Study: Sell ASIANPAINT when RSI is overbought

home > technical-strategy > asianpaint > 61

In this study, we evaluate the performance of strategy "Sell ASIANPAINT when RSI is overbought" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: sell ASIANPAINT 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. buy 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
155411.771206060503966.9282715.52-3043.39-15837.71.31.30.011461.76
236614.87120615950.835011.0186465.52-4560.28-24210.361.11.140.0064305.12
343303.85120615950.836150.4482715.52-5624.96-34513.631.091.130.0069360.87
4116245120675355.836311.6783577.59-5785.61-30747.941.091.380.018968.71
5107573120705058.335930.0382844.83-6150.6-26434.440.961.350.017896.44
6133517120675355.837021.7483318.97-6357.36-31534.051.11.40.021112.64
7187979120714959.177728.3684202.59-7361.93-30014.431.051.520.0251566.49
8152859120655554.178263.9182995.69-6987.18-28535.671.181.40.021273.83
9101397120635752.58823.5780495.69-7973.47-34793.491.111.220.013844.98
1010429.78120635752.58755.7882887.93-9494.46-31057.340.921.020.001386.91
Although, strategy looks good but profit factor on day 3 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
atrnil24.6794057.022217914235.7511176.1717421.45-5555.35-9920.032.011.120.01425.6
atrtrail23.5823340.052368615036.447874.8217267.8-4359.3-9920.031.811.040.002998.9
atrtrail-14.61-75748.742328115134.917150.3988866.88-4337.29-9920.031.650.88-0.0073-326.5
atrtrail34.13-83525.742338215135.196954.7925901.71-4329.92-9920.031.610.87-0.011-358.48
atrnil37.58-2290732144317120.0916629.9525901.71-5521.41-9920.033.010.76-0.024-1070.43

In the table above, row 1 shows the best exit criterion. Profit factor is 1.12. Profit factor is showing that this strategy doesn't give any edge over rendomness and it is only as good as tossing a coin and doing the trade. Percentage of profitable trades is 35.75%, which is not acceptable. Avoid this strategy. Average return per trade is 0.21%, which is low, don't trade solely on the basis of this study. Sharpe Ratio is 0.01, 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.
ASIANPAINT Performance, Profit Factor:1.12

