This title is getting 5 starts simply because there's no where else this information is in written down. (At least not outside the internal and highly guarded libraries of proprietary trading groups and hedge funds.)
So the book is a guide and a workbook for making a trading strategy. A coherent strategy that seasoned professionals won't laugh at you for in case you're trying to talk them in to letting you run your own show, or borrow money. You can say: "But look, my nonstationary timeseries have been transformed to log returns, the pairs trade is cointegrated, I've used total least squares regression to find the hedge ratio, and look at this risk, this Sortino ratio is gorgeous!"
On the good side the book is full of Notes, References and Tutorial suggestions. The Notes have a separate section from the References and the Tutorial and other suggestions are in the text. It's a thoughtful style in case you want to jump off an learn more about hedge ratios, or if you want more information on an R package...
On the bad side I'll have to complain for a moment about the section on Backtesting. It's a bit rushed. Backtesting often results in a false positive - that is, your backtester tells you the strategy is profitable when really, it's not. There needs to be a discussion on when to stop the strategy. The other side of a backtesting result are false negatives. This is almost never discussed anywhere: It's when your backtesting results in a loss but in real life the strategy would've been a winner. (A useful test of a backtester is to give it a winning strategy and see what it spits back at you.)
One of the exciting things about any book is where you can go and what you can do after you've read it. After working through Quantitative Trading with R you'll be free to chose any number of successful career paths. The book would even be highly useful for not only the aspiring Quant but for operations managers, IT professionals servicing quantitative traders, and even trading group managers who've fallen behind the technology curve.
Oh, one last thing... A valuable, in fact highly valuable secret of proprietary trading groups is revealed in the book. It's importance is left as a footnote: See Chapter 8 Note #5. (To get theoretical prices which exclude the noise of the bid-ask bounce even more, look beyond the top of the book. ;)
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