Study: Sell BIOCON when RSI is overbought

home > technical-strategy > biocon > 61

In this study, we evaluate the performance of strategy "Sell BIOCON when RSI is overbought" 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
1947.360322853.332933.0114540.28-3318.18-17487.90.881.010.0008715.79
226184.9603327553959.8913659.67-3870.06-10168.091.021.250.022436.42
3-26761.9160342656.674174.1713744.08-6487.84-25921.790.640.84-0.016-446.03
4-57675.1860253541.676858.8219355.45-6547.02-21763.371.050.75-0.029-961.25
5-56810.45602436407944.9722250.89-6874.71-22794.121.160.77-0.026-946.84
6-55720.560253541.677915.721906.91-7246.09-23936.961.090.78-0.024-928.67
7-35347.39603030507338.3816625.98-8516.62-24394.490.860.86-0.015-589.12
8-43377.6860312951.677634.0717530.13-9656.34-28083.170.790.85-0.017-722.96
9-79967.03603030507519.9517447.01-10185.52-33905.230.740.74-0.03-1332.78
10-11090560263443.338273.6620386.25-9588.84-38316.990.860.66-0.041-1848.42
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
atrtrail23.88-1804.7123428134.159377.6226089.66-4884.75-14549.361.921-0.00046-14.67
atrnil36.67-63951.25110258522.7320475.6631402.19-6774.62-15695.213.020.89-0.012-581.38
atrtrail34.46-49650.99123418233.338456.9528993.05-4833.97-14549.361.750.87-0.013-403.67
atrnil24.89-70305.84112347830.3613501.6726089.66-6786.7-15695.211.990.87-0.016-627.73
atrtrail-14.87-92812.27123418233.337404.2333675.95-4833.97-14549.361.530.77-0.026-754.57

In the table above, row 1 shows the best exit criterion. Profit factor is 1. Profit factor is showing that this strategy doesn't give any edge over rendomness and it is only as good as tossing a coin and doing the trade. Percentage of profitable trades is 34.15%, which is not acceptable. Avoid this strategy. Average return per trade is -0.0073%, we advise you not to use this strategy.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
BIOCON Performance, Profit Factor:0.995

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019612 Jun 2019 (1.0%), 02 Jul 2019 (6.97%), 12 Jul 2019 (-2.79%), 17 Jul 2019 (5.98%), 14 Oct 2019 (-3.39%), 15 Oct 2019 (6.75%)
2018408 Jan 2018 (1.21%), 22 Jan 2018 (-3.22%), 23 Jan 2018 (6.7%), 26 Apr 2018 (-1.05%)
20171002 Feb 2017 (-2.48%), 06 Feb 2017 (1.16%), 20 Feb 2017 (-1.17%), 14 Jul 2017 (-3.95%), 18 Jul 2017 (-3.97%), 19 Jul 2017 (8.18%), 06 Nov 2017 (7.35%), 04 Dec 2017 (-3.33%), 19 Dec 2017 (-1.41%), 21 Dec 2017 (-2.26%)
20162801 Jan 2016 (-2.12%), 04 Jan 2016 (4.54%), 05 Apr 2016 (-2.73%), 07 Apr 2016 (-2.6%), 11 Apr 2016 (-2.66%), 12 Apr 2016 (-2.47%), 20 Apr 2016 (0.17%), 26 Apr 2016 (-2.62%), 27 Apr 2016 (-2.62%), 29 Apr 2016 (-2.5%), 02 May 2016 (-2.55%), 04 May 2016 (-0.63%), 11 May 2016 (-0.94%), 23 May 2016 (-2.13%), 26 May 2016 (-2.04%), 27 May 2016 (-2.39%), 31 May 2016 (-0.32%), 06 Jun 2016 (-0.57%), 21 Jun 2016 (4.3%), 27 Jun 2016 (1.66%), 22 Jul 2016 (-2.52%), 28 Jul 2016 (-2.0%), 08 Aug 2016 (-2.52%), 18 Aug 2016 (-1.85%), 22 Aug 2016 (-0.86%), 26 Aug 2016 (-2.8%), 30 Aug 2016 (-2.43%), 07 Sep 2016 (4.86%)
2015308 Apr 2015 (0.45%), 24 Dec 2015 (-1.82%), 30 Dec 2015 (-2.16%)
2014403 Jan 2014 (2.26%), 21 Apr 2014 (5.89%), 30 Jun 2014 (-1.89%), 03 Jul 2014 (6.66%)
20131316 Jul 2013 (-2.69%), 22 Jul 2013 (0.49%), 26 Jul 2013 (-3.2%), 29 Jul 2013 (1.5%), 13 Aug 2013 (-0.33%), 06 Nov 2013 (-1.72%), 12 Nov 2013 (0.59%), 27 Nov 2013 (-2.48%), 02 Dec 2013 (-2.29%), 06 Dec 2013 (4.53%), 18 Dec 2013 (-1.02%), 23 Dec 2013 (-3.31%), 24 Dec 2013 (-0.32%)
20121002 Jul 2012 (-2.53%), 04 Jul 2012 (-0.19%), 13 Jul 2012 (-2.32%), 17 Jul 2012 (-1.29%), 25 Jul 2012 (4.6%), 03 Sep 2012 (-2.02%), 07 Sep 2012 (-2.76%), 10 Sep 2012 (-0.39%), 08 Nov 2012 (-0.79%), 15 Nov 2012 (-3.0%)
2011207 Apr 2011 (-1.89%), 26 Apr 2011 (5.39%)
20101025 Mar 2010 (1.15%), 06 Apr 2010 (-1.35%), 22 Jun 2010 (-1.53%), 22 Jul 2010 (4.37%), 13 Aug 2010 (0.86%), 28 Sep 2010 (-0.12%), 04 Oct 2010 (-0.84%), 07 Oct 2010 (-2.98%), 08 Oct 2010 (-0.07%), 19 Oct 2010 (6.88%)
20091218 Mar 2009 (-4.04%), 25 Mar 2009 (-4.44%), 31 Mar 2009 (-7.13%), 02 Apr 2009 (-7.27%), 15 Apr 2009 (3.55%), 22 May 2009 (-6.63%), 25 May 2009 (1.02%), 27 May 2009 (1.2%), 05 Jun 2009 (-5.83%), 10 Jun 2009 (13.04%), 01 Oct 2009 (-3.4%), 16 Oct 2009 (-0.42%)
2008221 Apr 2008 (-4.07%), 22 Apr 2008 (8.83%)
20071018 Jan 2007 (-4.24%), 19 Jan 2007 (0.46%), 06 Feb 2007 (-4.41%), 07 Feb 2007 (8.84%), 20 Feb 2007 (9.36%), 04 Oct 2007 (7.53%), 06 Nov 2007 (-4.23%), 08 Nov 2007 (-5.03%), 12 Nov 2007 (-1.45%), 15 Nov 2007 (9.66%)
2006414 Aug 2006 (-3.78%), 16 Aug 2006 (-1.09%), 21 Aug 2006 (-4.1%), 22 Aug 2006 (8.24%)
2005501 Jun 2005 (-0.34%), 07 Jun 2005 (4.92%), 14 Jul 2005 (5.66%), 16 Sep 2005 (-2.72%), 21 Oct 2005 (8.15%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play