Study: Buy ASHOKLEY when there is Bullish Centerline Crossover in MACD

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In this study, we evaluate the performance of strategy "Buy ASHOKLEY when there is Bullish Centerline 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 ASHOKLEY 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
112264.74136746.154074.639059.91-1740.43-5395.682.342.010.052943.44
29809.23137653.854497.4310344.83-3612.13-9352.521.251.450.029754.56
39477.06136746.159593.4619094.01-6869.1-14748.21.41.20.016729
44215.83135838.4612707.9822893.33-7415.51-22482.011.711.070.0054324.29
5-8965.22135838.4612840.3524743.83-9145.87-25539.571.40.88-0.01-689.63
6-4830.41137653.858392.0319582.54-10595.77-24280.580.790.92-0.0063-371.57
715837.48136746.1512545.2428614.8-8490.57-20323.741.481.270.0181218.27
826844.93136746.1513904.4329373.81-8083.09-250001.721.470.032064.99
97063.44135838.4614179.5426261.86-7979.28-26618.711.781.110.0083543.34
109467.3135838.4616497.234459.2-9127.34-24820.141.811.130.01728.25

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 2.01. 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 46.15%, which is not acceptable. Avoid this strategy. Average return per trade is 0.47%, 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.
ASHOKLEY Performance, X=1, Profit Factor:2.01

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019109 Apr 2019 (-0.16%)
2017207 Mar 2017 (-0.11%), 30 Aug 2017 (-0.19%)
2015109 Sep 2015 (-0.29%)
2014117 Jul 2014 (-1.3%)
2011127 Apr 2011 (-2.7%)
2006110 Nov 2006 (1.85%)
2005231 Aug 2005 (0.35%), 03 Oct 2005 (1.37%)
2003129 Jul 2003 (2.69%)
2002105 Jun 2002 (4.53%)
1997128 Jan 1997 (1.43%)
1996109 Jul 1996 (-1.34%)

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-1112264.74136746.154074.639059.91-1740.43-5395.682.342.010.052943.44
atrnil26.5339380.7515694019030.5624301.02-8311.4-11811.922.291.530.0392625.38
atrtrail25.2728669.22157846.6712004.7924301.02-6920.54-11811.921.731.520.0351911.28
atrtrail-1727397.65157846.6711823.1338830.17-6920.54-11811.921.711.490.031826.51
atrtrail36.2723208.17157846.6711224.6430558.37-6920.54-11811.921.621.420.0281547.21
atrnil39.8729710.341541126.6730300.8736451.52-8317.56-11811.923.641.320.0231980.69

In the table above, row 1 shows the best exit criterion. Profit factor is 2.01. 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 46.15%, which is not acceptable. Avoid this strategy. Average return per trade is 0.47%, 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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