All language subtitles for 3. Create a simple moving average (SMA)

Hi, everyone, and welcome in this new video.

In this video, I will show you how to create a simple, moving average using pandas.

So first, we're going to create a new colors in or dataframe, which is named as semi for simple moving

average 15, because we're going to take a simple moving average on 15 days.

Then we need to take the clothes column of our data frame.

Then we use the rolling function to create a wall on the 15 day.

And.

All 15, then we want to apply the mean function.

So we do exactly the same for the Assembly 16.

And I will show you all the different.

I will just create.

A very lethal estimate to show you something extremely important.

Have advocated the semi free state, so it's very not relevant for all strategy, but it is really just

to show you something extremely important here.

We need to put a shift on all indicators because if you look the estimate free days, we can see that

this mean is the average of these three values and.

If the cruise price, for example, is the targets, we will have an interference in our data because

if we take this value to protect this value, so this value is already in the average.

So theoretically, when you are going to be tested, you will have an amazing result.

You will have a strategy very profitable.

But in reality, it is because you predict the past using the future.

So it is the most important thing to understand because this error is one of the must made.

So for example, if here I put a shift.

We can see that this value is the mean of these values.

So there is no issue if I want to predict this value with this value because we have put a shift in

our data and very are no interference between the SMI free days and the cruise price that we want to

predict.

So we are going to delete this

columns.

But I would devote once that you understand this notion because

if you don't put the shift in the right place, you will have many issues in.

You could and your anger with trading project.

Now, let me just show you how to display this value to have a better understanding.

To do it, we are going to use the plug function directly from pundits.

Because it's more easy to use when you just want to display some metrics.

Then we just use the let property to display the value in 2010 to have a better visualization.

So as we can see, we have the cruise price here and all too simple moving average.

So it is awful this video and in the next video, I will show you, how did you quit moving standard

deviation?