Is Python or R Better for Algorithmic Trading?

2020-08-03

There's a long answer to this question, and I'll get around to it. But the first thing you have to know is this: do not be afraid of learning new programming languages.

I think a ton of these conversations are colored by people who feel like they want to learn one language and have it be all things for them forever. That's just the wrong way to think about it. You are already learning hundreds of things about the market just to stay above water and are potentially already well-versed in machine learning or advanced statistics.

Needing to learn both Python and R will not kill you.

And the long answer is? Well, for algorithmic trading, you'll probably ultimately have to learn both at some point. So the question you must really ask is: should I learn Python or R first?

That ultimately depends on your current strengths.

Assuming a stronger mathematical background, I think you should dive head-first into R. RStudio is an amazing environment to quickly throw together models and run experiments on your data. You'll find that R was made for you, and you will feel completely at home. Once you have your first strategy worth trading, you will work your way outward and find tons of resources to help you integrate with the brokers and the markets you need.

However, if you are coming from a predominantly trading-oriented background, Python and its ecosystem will let you hit the ground running with tons of pre-built trading platforms. The broader Python community is also hacker-rich, and you will find countless resources to get you trading immediately.

Food for thought, and while you're at it, go ahead and be even more confused because this stuff's written in MATLAB.

https://www.indicativequant.com/offers/algorithmic-trading-chan