Farhan Khalid

• The technical analysis of the trading in stock and financial markets, whether in traditional stocks or cryptocurrencies, is driven by strategies and indicators, where backtesting is an essential tool for evaluating these strategies by applying them to historical data. It allows traders to assess the performance of strategies such as the relative strength index (RSI), stochastic RSI, moving averages, Bollinger bands, MACD (moving average convergence divergence), Pi cycle indicator, and Fibonacci retracement levels. These strategies are commonly applied in both the stock and cryptocurrency markets, making their analysis highly relevant in the current financial landscape. The objective is to determine their profitability, risk-adjusted returns, and reliability. The dynamic and volatile nature of financial markets, which encompass both traditional stocks and cryptocurrencies, requires robust methods for evaluating trading strategies. Backtesting, an essential tool in financial analysis, enables traders and researchers to simulate the performance of trading strategies based on historical data. This process not only tests the viability of strategies but also provides insights into their potential profitability and risk. By applying strategies to historical market data, traders can identify patterns, assess their robustness, and make informed decisions before applying them in live markets.