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

home > technical-strategy > bankindia > 47

In this study, we evaluate the performance of strategy "Buy BANKINDIA 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 BANKINDIA 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
125776.862112957.145487.412491.54-4452.44-10605.641.231.640.0411227.47
219111.6521111052.387060.5221083.58-5855.41-14540.471.211.330.023910.08
3-9811.4621101147.6210358.2324485.51-10308.52-16356.5910.91-0.0082-467.21
4-7369.72181338.112520.5428290.19-8271.85-19844.961.510.93-0.0061-350.94
59119.512171433.3319215.4157382.43-8956.31-24573.642.151.070.0053434.26
6-41155.522181338.113896.9753445.13-11717.79-28449.611.190.73-0.024-1959.79
7-13633.2321101147.6211478.849653.66-11674.66-39534.880.980.89-0.0078-649.2
8-8090.422181338.116456.1850455.71-10749.22-43333.331.530.94-0.0042-385.26
935593.742191242.8618235.8142581.12-10710.71-45503.881.71.280.0191694.94
1057556.212112957.1416266.344695.59-15293.27-48604.651.061.420.0282740.77

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 1.64. 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 57.14%, which is not acceptable. Avoid this strategy. Average return per trade is 0.61%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.041, which is low, don't trade solely on the basis of this study.

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
atrnil26.0614716431151648.3921368.1742910.2-10834.91-16099.91.971.850.0594747.23
nilnil-1125776.862112957.145487.412491.54-4452.44-10605.641.231.640.0411227.47
atrtrail-1674398.1633141942.4216384.1651774.86-8156.85-14967.772.011.480.032254.49
atrtrail35.1872031.4233151845.4514941.7846676.88-8449.73-14967.771.771.470.0312182.77
atrtrail24.4764012.7534161847.0613506.7531117.92-8449.73-14967.771.61.420.0311882.73
atrnil31091659.03309213034728.1164365.3-10518.76-16099.93.31.410.0293055.3

In the table above, row 1 shows the best exit criterion. Profit factor is 1.85. 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 48.39%, which is not acceptable. Avoid this strategy. Average return per trade is 2.37%, which is very good. Sharpe Ratio is 0.059, 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.
BANKINDIA Performance, Profit Factor:1.85

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019113 Aug 2019 (-5.1%)
2018422 Feb 2018 (-5.55%), 27 Feb 2018 (-5.94%), 13 Mar 2018 (14.11%), 09 Oct 2018 (12.08%)
2016121 Jan 2016 (8.15%)
2015126 Feb 2015 (8.94%)
2014121 Feb 2014 (8.88%)
2013628 Jun 2013 (-4.63%), 03 Jul 2013 (-5.0%), 01 Aug 2013 (-6.46%), 06 Aug 2013 (-7.1%), 19 Aug 2013 (-7.48%), 22 Aug 2013 (-8.05%)
2012306 Aug 2012 (-3.44%), 14 Aug 2012 (-3.34%), 05 Sep 2012 (6.33%)
2011423 Aug 2011 (-4.41%), 24 Aug 2011 (-4.73%), 26 Aug 2011 (10.42%), 29 Dec 2011 (10.53%)
2010115 Feb 2010 (7.63%)
2008119 Mar 2008 (21.46%)
2007115 Mar 2007 (15.56%)
2000402 Aug 2000 (7.76%), 08 Aug 2000 (-5.27%), 23 Aug 2000 (8.7%), 31 Aug 2000 (8.54%)
1997313 Nov 1997 (-5.02%), 08 Dec 1997 (-5.17%), 09 Dec 1997 (11.17%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play