TLDR: Interactive backtesting framework for trading strategies using Streamlit, Backtrader, and Yahoo Finance. Implements Luca's Strategy with data caching, moving averages, and crossover techniques for actionable insights.

Luca's Backtesting Strategy

This repository contains the implementation of Luca's Strategy, a backtesting framework designed to evaluate trading strategies using historical stock data. The application is built with Streamlit for an interactive user interface, Backtrader for simulation and strategy development, and Yahoo Finance for data retrieval. The repository demonstrates how to integrate data caching, moving averages, and a crossover strategy to provide actionable insights for trading decisions.

File Overview

firo_ui.py

This file acts as the user interface and core logic of the system, enabling users to:

• Select a portfolio of stocks.
• Define backtesting parameters, such as duration, budget, and take-profit percentage.
• Visualize stock performance and backtesting results.
• Execute Luca's Strategy, a custom trading strategy built on moving average crossovers, with configurable parameters like take-profit levels.

requirements.txt

This file contains the list of dependencies required to run the application.

About Luca's Strategy

The strategy utilizes a combination of moving averages (7-day, 14-day, and 38-day) and crossovers to identify optimal buy and sell signals.

• Buy Signal: Triggered when a short-term moving average crosses above a longer-term moving average, indicating an uptrend.
• Sell Signal: Positions are exited upon reaching the defined take-profit percentage.

The logic is implemented within a Backtrader-compatible strategy class, TestStrategy.

How to Run the Application

1. Install the required dependencies listed in requirements.txt:

   pip install -r requirements.txt