Study: Buy AJANTPHARM when RSI is above 50 and there is Bullish Crossover in MACD

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In this study, we evaluate the performance of strategy "Buy AJANTPHARM when RSI is above 50 and there is Bullish Crossover in MACD" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy AJANTPHARM at the closing price whenever the signal triggers (Rs. 2Lac per trade). Then cover the position "X" trading days later at close_price i.e. sell after "X" trading days. Here are the results of this study:

X DaysNet ProfitTotal TradesWinning TradesLosing Trades% ProfitableAvg Winning TradeMax Winning TradeAvg Losing TradeMax Losing TradeWin/Loss RatioProfit FactorSharpe RatioAvg Trade
1103727112535947.325221.0638021.98-2932.02-14246.361.781.60.035926.13
2201193112535947.328781.4685714.29-4478.38-18811.491.961.760.0371796.37
3329897112605253.579593.18107253-4724.88-18968.912.032.340.0522945.51
4254091112585451.7910830.1578021.98-6926.99-26073.131.561.680.0392268.67
5239300112585451.7911787.9299560.44-8229.61-24165.341.431.540.0312136.61
6206413112535947.3213165.0596483.52-8327.71-25423.061.581.420.0271842.97
7211896112545848.2114394.97120000-9748.84-28807.561.481.370.0251891.92
824222811256565014830.899780.22-10505.3-28934.821.411.410.0282162.75
9316962111545748.6517064.6986593.41-10605.82-38261.791.611.520.0342855.51
10355718111595253.1516873.994065.93-12304.66-45045.051.371.560.0373204.67

From the table above, we see that best results are achieved by holding positions for 3 trading days. Profit factor is 2.34. Strategy is showing mildly bullish results but we advice not to take a call solely on the basis of this study. Percentage of profitable trades is 53.57%, which is not acceptable. Avoid this strategy. Average return per trade is 1.47%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.052, which is low, don't trade solely on the basis of this study.
In the chart below, we plot cumulative trade gain versus trades. This chart is important and informative as it shows the performance of strategy over time.
AJANTPHARM Performance, X=3, Profit Factor:2.34

