecosystem. Tools like SciPy and
specialised libraries such as PyMC3 enable risk managers to simulate
thousands of potential market scenarios, providing a probabilistic view of
future asset values and risk exposure. This method is particularly valuable
for assessing the impact of extreme market events, offering a dynamic and
nuanced understanding of risk that static models cannot capture.

Python's machine learning capabilities, powered by libraries such as scikit-

learn, TensorFlow, and Keras, represent the cutting edge in risk
management. These tools can uncover hidden patterns in financial data,
predict market movements, and identify early warning signs of financial
distress. Machine learning models are invaluable for credit risk assessment,
allowing financial institutions to predict the likelihood of default more
accurately than traditional statistical methods.

As Python propels financial risk management into new territories of

efficiency and insight, ethical considerations come to the fore. The use of
personal data for risk assessment, particularly in credit scoring and
insurance underwriting, raises important questions about privacy, bias, and
fairness. Python's community, known for its commitment to ethical
technology use, is actively engaged in developing best practices for data
privacy and algorithmic transparency in financial applications.

To harness Python's full potential, it is crucial for risk management

professionals to integrate Python-based tools into their existing risk
frameworks. This entails not only technical proficiency but also a strategic
vision to leverage Python's capabilities for data-driven decision-making. As
Python continues to evolve, staying abreast of the latest developments in
libraries and techniques will be key to maintaining a competitive edge in
risk management.

In the intricate domain of financial risk management, Python has emerged

as an indispensable resource. Through its powerful libraries and machine
learning capabilities, Python provides risk professionals with the tools to
model, analyze, and mitigate risks in an increasingly volatile financial
landscape. As we look to the future, the role of Python in shaping risk
management strategies is poised to grow, offering new avenues for
innovation and insight in the perpetual quest to balance risk and reward.
 CHAPTER 2: SETTING UP
YOUR PYTHON
ENVIRONMENT

E
mbarking on the journey of Python programming within the financial
sector transcends mere technical skill—it's a strategic move towards
leveraging computational power for complex financial analyses and
strategies. The installation of Python marks the inception of this
transformative journey. Python, with its simplicity and vast ecosystem,
stands as the cornerstone for developing sophisticated financial models,
algorithmic trading strategies, and data analysis frameworks.

Before diving into the installation process, it's pivotal to select the
appropriate version of Python. The Python programming landscape is
predominantly dominated by two major versions – Python 2.x and Python
3.x. For financial computing, Python 3.x is the recommended path due to its
enhanced features, improved syntax, and broader library support. The
evolution of Python has seen a significant shift towards Python 3.x, making
it the de facto choice for new projects and developments in the financial
analysis realm.

The versatility of Python allows it to run on almost any system architecture,

making it accessible to a wide array of users across different platforms.
Here's a concise guide tailored for the installation of Python on major
operating systems:
Windows: world The installation on Windows involves downloading the
executable installer from the official Python website. This installer provides
a straightforward setup process, including options for adjusting installation
paths and selecting specific features such as the addition of Python to the
PATH environment variable, which facilitates the execution of Python from
the command line.

macOS: world macOS users can install Python using the package available
on the Python website or through package managers like Homebrew. The
latter approach is often favored by developers for its ease of managing
multiple Python versions and associated packages.

Linux: world Most Linux distributions come with Python pre-installed.

However, to ensure the use of the latest version, users can install Python
using their distribution’s package manager (e.g., apt for Debian/Ubuntu or
yum for Fedora). This method also simplifies the management of
dependencies and modules.

Once Python is installed, verifying the installation is a critical next step.

This can be achieved through the command line or terminal by executing:

```

python --version

```

This command should return the version of Python installed, confirming the
successful setup of the Python environment. Additionally, entering the
Python REPL by simply typing `python` in the command line allows users
to interactively execute Python commands, serving as further validation of a
successful installation.

With Python installed, the groundwork is laid for delving into the vast
world of financial programming. The subsequent steps involve setting up a
development environment tailored to financial analysis, exploring Python
libraries essential for financial computations, and ultimately, harnessing
Another random document with
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 —en poco tiempo te he dicho
lo que passò en mucho tiempo.
CALDERON, EL MAESTRO DE DANZAR.

I'll range the plenteous intellectual field,

And gather every thought of sovereign power
To chase the moral maladies of man;
Thoughts which may bear transplanting to the skies,
Nor wholly wither there where Seraphs sing,
Refined, exalted,—not annull'd—in heaven.
YOUNG.

Let every man enjoy his whim;

What's he to me, or I to him.
CHURCHILL.

And whereas I may seem too smart or satyrical in some particular

places, I do not at all repent me, as thinking what is said to such ill-
deserving persons much too little.

THOMAS MACE.

—Play the fool with wits,

'Gainst fools be guarded, 'tis a certain rule
Wits are safe things; there's danger in a fool.
CHURCHILL.

