Study: Buy AXISBANK when RSI is oversold

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In this study, we evaluate the performance of strategy "Buy AXISBANK when RSI is oversold" 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
161638.7337231462.166198.2131045.91-5780.01-16466.781.071.760.0441665.91
212766237221559.468572.0450828.21-4061.51-10484.562.113.10.0743450.33
378188.9737221559.469142.6750733.55-8196.65-27961.171.121.640.0362113.22
413754637211656.7611389.6835873.17-6352.3-17424.951.792.350.0683717.47
513011637201754.0513354.0754509.02-8056.79-25812.441.661.950.0493516.65
616804937221559.4614018.349295.77-9356.9-19643.91.52.20.0634541.87
720632137241364.8614259.2738732.39-10453.91-29901.271.362.520.085576.26
824182437231462.1617100.5840845.07-10820.65-43441.471.582.60.0816535.79
930452837251267.5717760.638476.95-11623.91-55853.311.533.180.0968230.49
1030416837261170.2717503.536462-13720.26-44287.731.283.020.0968220.76

From the table above, we see that best results are achieved by holding positions for 9 trading days. Profit factor is 3.18. Strategy is very good and impressively bullish. Percentage of profitable trades is 67.57%, which is good. Average return per trade is 4.12%, which is very good. Sharpe Ratio is 0.096, which is low, don't trade solely on the basis of this study. Maximum losing trade is greater than maximum winning trade which is not good and there can be a huge drawdown before profitability.
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=9, Profit Factor:3.18

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019224 Jul 2019 (-4.67%), 07 Aug 2019 (0.18%)
2017119 Oct 2017 (15.61%)
2016207 Jan 2016 (-5.29%), 26 Oct 2016 (0.68%)
2015321 Aug 2015 (-7.31%), 07 Sep 2015 (17.37%), 11 Dec 2015 (2.29%)
2013404 Apr 2013 (10.72%), 12 Jun 2013 (-3.37%), 30 Jul 2013 (4.55%), 27 Aug 2013 (13.75%)
2012402 Jan 2012 (18.33%), 04 May 2012 (-5.79%), 18 May 2012 (2.27%), 05 Sep 2012 (13.68%)
2011405 May 2011 (0.67%), 18 Aug 2011 (-2.6%), 21 Nov 2011 (6.22%), 19 Dec 2011 (-4.82%)
2009102 Mar 2009 (0.74%)
2008210 Mar 2008 (-1.95%), 20 Nov 2008 (12.27%)
2006225 May 2006 (-1.77%), 08 Jun 2006 (2.68%)
2005124 Oct 2005 (4.08%)
2004217 May 2004 (12.21%), 23 Aug 2004 (13.63%)
2002221 May 2002 (11.01%), 29 Jul 2002 (2.18%)
2001527 Feb 2001 (-27.93%), 14 Mar 2001 (-3.26%), 30 Mar 2001 (19.24%), 12 Sep 2001 (-0.97%), 24 Dec 2001 (9.66%)
2000112 Oct 2000 (14.24%)
1999123 Feb 1999 (13.73%)

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-1930452837251267.5717760.638476.95-11623.91-55853.311.533.180.0968230.49
atrtrail23.983903736432325018762.0761519.09-6562.92-17036.372.862.860.0816099.57
atrtrail-16.4235077364313348.4418203.5674945.85-6470.83-17036.372.812.640.0675480.82
atrtrail35.0233128664313348.4417574.9650471.42-6470.83-17036.372.722.550.075176.35
atrnil25.8435069157282949.1222669.2561519.09-9794.76-19472.542.312.230.0746152.47
atrnil310.0734021657213636.843364360966.21-10174.64-30759.553.311.930.0575968.7

In the table above, row 1 shows the best exit criterion. Profit factor is 3.18. Strategy is very good and impressively bullish. Percentage of profitable trades is 67.57%, which is good. Average return per trade is 4.12%, which is very good. Sharpe Ratio is 0.096, which is low, don't trade solely on the basis of this study. Maximum losing trade is greater than maximum winning trade which is not good and there can be a huge drawdown before profitability.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.

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