Study: Buy BAJFINANCE when RSI is above 50 and there is Bullish Centerline Crossover in MACD

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In this study, we evaluate the performance of strategy "Buy BAJFINANCE when RSI is above 50 and 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 BAJFINANCE 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
1-8661.66157846.675428.0315737.7-5832.23-13504.070.930.81-0.016-577.44
2-10636.741569408023.1319131.53-6530.61-24447.031.230.82-0.014-709.12
37248.29157846.679833.3431803.28-7698.13-20657.281.281.120.0077483.22
414288.03158753.338341.3625573.77-7491.84-20023.281.111.270.017952.54
538555.611510566.679556.8326229.51-11402.54-27473.810.841.680.0392570.37
630515.74158753.3314221.4443934.43-11893.69-32130.381.21.370.0232034.38
743646.0215966013893.7239344.26-13566.24-38732.391.021.540.0322909.73
827476.3715966013639.4947868.85-15879.83-42018.780.861.290.0191831.76
917551.52158753.3315643.2449180.33-15370.63-30985.921.021.160.0121170.1
10-9856.54158753.3313364.4542950.82-16681.73-40375.590.80.92-0.0068-657.1
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
atrtrail24.82-25904.121771041.188775.0914558.23-8732.98-15502.1910.7-0.032-1523.77
atrnil25.29-60125.921751229.4113879.8617908.72-10793.77-15502.191.290.54-0.062-3536.82
atrtrail-15.82-44251.721761135.297604.5221606.63-8170.8-15502.190.930.51-0.057-2603.04
atrtrail35.12-49924.61761135.296659.0415933.75-8170.8-15502.190.810.44-0.071-2936.74
atrnil37.12-81140.411731417.6520771.1126863.08-10246.7-15502.192.030.43-0.079-4772.97

In the table above, row 1 shows the best exit criterion. Profit factor is 0.7. This strategy is not profitable and we advice you not to use it.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
BAJFINANCE Performance, Profit Factor:0.703

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019116 May 2019 (5.31%)
2016327 Jan 2016 (-3.11%), 29 Jan 2016 (-1.95%), 17 Oct 2016 (6.65%)
2015108 May 2015 (1.65%)
2006224 Mar 2006 (-4.6%), 27 Mar 2006 (-4.92%)
2004220 May 2004 (-2.93%), 02 Aug 2004 (6.51%)
2003103 Feb 2003 (7.28%)
2002105 Jun 2002 (0.29%)
2000221 Jan 2000 (-7.55%), 24 Feb 2000 (-7.75%)
1999304 Feb 1999 (-6.41%), 08 Mar 1999 (-3.71%), 01 Jul 1999 (-0.73%)
1998124 Dec 1998 (3.03%)



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