Question: What is best for backtesting? R language or Matlab/Scilab/Octave?

(Last Updated On: June 30, 2010)

Question: What is best for backtesting? R language or Matlab/Scilab/Octave?

As for backtesting, it seems Matlab and its open source equivelants of SciLab and Octave are definitely the standards. I also know the tools of Scilab and Octave are very compatible to Matlab. We also know that Matlab is the industry standard for researching and building backtests for Quant models and strategies. I shall start looking into this for sure. I also need to figure out how to capture market data and build strategies with it.
I was planning to use something like Active Quant which was Java based but it proved to be frustrating to get started with. So I have now decided to go with something else. This becomes Matlab or R. I would love to use Matlab but who can afford the thousands they charge to get started. Also, can capture Market feeds like Bloomberg or Reuters. Or better yet interface with Interactive Brokers. This is where ActiveQuant would have been good. I also need to research this farther on this. Comment below if you know.
The R language seems to building steam very quickly as a research tool. It is very open source but I need to also do further research on its capabilities. Both Matlab and R are becoming standard for researching, modelling, and strategies in the world of Quant. I am hoping to accomplish this too.

I have so much more to learn. I would love to go to some well known university for both an advanced degree like a Masters of Finance or PHD. I would need to bone up in both technologies if I am going scale my knowledge in this world of Quant.
If you have any advice on how to proceed, let me know. I will still gladly use QuantLib for my C++ and QuantLibXL or other Excel integrated libarary to proceed. I do think Java is also standard in the world of Quant but sadly, ActiveQuant is not one of them YET!

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
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