Study: Buy AXISBANK when there is bullish divergence in RSI and ADX is Trending

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In this study, we evaluate the performance of strategy "Buy AXISBANK when there is bullish divergence in RSI and ADX is Trending" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy AXISBANK 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
135356.0695455.5610760.0631441.05-4611.06-10593.962.332.920.0733928.45
245454.9597277.788739.4937654.4-7860.75-10632.911.113.890.0865050.55
358286.3495455.5614630.649107.92-3716.66-5296.983.944.920.0896476.26
477682.598188.8911285.5156943.23-12601.54-12601.540.97.160.18631.39
510075597277.7815021.3854510.29-2197.19-2582.86.8423.930.1511195.03
611047798188.8913945.4664404.24-1086.96-1086.9612.83102.640.1412275.19
711555197277.7817641.7471378.67-3970.79-5434.784.4415.550.1312838.95
811493797277.7817418.7562894.57-3497.17-5072.464.9817.430.1412770.77
911906397277.7818254.0869394.88-4357.59-6521.744.1914.660.1413229.26
1013623797277.7821014.7584516.53-5433.08-5434.783.8713.540.1215137.45

From the table above, we see that best results are achieved by holding positions for 6 trading days. Profit factor is 102.64. Number of signals (total trades) generated is low, don't trade solely on the basis of this study. Strategy is very good and impressively bullish. Percentage of profitable trades is 88.89%, which is excellent. Average return per trade is 6.14%, 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.
AXISBANK Performance, X=6, Profit Factor:103

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019107 Aug 2019 (3.8%)
2016104 Nov 2016 (0.13%)
2015101 Sep 2015 (1.28%)
2013220 Jun 2013 (6.89%), 04 Sep 2013 (32.2%)
2012117 May 2012 (5.16%)
2011129 Dec 2011 (4.65%)
2006112 Jun 2006 (1.67%)
2001114 Mar 2001 (-0.54%)

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-1611047798188.8913945.4664404.24-1086.96-1086.9612.83102.640.1412275.19
atrtrail-17.4410196594544.4433118.5468548.17-6101.85-17595.185.434.340.09111329.44
atrtrail35.2254281.7394544.4421197.7446869.32-6101.85-17595.183.472.780.0726031.3
atrtrail24.6737406.5794544.4416978.9531246.22-6101.85-17595.182.782.230.0654156.29
atrnil312.8936063.8593633.3333317.846869.32-10648.26-19472.543.131.560.044007.09
atrnil27.782273494544.4419990.2231246.22-11445.38-19472.541.751.40.0332526

In the table above, row 1 shows the best exit criterion. Profit factor is 102.64. Number of signals (total trades) generated is low, don't trade solely on the basis of this study. Strategy is very good and impressively bullish. Percentage of profitable trades is 88.89%, which is excellent. Average return per trade is 6.14%, 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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