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019308 Jan 2019 (-1.11%), 16 Apr 2019 (-0.44%), 03 Jun 2019 (-4.42%)
2018622 Jan 2018 (-6.0%), 26 Feb 2018 (-1.9%), 13 Mar 2018 (1.84%), 04 Jul 2018 (-0.33%), 23 Jul 2018 (0.03%), 19 Dec 2018 (1.55%)
2017402 Jan 2017 (-1.9%), 08 Feb 2017 (2.4%), 14 Mar 2017 (2.31%), 08 Dec 2017 (-1.8%)
2016719 Feb 2016 (3.4%), 08 Apr 2016 (1.23%), 16 May 2016 (-0.91%), 07 Jun 2016 (-1.2%), 01 Jul 2016 (4.18%), 23 Sep 2016 (1.52%), 28 Oct 2016 (-4.1%)
2015813 Jan 2015 (-0.04%), 28 Jan 2015 (-5.41%), 13 Feb 2015 (1.36%), 06 Apr 2015 (9.49%), 20 May 2015 (4.1%), 24 Jun 2015 (-2.02%), 17 Jul 2015 (-1.56%), 06 Aug 2015 (2.87%)
2014721 Jan 2014 (-0.34%), 23 Apr 2014 (-1.04%), 03 Jun 2014 (5.77%), 24 Jul 2014 (-0.79%), 26 Aug 2014 (0.07%), 10 Sep 2014 (3.3%), 22 Oct 2014 (3.42%)
2013707 Jan 2013 (-1.97%), 07 Mar 2013 (4.88%), 03 Apr 2013 (1.54%), 29 Apr 2013 (-0.56%), 02 Jul 2013 (6.17%), 03 Sep 2013 (8.31%), 28 Oct 2013 (5.65%)
2012714 Mar 2012 (1.13%), 23 May 2012 (11.06%), 21 Jun 2012 (4.12%), 02 Aug 2012 (-2.98%), 17 Aug 2012 (9.57%), 11 Sep 2012 (-1.07%), 25 Oct 2012 (-5.21%)
20111021 Jan 2011 (0.37%), 16 Feb 2011 (-3.16%), 03 Mar 2011 (0.4%), 25 Mar 2011 (0.2%), 16 May 2011 (-5.19%), 31 May 2011 (-0.14%), 07 Jul 2011 (0.24%), 30 Aug 2011 (1.77%), 12 Oct 2011 (-1.61%), 29 Nov 2011 (4.53%)
2010720 Jan 2010 (2.67%), 10 Feb 2010 (2.84%), 15 Mar 2010 (-1.23%), 01 Jun 2010 (1.37%), 12 Jul 2010 (-2.12%), 20 Aug 2010 (-1.4%), 18 Oct 2010 (1.95%)
2009703 Feb 2009 (1.8%), 12 Mar 2009 (-0.39%), 08 May 2009 (-1.86%), 25 Sep 2009 (-0.81%), 21 Oct 2009 (-3.73%), 16 Nov 2009 (-2.46%), 18 Dec 2009 (0.13%)
2008331 Mar 2008 (-1.8%), 17 Jun 2008 (-7.26%), 08 Sep 2008 (0.47%)
2007401 Feb 2007 (6.98%), 15 Mar 2007 (-1.46%), 05 Jun 2007 (0.22%), 05 Dec 2007 (0.32%)
2006516 Jan 2006 (-4.42%), 20 Jun 2006 (4.98%), 26 Jul 2006 (-3.93%), 11 Aug 2006 (-3.21%), 05 Oct 2006 (3.42%)
2005604 Apr 2005 (-0.23%), 03 May 2005 (6.16%), 01 Jun 2005 (7.88%), 11 Jul 2005 (-2.67%), 31 Aug 2005 (11.05%), 12 Dec 2005 (-3.93%)
2004813 Feb 2004 (-0.19%), 16 Jul 2004 (1.08%), 10 Aug 2004 (3.11%), 30 Aug 2004 (-2.72%), 27 Sep 2004 (2.42%), 01 Nov 2004 (13.48%), 25 Nov 2004 (-4.25%), 14 Dec 2004 (-3.26%)
2003616 Jan 2003 (-0.28%), 27 May 2003 (5.92%), 30 Jun 2003 (18.95%), 28 Jul 2003 (-0.11%), 28 Aug 2003 (53.63%), 01 Dec 2003 (11.14%)
2002408 Apr 2002 (1.66%), 10 May 2002 (6.75%), 11 Jun 2002 (2.16%), 08 Jul 2002 (-2.42%)
2001205 Oct 2001 (2.38%), 20 Nov 2001 (4.14%)
2000110 Nov 2000 (-9.48%)

Strategy Analysis - Exit Criteria

In the study above, exit criterion was that hold the position for "X" trading days. That's one possible exit criterion. However, we can have more elaborate exit criteria. Now we study this strategy under other exit criteria. There are 3 things which you must get to know before proceeding further. Table below shows the performance of this strategy under various exit combinations. Note that nil,nil,-1 is a special exit combination where we just take the best result of "X" Analysis study above.

Stop LossAdjust Stop LossTargetAvg Holding PeriodNet ProfitTotal TradesWinning TradesLosing Trades% ProfitableAvg Winning TradeMax Winning TradeAvg Losing TradeMax Losing TradeWin/Loss RatioProfit FactorSharpe RatioAvg Trade
nilnil-13329897112605253.579593.18107253-4724.88-18968.912.032.340.0522945.51
atrnil38.27518725116427436.2128915.3546275.96-9401.62-23369.313.081.750.0554471.77
atrtrail34.96333123125418432.821280.6647014.98-6421.24-22258.733.311.620.0412664.98
atrnil26.06365437126547242.8619079.1331343.32-9233.83-23369.312.071.550.0462900.29
atrtrail-15.71285289123398431.7120948.9788870.95-6330.01-22258.733.311.540.0312319.43
atrtrail24.46226116128458335.1616940.7531343.32-6460.46-22258.732.621.420.0331766.53

In the table above, row 1 shows the best exit criterion. Profit factor is 2.34. Strategy is showing mildly bullish results but we advice not to take a call solely on the basis of this study. Percentage of profitable trades is 53.57%, which is not acceptable. Avoid this strategy. Average return per trade is 1.47%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.052, which is low, don't trade solely on the basis of this study.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.

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