This is an introduction by Ram of Dawn Analytics. This was presented in a Meetup group at meetup.com/ File can be found at Free Intro to R statistic programming with complete download of Microsoft Powerpoint and accompanying R script files #rstats #free Files can be downloaded at http://quantlabs.net/blog/2012/11/free-intro-to-r-statistic-programming-with-complete-download-of-microsoft-powerpoint-and-accompanying-r-script-files-rstats-free/

1. An Introduction to R
for Traders
Ram Venkat
Dawn Analytics

2. R environment
• R is an open source environment for statistical
computing
• An Integrated environment for data manipulation,
calculation and graphical output
• R is also a dynamic and object-oriented
programming language
• Standard install consists of around 30 core
packages that cover most common statistical and
other tasks
• CRAN contains over 4000 contributed packages
and it is growing

3. R , RStudio installation
• Both R and RStudio are available in
Windows, Mac, unix and Linux
• R installation instruction : http://cran.r-
project.org/doc/manuals/R-admin.html
• Rstudio is a free open source IDE for R, we
will be using Rstudio for this tutorial
• RStudio can be downloaded from
http://rstudio.org/download/

4. R packages and sample
datasets
• Installing an R package:
e.g >install.packages(“quantmod “)
• “quantmod” is package for trading and we
will be using this for this tutorial
• Using quantmod to load some basic data
• Using in-built data sets of R

5. R as an object-oriented
language
• Everything is an Object in R
• A brief look at an R program
• Calling R programs in batch mode
• R functions and packages
http://www.r-bloggers.com/create-an-r-package-
in-under-6-minutes/
• Calling R from other languages
• R Programming Model
• Parallel R

6. R Objects and classes
• Core Objects
– Vector
– List
– Functions
• Other Objects
Matrix
– Array
– Data Frames
– Factors

7. Data inputs and Data Cleaning
• Through package interfaces
• From CSV
• From Databases
• Excel interface
• Data Cleaning facilities

8. R Graphics
• graphics, lattice and grid packages
• graphics Package charts:
– barplot,dot chart,histogram,density
plots,strp charts, quantile plots, scatter
plots, image plots, contour plots,
interaction plots, sunflower plots
• Lattice splits a chart into different panels
or groups , making multiple plots on same
page easy

9. Statistical computing
• Data Analysis : Summary, Correlation, principal
Component Analysis, Factor Analysis
• Time Series
• Probablity Distributions
• Statistical tests
• Regression Models
• Classification Models
• Clustering

10. quantmod package
• “A rapid prototyping environment, where
quant traders can quickly and cleanly
explore and build trading models. “
• Quantmod example on data handling
• Quantmod example on charting
• Quantmod example on modelling
• For more : www.quantmod.com/examples/

11. Other packages of interest to
Traders
• R-sig-finance is your best bet to keep
track of the packages:
https://stat.ethz.ch/pipermail/r-sig-finance/
• Other packages mentioned frequently :
Rmetrics(fportfolio),portfolio,
Rglpk_solve_LP (portfolio optimization)
• Broker-specific: Ibrokers (IB)

12. R Books and Tutorials
• Book - “R in a Nutshell” by Joseph Adler (O'Reilly)
• cran-R “An introduction to R”
http://cran.r-project.org/doc/manuals/R-intro.html
• Quck-R site : http://www.statmethods.net/ gives
a discount on the book “R in Action” from
Manning
• R and time-series:
http://www.stat.pitt.edu/stoffer/tsa3/

13. Thank You
For any clarification, send e-mail to
ram@dawnanalytics.com