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019602 Apr 2019 (3.58%), 24 Jul 2019 (-2.39%), 26 Jul 2019 (-2.41%), 06 Aug 2019 (-2.32%), 19 Aug 2019 (-2.06%), 29 Aug 2019 (3.51%)
2018802 May 2018 (-2.05%), 11 May 2018 (-2.36%), 15 May 2018 (4.73%), 09 Jul 2018 (-2.04%), 17 Jul 2018 (-2.05%), 19 Jul 2018 (-1.93%), 23 Jul 2018 (-2.07%), 24 Jul 2018 (4.25%)
2017607 Feb 2017 (3.72%), 14 Mar 2017 (-1.99%), 05 May 2017 (-1.89%), 08 May 2017 (3.81%), 01 Sep 2017 (-1.93%), 11 Sep 2017 (3.88%)
2016916 May 2016 (-2.01%), 17 May 2016 (-2.01%), 26 May 2016 (-2.01%), 01 Jun 2016 (4.13%), 25 Jul 2016 (-1.75%), 28 Jul 2016 (-2.15%), 04 Aug 2016 (-2.26%), 08 Aug 2016 (4.25%), 06 Sep 2016 (4.31%)
2015622 Jan 2015 (-2.57%), 27 Jan 2015 (-2.55%), 28 Jan 2015 (5.12%), 07 Jul 2015 (5.05%), 16 Jul 2015 (-2.51%), 05 Aug 2015 (5.52%)
20141219 Mar 2014 (-1.96%), 24 Mar 2014 (-1.96%), 27 Mar 2014 (-2.0%), 31 Mar 2014 (4.0%), 24 Jun 2014 (-2.52%), 30 Jun 2014 (4.82%), 24 Jul 2014 (-2.6%), 25 Jul 2014 (5.2%), 08 Sep 2014 (4.53%), 18 Nov 2014 (-2.38%), 28 Nov 2014 (-2.44%), 01 Dec 2014 (5.27%)
2013704 Feb 2013 (3.55%), 14 Mar 2013 (-2.14%), 15 Mar 2013 (4.35%), 18 Jul 2013 (4.63%), 22 Oct 2013 (-3.45%), 01 Nov 2013 (-3.09%), 08 Nov 2013 (5.63%)
20121630 Jan 2012 (-2.44%), 09 Feb 2012 (-2.54%), 28 Feb 2012 (-2.32%), 05 Mar 2012 (4.47%), 23 Apr 2012 (-2.34%), 28 Apr 2012 (-2.36%), 04 May 2012 (-2.34%), 07 May 2012 (-2.49%), 09 May 2012 (-2.47%), 29 May 2012 (-2.24%), 31 May 2012 (5.33%), 24 Sep 2012 (3.57%), 06 Nov 2012 (-1.9%), 08 Nov 2012 (3.81%), 29 Nov 2012 (-2.23%), 20 Dec 2012 (3.64%)
2011829 Apr 2011 (4.34%), 20 May 2011 (-2.55%), 24 May 2011 (-2.5%), 26 May 2011 (-2.49%), 30 May 2011 (-2.48%), 31 May 2011 (-3.03%), 07 Jun 2011 (5.71%), 01 Jul 2011 (5.56%)
20101412 Jan 2010 (5.51%), 13 Jan 2010 (-3.18%), 14 Jan 2010 (6.35%), 09 Jun 2010 (-2.84%), 17 Jun 2010 (-2.56%), 21 Jun 2010 (5.06%), 22 Jul 2010 (-2.44%), 29 Jul 2010 (-2.84%), 11 Aug 2010 (-2.54%), 19 Aug 2010 (-2.77%), 20 Aug 2010 (-2.82%), 06 Sep 2010 (5.16%), 21 Dec 2010 (-2.69%), 23 Dec 2010 (5.58%)
20091915 Apr 2009 (-3.75%), 16 Apr 2009 (-3.81%), 20 Apr 2009 (7.28%), 13 May 2009 (-3.33%), 18 May 2009 (-3.25%), 20 May 2009 (-3.2%), 21 May 2009 (-3.76%), 01 Jun 2009 (-4.04%), 11 Jun 2009 (7.28%), 15 Jun 2009 (7.99%), 22 Jul 2009 (-3.62%), 27 Jul 2009 (-3.64%), 29 Jul 2009 (7.37%), 07 Oct 2009 (-2.96%), 12 Oct 2009 (-2.96%), 14 Oct 2009 (-3.37%), 23 Oct 2009 (-3.43%), 16 Dec 2009 (-2.3%), 18 Dec 2009 (4.61%)
2008601 Jan 2008 (-3.65%), 07 Jan 2008 (-4.02%), 08 Jan 2008 (8.63%), 30 Apr 2008 (-2.9%), 05 Aug 2008 (-3.2%), 13 Aug 2008 (5.4%)
2007904 Jan 2007 (5.16%), 16 Jan 2007 (-3.83%), 01 Jun 2007 (-3.01%), 04 Jun 2007 (-3.13%), 13 Aug 2007 (7.05%), 25 Oct 2007 (8.44%), 26 Dec 2007 (5.8%), 28 Dec 2007 (-3.36%), 31 Dec 2007 (-3.67%)
20061516 Jan 2006 (-2.54%), 23 Jan 2006 (-2.66%), 27 Jan 2006 (-2.99%), 01 Feb 2006 (-2.88%), 02 Feb 2006 (-2.94%), 03 Feb 2006 (-2.93%), 06 Feb 2006 (-3.11%), 07 Feb 2006 (8.24%), 08 Aug 2006 (-3.0%), 11 Aug 2006 (6.03%), 14 Sep 2006 (-2.44%), 29 Sep 2006 (-2.13%), 05 Oct 2006 (-2.63%), 01 Nov 2006 (-4.0%), 07 Nov 2006 (-3.67%)
20051327 Jan 2005 (-2.56%), 31 Jan 2005 (5.26%), 11 Feb 2005 (-2.96%), 17 Mar 2005 (5.47%), 18 Mar 2005 (6.45%), 05 Jul 2005 (-2.11%), 08 Jul 2005 (-2.28%), 19 Jul 2005 (-2.54%), 20 Jul 2005 (5.19%), 04 Aug 2005 (-2.73%), 12 Sep 2005 (-2.44%), 14 Sep 2005 (-2.38%), 19 Sep 2005 (4.66%)
2004405 Jan 2004 (4.84%), 22 Apr 2004 (4.44%), 05 Aug 2004 (3.7%), 07 Dec 2004 (5.23%)
20031320 Mar 2003 (5.05%), 02 May 2003 (5.01%), 16 May 2003 (-3.04%), 19 May 2003 (-3.14%), 26 May 2003 (-3.02%), 03 Jul 2003 (-2.26%), 12 Aug 2003 (-2.38%), 14 Aug 2003 (-2.35%), 18 Aug 2003 (-2.47%), 19 Aug 2003 (5.92%), 08 Dec 2003 (-2.44%), 09 Dec 2003 (-2.53%), 11 Dec 2003 (-2.34%)
2002612 Feb 2002 (6.45%), 28 Mar 2002 (6.85%), 02 Jul 2002 (-3.16%), 04 Jul 2002 (-3.13%), 05 Jul 2002 (6.76%), 11 Jul 2002 (7.46%)
20001024 Jan 2000 (-4.06%), 25 Jan 2000 (-4.02%), 27 Jan 2000 (-4.96%), 13 Jul 2000 (-2.62%), 14 Jul 2000 (5.4%), 01 Aug 2000 (7.58%), 11 Dec 2000 (-3.93%), 12 Dec 2000 (-3.84%), 13 Dec 2000 (7.55%), 18 Dec 2000 (8.71%)
19991111 Jan 1999 (4.7%), 07 Jun 1999 (-3.68%), 08 Jun 1999 (7.75%), 21 Jun 1999 (-4.01%), 22 Jun 1999 (-3.98%), 05 Jul 1999 (-3.78%), 06 Jul 1999 (7.83%), 24 Aug 1999 (-3.52%), 25 Aug 1999 (-3.63%), 26 Aug 1999 (-3.65%), 27 Aug 1999 (7.6%)
1998325 Mar 1998 (-2.25%), 09 Apr 1998 (7.52%), 19 Aug 1998 (8.08%)
1997901 Mar 1997 (-2.32%), 03 Mar 1997 (-2.49%), 05 Mar 1997 (5.77%), 23 Jun 1997 (-1.98%), 24 Jun 1997 (-2.23%), 25 Jun 1997 (-2.44%), 26 Jun 1997 (-2.45%), 02 Jul 1997 (-2.85%), 09 Jul 1997 (5.43%)
1996812 Feb 1996 (-2.82%), 14 Feb 1996 (6.24%), 17 Apr 1996 (-2.82%), 18 Apr 1996 (-2.8%), 19 Apr 1996 (-2.83%), 24 Apr 1996 (-3.13%), 25 Apr 1996 (-3.17%), 30 Apr 1996 (6.49%)
1995304 Apr 1995 (-2.24%), 05 Apr 1995 (-2.34%), 06 Apr 1995 (4.88%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play