And in this thought they find a kind of ease,

Bearing their own misfortune on the back
Of such as have before endured the like.
RICHARD II.
Our life indeed has bitterness enough
To change a loving nature into gall:
Experience sews coarse patches on the stuff
Whose texture was originally all
Smooth as the rose-leaf's, and whose hues were bright
As are the colours of the weeping cloud
When the sun smiles upon its tears.
MRS. LENOX CONYNGHAM.

Thus much we know, eternal bliss and pure,

By God's unfailing promise, is secure
To them who their appointed lot endure
Meekly, striving to fulfil,
In humble hopefulness, God's will.
MRS. LENOX CONYNGHAM.

I thowt how hard it is to denye

A ladye's preyer, wych after the entent
Of the poete is a myghty comaundement;
Wherfore me thoht as in this caas
That my wyt war lakkyd bettyr it was
That my wyl, and therfore to do
My ladyes preyer I assentyd to.
OSBERN BOKENAM.

Al peco de los años

lo eminente se rinde;
que à lo facil del tiempo
no ay conquista dificil.
CALDERON.
 We only meet on earth
That we may know how sad it is to part:
And sad indeed it were, if in the heart
There were no store reserved against a dearth,
No calm Elysium for departed Mirth,
Haunted by gentle shadows of past pleasure,
Where the sweet folly, the light-footed measure,
And graver trifles of the shining hearth
Live in their own dear image.
HARTLEY COLERIDGE.

Sweet are the thoughts that smother from conceit:

For when I come and sit me down to rest,
My chair presents a throne of majesty;
And when I set my bonnet on my head,
Methinks I fit my forehead for a crown;
And when I take a truncheon in my fist,
A sceptre then comes tumbling in my thoughts.
ROBERT GREENE.

Quandquam verò hoc mihi non polliceri possum, me ubique

veritatem quam sectatus sum, assecutum esse; sed potius eo fine
ea proposui, ut et alios ad veritatis investigationem invitarem: tamen
ut rectè Galenus habet, τολμητέον τε καὶ ξητητεὸν τὸ ἀληθὲς, εἰ γὰρ
καὶ μὴ τύχομεν αὐτοῦ πάντως, δήπου πλησιέστερον ἢ νῦν ἐσμὲν
ἀφιζόμεθα. Audendum est, et veritas investiganda, quam etiamsi non
assequamur, omnino tamen propius quam nunc sumus, ad eam
perveniemus. Quo verò ego animo ad scribendum accessi, eo ut alii
ad legendum accedant, opto.

SENNERTUS.

I do confess the imperfect performance. Yet I must take the boldness

to say, I have not miscarried in the whole; for the mechanical part of
it is regular. That I may say with as little vanity, as a builder may say
he has built a house according to the model laid down before him, or
a gardener that he has set his flowers in a knot of such or such a
figure.

CONGREVE.

As wheresoever these leaves fall, the root is in my heart, so shall

they have ever true impressions thereof. Thus much information is in
very leaves, that they can tell what the Tree is; and these can tell you
I am a friend and an honest man.

DONNE.

On ne recognoistroit les monts, sans les valees;

Et les tailles encor artistement meslees
En œuvre mosaÿque, ont, pour plus grand beauté,
Divers prix, divers teint, diverse quantité.
Dieu veuille qu'en mes chants la plus insigne tache
Semble le moucheron qu'une pucelle attache
A sa face neigeuse, et que bien peu d'erreurs
Donnent lustre aux beaux traicts de mes hautes fureurs.
DU BARTAS, LA MAGNIFICENCE.
 Hills were not seen but for the vales betwixt;
The deep indentings artificial mixt
Amid mosaicks, for mere ornament,
Have prizes, sizes and dyes different.
And, Oh, God grant, the greatest spot you spy
In all my frame, may be but as the fly,
Which on her ruff, (whiter than whitest snows)
To whiten white, the fairest virgin sows,
(Or like the velvet on her brow, or like
The dunker mole on Venus' dainty cheek,)
And that a few faults may but lustre bring
To my high furies where I sweetest sing.
SYLVESTER.

Be as capricious and sick-brained as ignorance and malice can

make thee, here thou art rectified; or be as healthful as the inward
calm of an honest heart, learning, and temper can state thy
disposition, yet this book may be thy fortunate concernment and
companion.

SHIRLEY.

Humble and meek befitteth men of years,

Behold my cell, built in a silent shade,
Holding content for poverty and peace,
And in my lodge is fealty and faith,
Labour and love united in one league.
I want not, for my mind affordeth wealth,
I know not envy, for I climb not high;
Thus do I live, and thus I mean to die.
ROBERT GREENE.

The events of to-day make us look forward to what will happen to-
morrow; those of yesterday carry our views into another world.
 DANBY.

