Study: Sell BIOCON when there is bearish divergence in RSI

home > technical-strategy > biocon > 41

In this study, we evaluate the performance of strategy "Sell BIOCON when there is bearish divergence in RSI" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: sell BIOCON 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. buy 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
1-12569.7126141253.852250.526269.66-3673.08-13198.640.610.71-0.03-483.45
2-29648.6526101638.463859.1116596.16-4264.99-15506.210.90.57-0.051-1140.33
3-47434.7526101638.465719.0220631.3-6539.06-25921.790.870.55-0.053-1824.41
4-83047.0926101638.465601.120284.2-8691.13-27775.690.640.4-0.083-3194.12
5-72246.342691734.627886.3315083.62-8424.9-28678.960.940.5-0.069-2778.71
6-99070.832681830.776279.9619305.08-8295.03-37034.250.760.34-0.088-3810.42
7-10882726101638.466286.2316642.31-10730.6-29205.870.590.37-0.097-4185.66
8-67925.826111542.317910.0216435.07-10329.07-31012.420.770.56-0.058-2612.53
9-54069.9526111542.318848.6716389.35-10093.69-40045.160.880.64-0.042-2079.61
10-57024.2926101638.469430.9320912.49-9458.35-26797.1410.62-0.048-2193.24

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 0.71. This strategy is not profitable and we advice you not to use it.

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-11-12569.7126141253.852250.526269.66-3673.08-13198.640.610.71-0.03-483.45
atrnil24.37-71285.53892923.6813911.5426089.66-6775.5-15808.922.050.64-0.05-1875.93
atrtrail23.73-60750.094193221.9511643.6826089.66-5173.23-15808.922.250.63-0.045-1481.71
atrtrail-14.39-95784.334183319.51881025336.55-5038.31-15808.921.750.42-0.085-2336.2
atrtrail34.07-1007054183319.518194.916183.04-5038.31-15808.921.630.39-0.097-2456.22
atrnil35.18-1627283843410.5318068.1828071.87-6911.78-15808.922.610.31-0.13-4282.31

In the table above, row 1 shows the best exit criterion. Profit factor is 0.71. 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.
BIOCON Performance, X=1, Profit Factor:0.715

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019224 Jun 2019 (1.28%), 12 Jul 2019 (0.35%)
2018122 Jan 2018 (-6.6%)
2017212 Dec 2017 (1.02%), 28 Dec 2017 (0.55%)
2016806 Jan 2016 (2.38%), 25 Apr 2016 (-1.27%), 09 May 2016 (-1.35%), 23 May 2016 (-0.51%), 06 Jun 2016 (0.31%), 21 Jun 2016 (1.19%), 05 Aug 2016 (-0.64%), 26 Aug 2016 (0.08%)
2014106 Jan 2014 (0.89%)
2013426 Jul 2013 (-3.02%), 13 Aug 2013 (1.06%), 27 Nov 2013 (-1.21%), 18 Dec 2013 (2.1%)
2012213 Jul 2012 (-0.14%), 10 Sep 2012 (-1.08%)
2011126 Apr 2011 (-0.53%)
2010114 Oct 2010 (0.68%)
2009227 Mar 2009 (-1.13%), 05 Jun 2009 (0.72%)
2007208 Feb 2007 (3.13%), 14 Nov 2007 (-4.55%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play