Business Analytics iCademy: Algorithmic Trading in R

In this course we focus on data analytics in finance. First, we introduce modern portfolio theory. This theory attempts to analyze the interrelationship between different investments and identify the mix of assets that will maximize the expected returns for a given level of risk. We will also introduce you to algorithmic trading, which is basically a set of rules that are given to a computer using trend analysis techniques. This type of trading strategy can be useful because it removes emotional responses from individuals. It’s also useful because of the speed at which it can be implemented. We will show you how to use R to get stock data and perform useful calculations related to modern portfolio theory. Finally, we will illustrate how to use R to identify when to change positions using a trend-following strategy, and how you can backtest that strategy to evaluate its profitability. Learning Outcomes - Explain the benefits of diversification - Backtest an algorithmic trading strategy in R - Recognize four algorithmic trading strategies - Understand modern portfolio measurements: expected return, risk and volatility, and the Sharpe Ratio - Identify opportunities for making investment opportunities through identifying risks and returns and through visualizing efficient frontiers