[Solved] COMS4995 Homework 4-Quantopian practice

1. Explore alternative fundamental factors, and extend the original program with your new fundamentalfactors.2. Evaluate your factors and the original factors of the lecture using Alphalens full tear sheet based onreturn, information analysis, and turnover. Analyze your results (you do not have to explain every graphand every indicator. It is enough if you discuss your results in about half page).3. Implement a trading algorithm using your selected factors, and backtest with Quantopian.Build the following table based on the performance tab of Quantopians backtest facility:Using original factors Using your factorsTotal ReturnsSpecific ReturnsCommon ReturnsSharpeMax DrawdownVolatilityChanges introduced in the simulations4. Include a graph as the following for the two simulations:5. Discuss the results of your algorithm when you run it with the original factors and with yourselected factors (about 1 page without including graphs or tables). Explain why your results arebetter, equal or worse than the simulation using the original factors.6. Conclusions. What did you learn from this exercise? How can you improve your algorithmfor a future test? (you do not have to run an extra test, this is only a discussion). (about halfpage)Your final submission should include a report in word or a pdf file where you answer the abovequestions and report on your simulations, and the python file(s) of your final simulations withthe original factors and your own factors.