Study: Buy DIVISLAB when RSI is above 50 and there is Bullish Crossover in MACD

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In this study, we evaluate the performance of strategy "Buy DIVISLAB when RSI is above 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 DIVISLAB 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
175076.77104465844.234956.5533035.53-2636.63-16883.391.881.490.031721.89
227056.76104475745.195798.5633336.21-4306.59-15982.461.351.110.0095260.16
386351.28104455943.277465.7242669.66-4230.61-18937.511.761.350.026830.3
4215495104594556.737373.7547140.45-4879.02-17640.171.511.980.0592072.07
5212230104554952.889007.7242612.97-5779.47-17153.671.561.750.0512040.68
6243171104574754.819324.8845222.98-6135.05-15838.311.521.840.0532338.18
7328973104574754.8111220.5759629.07-6608.5-21873.931.72.060.0613163.2
8361756104614358.6511382.7161518.72-7734.64-27519.031.472.090.0613478.42
9311921104584655.7711897.9563198.41-8220.87-26136.551.451.820.0512999.24
10393063104614358.6513028.5373205.11-9341.33-40262.751.391.980.0553779.46
Although, strategy looks good but profit factor on day 2 is less than minimum accepted value so avoid this, see below for further analysis.
DIVISLAB Performance, X=8, Profit Factor:2.09

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
20191010 Jan 2019 (-1.1%), 01 Feb 2019 (6.97%), 01 Mar 2019 (1.48%), 12 Apr 2019 (-0.56%), 22 May 2019 (-3.81%), 20 Jun 2019 (0.89%), 26 Jul 2019 (-1.97%), 09 Aug 2019 (-5.61%), 27 Aug 2019 (2.11%), 26 Sep 2019 (-0.47%)
2018823 Feb 2018 (-4.51%), 13 Mar 2018 (0.22%), 30 Apr 2018 (0.27%), 15 Jun 2018 (-7.38%), 03 Jul 2018 (2.07%), 20 Aug 2018 (4.75%), 07 Sep 2018 (5.67%), 29 Oct 2018 (7.55%)
2017502 Jun 2017 (4.07%), 03 Jul 2017 (8.87%), 24 Aug 2017 (3.77%), 02 Nov 2017 (-4.55%), 22 Dec 2017 (1.52%)
2016427 Jan 2016 (-6.6%), 30 May 2016 (0.3%), 04 Jul 2016 (0.7%), 16 Aug 2016 (5.54%)
20151013 Jan 2015 (-2.64%), 28 Jan 2015 (-6.94%), 06 Apr 2015 (0.87%), 15 May 2015 (1.69%), 18 Jun 2015 (2.22%), 05 Aug 2015 (10.63%), 24 Sep 2015 (-2.84%), 28 Oct 2015 (2.65%), 23 Nov 2015 (-1.78%), 18 Dec 2015 (0.59%)
2014706 Feb 2014 (-0.54%), 21 Feb 2014 (0.88%), 23 Apr 2014 (-1.02%), 22 Aug 2014 (3.59%), 30 Sep 2014 (-5.44%), 28 Oct 2014 (-4.56%), 15 Dec 2014 (-2.07%)
2013705 Mar 2013 (-3.4%), 02 Apr 2013 (-0.3%), 08 Aug 2013 (-2.41%), 30 Aug 2013 (0.04%), 03 Oct 2013 (1.81%), 08 Nov 2013 (11.0%), 20 Dec 2013 (4.09%)
2012625 Jan 2012 (-3.73%), 15 May 2012 (5.66%), 26 Jun 2012 (4.16%), 06 Aug 2012 (4.54%), 03 Oct 2012 (0.56%), 13 Nov 2012 (-2.41%)
2011731 Jan 2011 (-0.77%), 27 Apr 2011 (-2.39%), 23 May 2011 (5.27%), 01 Jul 2011 (3.18%), 26 Oct 2011 (3.55%), 29 Nov 2011 (-0.14%), 16 Dec 2011 (3.34%)
2010507 Jan 2010 (-5.49%), 18 May 2010 (4.51%), 26 Aug 2010 (1.05%), 25 Oct 2010 (-2.93%), 08 Nov 2010 (-9.04%)
2009307 May 2009 (7.09%), 20 Jul 2009 (-0.19%), 11 Nov 2009 (3.1%)
2008502 Jun 2008 (0.77%), 22 Jul 2008 (2.24%), 04 Sep 2008 (-11.03%), 03 Nov 2008 (-2.12%), 28 Nov 2008 (1.95%)
2007617 Jan 2007 (2.09%), 23 May 2007 (20.69%), 12 Jun 2007 (16.42%), 10 Jul 2007 (4.87%), 04 Dec 2007 (11.62%), 28 Dec 2007 (-1.97%)
2006916 Jan 2006 (6.89%), 29 Mar 2006 (0.86%), 19 Apr 2006 (-1.09%), 04 May 2006 (-11.51%), 21 Jul 2006 (19.2%), 04 Sep 2006 (-1.92%), 09 Oct 2006 (3.76%), 14 Nov 2006 (3.41%), 27 Dec 2006 (-0.94%)
2005404 Apr 2005 (-8.93%), 06 Jul 2005 (15.46%), 18 Aug 2005 (13.26%), 03 Oct 2005 (-10.28%)
2004416 Feb 2004 (13.63%), 26 May 2004 (-13.76%), 27 Aug 2004 (12.24%), 27 Sep 2004 (-3.14%)
2003419 Jun 2003 (30.76%), 30 Jul 2003 (-2.0%), 21 Aug 2003 (21.45%), 04 Nov 2003 (2.77%)

