Study: Buy BANKINDIA when RSI is oversold

home > technical-strategy > bankindia > 59

In this study, we evaluate the performance of strategy "Buy BANKINDIA 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 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
111432077393850.657119.8531332.66-4298.78-17218.541.661.70.0391484.68
291361.9177393850.659269.4856561.55-7109.16-24121.381.31.340.0221186.52
314056677443357.149303.4551475.08-8145.03-29037.831.141.520.0331825.53
417257077364146.7512883.1564496.44-7103.02-29306.71.811.590.0342241.17
520211577364146.7515920.0267881.44-9048.92-30151.721.761.540.0332624.87
612753877364146.7516103.6270602.53-11029.09-27764.711.461.280.021656.34
717653877374048.0516369.6652899.29-10728.47-30536.451.531.410.0282292.71
820392577324541.5620653.1163168.12-10154.99-29111.972.031.450.0292648.38
924036977374048.0520080.5374635.57-12565.26-40154.441.61.480.033121.68
1029563677393850.6519321.7967881.44-12050.37-43938.221.61.650.0383839.43

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 1.7. 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 50.65%, which is not acceptable. Avoid this strategy. Average return per trade is 0.74%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.039, 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
nilnil-1111432077393850.657119.8531332.66-4298.78-17218.541.661.70.0391484.68
atrtrail-15.52395513148559337.1619387.11124217-7212.66-17595.262.691.590.0312672.39
atrtrail34.68288638148569237.8417130.7166931.98-7290.02-17595.262.351.430.0271950.25
atrtrail24.09235341150589238.6715759.5751707.03-7377.33-17595.262.141.350.0241568.94
atrnil38.11301853132389428.7932374.2767847.21-9876.27-25853.513.281.330.0242286.77
atrnil26.03238219135498636.321874.0251707.03-9693.11-189752.261.290.0231764.59

In the table above, row 1 shows the best exit criterion. Profit factor is 1.7. 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 50.65%, which is not acceptable. Avoid this strategy. Average return per trade is 0.74%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.039, 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, X=1, Profit Factor:1.7

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019418 Feb 2019 (3.12%), 07 May 2019 (-1.0%), 25 Jul 2019 (0.86%), 13 Aug 2019 (1.57%)
2018816 Jan 2018 (4.97%), 05 Feb 2018 (-3.12%), 20 Feb 2018 (-0.58%), 07 Mar 2018 (-1.39%), 23 Mar 2018 (4.72%), 28 Jun 2018 (2.76%), 16 Jul 2018 (5.74%), 28 Sep 2018 (2.93%)
2016307 Jan 2016 (0.78%), 21 Jan 2016 (5.66%), 26 Dec 2016 (1.21%)
2015605 Feb 2015 (-0.9%), 26 Feb 2015 (6.25%), 24 Mar 2015 (-0.88%), 08 Jun 2015 (0.89%), 28 Jul 2015 (-3.04%), 08 Dec 2015 (-1.02%)
2014330 Jan 2014 (3.12%), 13 Feb 2014 (0.72%), 25 Sep 2014 (2.73%)
2013521 Mar 2013 (2.75%), 20 Jun 2013 (-6.36%), 04 Jul 2013 (0.31%), 24 Jul 2013 (-2.54%), 19 Aug 2013 (-1.56%)
2012325 Jul 2012 (-3.18%), 08 Aug 2012 (-1.75%), 24 Aug 2012 (-2.26%)
2011402 May 2011 (-6.17%), 03 Aug 2011 (-1.53%), 18 Aug 2011 (0.03%), 20 Dec 2011 (5.19%)
2010405 Feb 2010 (0.87%), 23 Feb 2010 (-0.05%), 23 Mar 2010 (1.24%), 25 Nov 2010 (2.45%)
2009205 Mar 2009 (-0.48%), 30 Oct 2009 (2.16%)
2008405 Mar 2008 (-5.08%), 05 Jun 2008 (2.53%), 23 Jun 2008 (-3.21%), 27 Oct 2008 (3.69%)
2007214 Feb 2007 (5.44%), 06 Mar 2007 (-4.31%)
2006208 Jun 2006 (13.66%), 17 Jul 2006 (-3.8%)
2005129 Apr 2005 (1.1%)
2004322 Mar 2004 (-2.69%), 17 May 2004 (15.67%), 23 Aug 2004 (-0.35%)
2002304 Jan 2002 (0.34%), 03 Sep 2002 (-1.5%), 19 Sep 2002 (-1.75%)
2001303 Apr 2001 (9.09%), 14 Sep 2001 (-8.61%), 18 Dec 2001 (-1.28%)
2000612 May 2000 (1.13%), 26 May 2000 (2.85%), 21 Jul 2000 (-0.85%), 08 Aug 2000 (0.0%), 23 Aug 2000 (0.0%), 09 Oct 2000 (-0.56%)
1998516 Jun 1998 (9.97%), 18 Aug 1998 (1.6%), 02 Sep 1998 (0.19%), 05 Oct 1998 (0.0%), 17 Dec 1998 (0.0%)
1997619 Aug 1997 (3.28%), 19 Sep 1997 (-2.14%), 13 Oct 1997 (-4.17%), 28 Oct 1997 (5.25%), 13 Nov 1997 (-1.29%), 05 Dec 1997 (-2.28%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play