Study: Buy AJANTPHARM when there is bullish divergence in RSI

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In this study, we evaluate the performance of strategy "Buy AJANTPHARM when there is bullish divergence in RSI" 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
137651.84157846.677572.0614585.23-1919.07-6047.793.953.450.12510.12
257646.371511473.336935.1925842.7-4660.19-7619.581.494.090.113843.09
390358.121510566.6712153.5635674.16-6235.49-15813.621.953.90.116023.87
41151211511473.3313772.4134831.46-9093.86-15941.281.514.160.127674.74
5167156151238016233.2970505.62-9214.47-17813.771.767.050.1311143.74
616611515966022873.9158426.97-6625.09-19028.343.455.180.1311074.31
7159633158753.3328599.6361235.96-9880.58-25101.212.893.310.1110642.2
820557315966029537.3552528.09-10043.79-23076.922.944.410.1413704.89
920161315966028909.7149438.2-9762.45-18231.542.964.440.1313440.84
102052001510566.6724723.6160674.16-8407.25-15973.442.945.880.1513679.99

From the table above, we see that best results are achieved by holding positions for 5 trading days. Profit factor is 7.05. Strategy is very good and impressively bullish. Percentage of profitable trades is 80%, which is excellent. Average return per trade is 5.57%, which is very good.
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=5, Profit Factor:7.05

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2018222 May 2018 (2.11%), 05 Jun 2018 (11.23%)
2017116 Aug 2017 (-4.91%)
2015109 Dec 2015 (1.4%)
2010109 Dec 2010 (5.58%)
2008116 Oct 2008 (3.83%)
2006128 Mar 2006 (15.85%)
2005101 Nov 2005 (7.15%)
2004203 Feb 2004 (1.44%), 25 Mar 2004 (35.25%)
2003121 Mar 2003 (-8.91%)
2002204 Sep 2002 (0.0%), 11 Nov 2002 (0.46%)
2001223 Mar 2001 (2.06%), 22 May 2001 (11.05%)

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-15167156151238016233.2970505.62-9214.47-17813.771.767.050.1311143.74
atrtrail34.621211362191242.8626651.2952975.53-9893.84-14101.222.692.020.0655768.36
atrtrail-15.91074062191242.8625125.8353353.09-9893.84-14101.222.541.90.065114.59
atrtrail23.8688718.9422101245.4520932.0135317.02-10050.1-15976.362.081.740.0564032.68
atrnil36.485957.19207133534334.4352975.53-11875.68-21926.032.891.560.0444297.86
atrnil24.6276020.952191242.8624184.835317.02-11803.52-21926.032.051.540.0463620.05

In the table above, row 1 shows the best exit criterion. Profit factor is 7.05. Strategy is very good and impressively bullish. Percentage of profitable trades is 80%, which is excellent. Average return per trade is 5.57%, which is very good.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.

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