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-15.5124415212042783515626.6696914.65-5284.2-13630.452.961.590.0332034.6
atrtrail34.755652.88121437835.5410879.5429677.61-5284.2-13630.452.061.140.012459.94
atrtrail24.1311370.16123447935.779787.6829050.04-5307.44-13630.451.841.030.002792.44
atrnil25.37-15201.17122398331.9713657.6929050.04-6600.62-17483.892.070.97-0.0031-124.6
atrnil38.35-16548.59112278524.1120476.0930290.55-6698.86-17483.893.060.97-0.003-147.76

In the table above, row 1 shows the best exit criterion. Profit factor is 1.59. 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 35%, which is not acceptable. Avoid this strategy. Average return per trade is 1.02%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.033, 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.
DIVISLAB Performance, Profit Factor:1.59

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
20191010 Jan 2019 (-1.87%), 01 Feb 2019 (7.44%), 01 Mar 2019 (-0.43%), 12 Apr 2019 (-1.53%), 22 May 2019 (2.46%), 20 Jun 2019 (-2.76%), 26 Jul 2019 (-2.3%), 09 Aug 2019 (-2.59%), 26 Aug 2019 (-2.93%), 26 Sep 2019 (-2.96%)
2018823 Feb 2018 (-3.23%), 13 Mar 2018 (2.66%), 30 Apr 2018 (-1.26%), 15 Jun 2018 (-3.45%), 03 Jul 2018 (0.11%), 20 Aug 2018 (1.51%), 07 Sep 2018 (-3.07%), 29 Oct 2018 (0.5%)
2017702 Jun 2017 (3.38%), 03 Jul 2017 (-2.39%), 04 Jul 2017 (12.32%), 24 Aug 2017 (4.01%), 02 Nov 2017 (-3.75%), 03 Nov 2017 (-3.91%), 22 Dec 2017 (0.21%)
2016627 Jan 2016 (-2.82%), 28 Jan 2016 (-1.82%), 30 May 2016 (0.72%), 04 Jul 2016 (-2.25%), 12 Jul 2016 (-1.94%), 16 Aug 2016 (4.22%)
20151013 Jan 2015 (-2.44%), 28 Jan 2015 (-0.61%), 06 Apr 2015 (0.63%), 15 May 2015 (-1.76%), 18 Jun 2015 (-2.5%), 05 Aug 2015 (18.59%), 24 Sep 2015 (-1.87%), 28 Oct 2015 (0.99%), 23 Nov 2015 (-3.0%), 18 Dec 2015 (-0.18%)
2014806 Feb 2014 (-1.26%), 21 Feb 2014 (-1.24%), 23 Apr 2014 (-0.29%), 22 Aug 2014 (5.72%), 30 Sep 2014 (-2.79%), 28 Oct 2014 (0.62%), 15 Dec 2014 (-2.38%), 22 Dec 2014 (-2.55%)
2013705 Mar 2013 (-2.84%), 02 Apr 2013 (-2.98%), 08 Aug 2013 (0.9%), 30 Aug 2013 (-2.96%), 03 Oct 2013 (1.66%), 08 Nov 2013 (10.79%), 20 Dec 2013 (6.57%)
2012825 Jan 2012 (-0.79%), 15 May 2012 (-3.14%), 16 May 2012 (3.78%), 26 Jun 2012 (3.7%), 06 Aug 2012 (-2.39%), 16 Aug 2012 (-1.72%), 03 Oct 2012 (-3.13%), 13 Nov 2012 (-2.9%)
2011831 Jan 2011 (-2.78%), 27 Apr 2011 (-2.79%), 23 May 2011 (-2.74%), 01 Jul 2011 (1.11%), 26 Oct 2011 (2.64%), 29 Nov 2011 (0.79%), 16 Dec 2011 (-2.62%), 22 Dec 2011 (1.67%)
2010807 Jan 2010 (-2.95%), 08 Jan 2010 (-2.43%), 18 May 2010 (-3.1%), 24 May 2010 (-3.17%), 25 May 2010 (7.5%), 26 Aug 2010 (-2.22%), 25 Oct 2010 (-2.16%), 08 Nov 2010 (-1.78%)
2009407 May 2009 (-5.3%), 20 Jul 2009 (0.99%), 11 Nov 2009 (-3.73%), 24 Nov 2009 (-2.44%)
2008602 Jun 2008 (-1.7%), 22 Jul 2008 (-0.79%), 04 Sep 2008 (-3.83%), 03 Nov 2008 (-5.63%), 28 Nov 2008 (-6.82%), 01 Dec 2008 (8.73%)
2007617 Jan 2007 (5.43%), 23 May 2007 (19.39%), 12 Jun 2007 (16.61%), 10 Jul 2007 (-0.74%), 04 Dec 2007 (6.5%), 28 Dec 2007 (-3.66%)
20061016 Jan 2006 (-3.25%), 29 Mar 2006 (6.29%), 19 Apr 2006 (-5.26%), 04 May 2006 (-4.4%), 21 Jul 2006 (28.15%), 04 Sep 2006 (-2.12%), 09 Oct 2006 (19.45%), 14 Nov 2006 (-2.78%), 24 Nov 2006 (-1.0%), 27 Dec 2006 (-0.63%)
2005504 Apr 2005 (-4.52%), 06 Jul 2005 (-2.75%), 07 Jul 2005 (15.26%), 18 Aug 2005 (3.73%), 03 Oct 2005 (-0.59%)
2004516 Feb 2004 (14.87%), 26 May 2004 (-4.7%), 27 Aug 2004 (-4.25%), 27 Sep 2004 (-3.57%), 28 Sep 2004 (-2.18%)
2003419 Jun 2003 (27.1%), 30 Jul 2003 (-4.82%), 21 Aug 2003 (48.46%), 04 Nov 2003 (-2.9%)



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