Study: Buy CADILAHC when there is bullish divergence in RSI

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In this study, we evaluate the performance of strategy "Buy CADILAHC when there is bullish divergence in RSI" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy CADILAHC 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
143362.471811761.114727.2213703.66-1233.84-3691.93.836.020.122409.03
282291.531812666.678021.127286.89-2326.94-3454.233.456.890.134571.75
388831.911813572.227548.6825563.29-1860.2-3571.434.0610.550.154935.11
471710.741811761.118343.731004.05-2867.13-4734.692.914.570.113983.93
588569.991811761.119550.6236777.07-2355.26-4921.284.066.370.124920.55
687608.121811761.119609.7635157.3-2585.61-6187.563.725.840.124867.12
768815.0318995010912.637275.46-3266.48-10167.953.343.340.0833823.06
844842.511810855.569077.9329488.11-5742.1-20880.621.581.980.0532491.25
933331.261810855.568222.4326040.91-6111.63-15342.711.351.680.0451851.74
1037635.541811761.117827.8323486.66-6924.37-17249.211.131.780.0482090.86

From the table above, we see that best results are achieved by holding positions for 3 trading days. Profit factor is 10.55. Strategy is very good and impressively bullish. Percentage of profitable trades is 72.22%, which is good. Average return per trade is 2.47%, which is very good.
In the chart below, we plot cumulative trade gain versus trades. This chart is important and informative as it shows the performance of strategy over time.
CADILAHC Performance, X=3, Profit Factor:10.6

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019222 May 2019 (1.86%), 18 Jun 2019 (0.47%)
2017323 Aug 2017 (7.77%), 30 Nov 2017 (-0.98%), 14 Dec 2017 (1.9%)
2016108 Jan 2016 (3.5%)
2013315 Feb 2013 (2.93%), 21 Aug 2013 (-0.4%), 05 Sep 2013 (1.44%)
2008131 Jan 2008 (8.6%)
2007128 Aug 2007 (0.59%)
2006115 Jun 2006 (12.78%)
2005220 Apr 2005 (-1.79%), 27 Oct 2005 (2.74%)
2002227 Sep 2002 (-1.42%), 14 Oct 2002 (1.53%)
2001218 Apr 2001 (2.95%), 06 Aug 2001 (-0.06%)

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-1388831.911813572.227548.6825563.29-1860.2-3571.434.0610.550.154935.11
atrtrail25.676803.12511144411949.2333374.15-3902.74-7792.363.062.410.0693072.12
atrtrail37.6872175.52511144411528.5424038.3-3902.74-7792.362.952.320.0672887.02
atrtrail-18.0852850.66251114449771.7322995.3-3902.74-7792.362.51.970.0572114.03
atrnil317.2762310.512271531.8226229.650061.22-8086.45-17438.933.241.510.0382832.3
atrnil29.7326426.242281436.3617410.4433374.15-8061.24-17438.932.161.230.0211201.19

In the table above, row 1 shows the best exit criterion. Profit factor is 10.55. Strategy is very good and impressively bullish. Percentage of profitable trades is 72.22%, which is good. Average return per trade is 2.47%, which is very good.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.

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