Mine earnest intent is as much to profit as to please, non tam ut

populo placerem, quam ut populum juvarem: and these my writings
shall take, I hope like gilded pills, which are so composed as well to
tempt the appetite and deceive the palate, as to help and medicinally
work upon the whole body. My lines shall not only recreate, but
rectify the mind.

BURTON.

—Sit thou a patient looker on;

Judge not the play, before the play is done,
Her plot has many changes; every day
Speaks a new scene, the last act crowns the play.
QUARLES.

Lord, if thy gracious bounty please to fill

The floor of my desires, and teach me skill
To dress and chuse the corn, take those the chaff that will.
QUARLES.

Je n'ay pas plus faict mon livre, que mon livre m'a faict,—livre
consubstantiel à son autheur.

MONTAIGNE.

—se le parole che usa lo scrittore portan seco un poco, non dirà di
difficultà, ma d'acutezza recondita, et non cosi nota, come quelle che
si dicono parlando ordinariamente, danno una certa maggior
auttorità alla scrittura, et fanno che il lettore va piu ritenuto, et sopra
di se, et meglio considera, et si diletta dell' ingegno et dottrina di chi
scrive; et col buon giudicio affaticandosi un poco gusta quel piacere,
che s'ha nel conseguir le cose difficili. Et se l'ignorantia di chi legge è
tanta, che non posse superar quella difficultà, non è la colpa dello
scrittore.
 CASTIGLIONE, IL CORTIGIANO.

Certo estava eu que o Doutor sabia de tudo o que disse, nao só os

termos e fundamentos, mas acuda o mas difficultoza, e substancial;
—mas o praticar dellas de modo, que eu as entendesse, he graça
de seu saber, e naõ sufficiencia do meu ingenho.

FRANCISCO RODRIGUES LOBO.

Sir, Our greatest business is more in our power than the least, and
we may be surer to meet in Heaven than in any place upon earth;
and whilst we are distant here, we may meet as often as we list in
God's presence, by soliciting in our prayers for one another.

DONNE.

Or ti riman, Lettor, sovra 'l tuo banco,

Dietro pensando a ciò che si preliba,
S'esser vuoi lieto assai prima che stanco.
Messo t'ho innanzi; omai per te li ciba;
Che a se ritorce tutta la mia cura
Quella materia ond'io son fatto scriba.
DANTE.

I have been often told that nobody now would read any thing that
was plain and true;—that was accounted dull work, except one
mixed something of the sublime, prodigious, monstrous, or
incredible; and then they would read the one for the sake of the
other.—So rather than not be read, I have put in a proportionable
little of the monstrous. If any thing be found fault with, it is possible I
may explain and add.

HUTCHINSON.
 Who seeketh in thee for profit and gain
Of excellent matter soon shall attain.
T. H.

Pay me like for like; give me good thoughts for great studies; and at
leastwise shew me this courtly courtesy to afford me good words,
which cost you nothing, for serious thoughts hatched up with much
consideration. Thus commending my deserts to the learned, and
committing my labour to the instruction of the ignorant, I bid you all
heartily farewell.

LAZARUS PIOT.

Even at this time, when I humbly thank God, I ask and have his
comfort of sadder meditations, I do not condemn in myself that I
have given my wit such evaporations as these.

DONNE.

L'ENVOY.

Gentle Reader—for if thou art fond of such works as these, thou are
like to be the Gentleman and the Scholar—I take upon me to
advertise thee that the Printer of THE DOCTOR, &C. is William Nicol of
the Shakspeare Press—the long tried Friend of the lamented
Southey, and of their mutual Friend, the late Grosvenor Bedford, of
Her Majesty's Exchequer—
 Felices animæ, et quales neque candidiores
Terra tulit!

The Sonnet following, Gentle Reader, I do thee to wit, is the

composition of the above kind hearted and benevolent William Nicol
—and I wish it to be printed, because on Grosvenor Bedford's last
short visit to Southey in 1836, he expressed himself much pleased
with it. May be, if thou art fond of the gentle craft, it may please thee
too, and so I wish thee heartily farewell!

Who wrote THE DOCTOR? Who's the scribe unknown?—

Time may discover, when the grave has closed
Its earthy jaws o'er us, who now are posed
To father that which greatest pen might own;
Learning diffuse, quaint humour, lively wit,
Satire severe and bold, or covert, sly,
Turning within itself the mental eye
To fancies strange that round its orbit flit,
Unknown to others and by self scarce seen;
Teaching, in sweetest English, England's plan,—
When England was herself, her laurels green—
Honour to God and charity to man:
Who wrote the Doctor? her best Son, I ween,
Whether his works, or his fair life you scan.

THE EDITOR.

W. NICOL, 60 PALL-MALL.
*** END OF THE PROJECT GUTENBERG EBOOK THE DOCTOR,
&C., VOL. 7 (OF 7) ***

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