Study: Buy ASHOKLEY when there is Golden Cross (50 DMA > 200 DMA)

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In this study, we evaluate the performance of strategy "Buy ASHOKLEY when there is Golden Cross (50 DMA > 200 DMA)" 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
Although, strategy looks good but profit factor on day 1 is less than minimum accepted value so avoid this, see below for further analysis.

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

In the table above, row 1 shows the best exit criterion. Profit factor is 1.88. 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 42.11%, which is not acceptable. Avoid this strategy. Average return per trade is 2.32%, which is very good. Sharpe Ratio is 0.046, which is low, don't trade solely on the basis of this study.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
ASHOKLEY Performance, Profit Factor:1.88

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2020308 Jan 2020 (4.95%), 23 Sep 2020 (-5.4%), 24 Sep 2020 (7.88%)
2017109 Mar 2017 (-0.93%)
2014212 Mar 2014 (-3.51%), 13 Mar 2014 (29.67%)
2012222 Feb 2012 (-4.65%), 19 Dec 2012 (-3.4%)
2011116 Nov 2011 (-3.97%)
2009126 May 2009 (20.52%)
2007105 Nov 2007 (-5.41%)
2006120 Sep 2006 (10.14%)
2005217 Jan 2005 (-5.39%), 18 Jan 2005 (15.33%)
2003117 Feb 2003 (-4.15%)
2001127 Feb 2001 (-7.2%)
1999115 Jan 1999 (-6.37%)
1998115 Jun 1998 (2.85%)
1996129 Apr 1996 (3.18%)

View performance of other stocks for this trading system.

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