Study: Buy BANKINDIA when RSI is below 50 and there is Bullish Crossover in MACD

home > technical-strategy > bankindia > 64

In this study, we evaluate the performance of strategy "Buy BANKINDIA when RSI is below 50 and there is Bullish 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 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
1-8930.1691434847.253809.7411640.21-3598.94-16080.41.060.95-0.0043-98.13
251390.0591494253.856184.5332313.26-5991.72-20100.51.031.20.015564.73
376334.1591504154.958465.7134158.84-8462.23-28526.8611.220.016838.84
441498.3191474451.6510428.9729718.19-10196.89-44575.391.021.090.0072456.03
582434.5191474451.6512350.4736007.13-11319.04-49566.721.091.170.013905.87
6-313.1891424946.1513282.8643877.55-11391.7-36083.191.171-4.7e-05-3.44
714569591454649.4515335.7557142.86-11835.09-386001.31.270.0191601.04
819030891474451.6515553.5571182.41-12288.83-43951.471.271.350.0232091.3
930349291523957.1416813.4777718.36-14636.12-49497.41.151.530.0353335.08
1029805891504154.9517856.5377718.36-14506.56-62807.631.231.50.0323275.36
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
atrtrail-16.6631399799445544.4415843.8470236.96-6966.04-13139.322.271.820.0413171.68
atrnil38.8442865298356335.7129336.1458229.08-9493.85-18911.143.091.720.0474374
atrtrail35.627068999445544.4414859.5746278.86-6966.04-13139.322.131.710.0422734.23
atrtrail24.9516526810045554512125.8330852.58-6916.25-13139.321.751.430.0311652.68
atrnil27.1419783599405940.419129.2838819.39-9615.87-18911.141.991.350.0281998.33

In the table above, row 1 shows the best exit criterion. Profit factor is 1.82. 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 44.44%, which is not acceptable. Avoid this strategy. Average return per trade is 1.59%, 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.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
BANKINDIA Performance, Profit Factor:1.82

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019626 Feb 2019 (19.17%), 21 May 2019 (7.58%), 27 Jun 2019 (3.07%), 16 Aug 2019 (-4.78%), 26 Aug 2019 (-1.28%), 17 Oct 2019 (-0.96%)
2018805 Jan 2018 (-3.52%), 22 Jan 2018 (1.01%), 15 Mar 2018 (-6.26%), 07 May 2018 (-2.32%), 10 Jul 2018 (-3.62%), 11 Jul 2018 (-3.96%), 23 Jul 2018 (14.54%), 16 Oct 2018 (-5.34%)
2017304 Jan 2017 (4.93%), 21 Jun 2017 (-3.84%), 06 Sep 2017 (6.24%)
2016327 Jan 2016 (-3.49%), 22 Feb 2016 (-6.26%), 30 Oct 2016 (-2.8%)
2015825 Feb 2015 (0.27%), 01 Apr 2015 (7.04%), 21 May 2015 (-4.06%), 19 Jun 2015 (0.24%), 05 Aug 2015 (-1.86%), 14 Sep 2015 (0.27%), 30 Nov 2015 (-3.1%), 21 Dec 2015 (-2.65%)
2014221 Jul 2014 (-0.17%), 18 Aug 2014 (0.96%)
2013414 Mar 2013 (-2.17%), 03 Apr 2013 (-4.11%), 09 Jul 2013 (-3.97%), 12 Aug 2013 (-4.2%)
2012605 Jan 2012 (18.0%), 24 May 2012 (0.92%), 21 Aug 2012 (-1.66%), 04 Sep 2012 (-3.05%), 05 Sep 2012 (12.88%), 29 Nov 2012 (30.13%)
2011418 Jan 2011 (2.42%), 20 May 2011 (4.64%), 28 Jun 2011 (-2.25%), 28 Sep 2011 (-2.72%)
2010426 Feb 2010 (0.91%), 02 Jun 2010 (-0.28%), 03 Dec 2010 (-5.55%), 20 Dec 2010 (-2.11%)
2009406 Feb 2009 (-1.28%), 19 Mar 2009 (8.5%), 27 Aug 2009 (2.26%), 19 Nov 2009 (-0.88%)
2008618 Feb 2008 (-6.48%), 27 Mar 2008 (-4.76%), 17 Jun 2008 (-6.48%), 07 Jul 2008 (-1.1%), 06 Nov 2008 (0.61%), 04 Dec 2008 (13.07%)
2007120 Mar 2007 (8.85%)
2006221 Jun 2006 (-5.17%), 24 Jul 2006 (35.12%)
2005224 Feb 2005 (32.71%), 02 Nov 2005 (4.74%)
2004430 Mar 2004 (11.38%), 22 Jun 2004 (-6.57%), 29 Jun 2004 (-1.29%), 30 Aug 2004 (1.88%)
2003220 Mar 2003 (0.14%), 22 Aug 2003 (-3.56%)
2002409 Jan 2002 (13.39%), 07 Aug 2002 (-3.52%), 17 Sep 2002 (-2.55%), 26 Sep 2002 (2.06%)
2001211 Apr 2001 (3.24%), 09 Oct 2001 (-4.11%)
2000917 Feb 2000 (-4.07%), 28 Feb 2000 (-2.51%), 30 Mar 2000 (-6.08%), 31 May 2000 (-5.39%), 01 Jun 2000 (3.26%), 17 Jul 2000 (-3.53%), 23 Aug 2000 (2.96%), 05 Oct 2000 (-3.52%), 20 Oct 2000 (13.18%)
1999524 Feb 1999 (24.85%), 17 Apr 1999 (-6.19%), 05 May 1999 (4.21%), 19 Aug 1999 (2.86%), 16 Dec 1999 (0.1%)
1998630 Jan 1998 (11.98%), 01 Jul 1998 (-2.45%), 07 Sep 1998 (3.03%), 25 Sep 1998 (-3.32%), 26 Oct 1998 (-4.82%), 10 Nov 1998 (-0.69%)
1997422 Oct 1997 (-3.82%), 05 Nov 1997 (0.46%), 01 Dec 1997 (-5.09%), 17 Dec 1997 (8.51%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play