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

home > technical-strategy > divislab > 64

In this study, we evaluate the performance of strategy "Buy DIVISLAB 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 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
176822.5639271269.233728.2621986.07-1986.71-5855.741.884.220.0961969.81
210501039231658.976457.323225.11-2719.22-6411.372.373.410.12692.58
381015.8839221756.416248.2227828.52-3320.29-13363.371.882.440.0732077.33
480905.6839182146.158579.8624789.73-3501.51-7975.562.452.10.0672074.5
582126.3739192048.728480.7126996.47-3950.35-8523.182.152.040.0652105.8
641012.8139211853.856468.8527358.23-5268.51-15853.661.231.430.0311051.61
714831.7639192048.726844.3916496.34-5760.58-17863.221.191.130.011380.3
819830.7439192048.727520.115944.65-6152.56-195391.221.160.014508.48
9563.3439172243.598286.3817283.17-6377.51-22202.691.310.0003814.44
1043729.0639201951.289572.2919290.95-7774.56-23267.851.231.30.0261121.26

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 4.22. Strategy is very good and impressively bullish. Percentage of profitable trades is 69.23%, which is good. Average return per trade is 0.98%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.096, which is low, don't trade solely on the basis of this study.
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.
DIVISLAB Performance, X=1, Profit Factor:4.22

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019121 Jun 2019 (1.98%)
2018226 Feb 2018 (0.02%), 14 Jun 2018 (1.49%)
2017313 Jan 2017 (-1.1%), 10 Apr 2017 (0.14%), 01 Jun 2017 (2.73%)
2016302 Mar 2016 (0.74%), 26 Oct 2016 (0.06%), 07 Dec 2016 (0.02%)
2015118 Feb 2015 (0.11%)
2013321 Jan 2013 (-0.64%), 04 Mar 2013 (1.25%), 14 Jun 2013 (-0.29%)
2012103 Mar 2012 (-1.57%)
2011301 Feb 2011 (0.45%), 09 Mar 2011 (-0.36%), 05 Sep 2011 (-0.37%)
2010517 Feb 2010 (-0.09%), 25 Aug 2010 (0.97%), 05 Oct 2010 (0.35%), 22 Oct 2010 (1.06%), 05 Nov 2010 (4.56%)
2009210 Feb 2009 (1.16%), 21 Aug 2009 (1.13%)
2008415 Feb 2008 (-1.84%), 26 Mar 2008 (3.93%), 21 Jul 2008 (1.2%), 31 Oct 2008 (10.99%)
2007219 Mar 2007 (0.58%), 27 Aug 2007 (1.08%)
2006119 Jun 2006 (1.8%)
2005403 Mar 2005 (-0.66%), 01 Apr 2005 (8.85%), 09 May 2005 (-0.08%), 08 Nov 2005 (-2.93%)
2004402 Apr 2004 (0.92%), 15 Jun 2004 (1.77%), 08 Jul 2004 (-2.0%), 11 Nov 2004 (0.99%)

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-1176822.5639271269.233728.2621986.07-1986.71-5855.741.884.220.0961969.81
atrnil314.2929634542152735.7133960.86133131-7891.41-18891.584.32.390.0667055.83
atrnil29.3822837642182442.8622638.8488753.91-7463.45-16992.563.032.270.075437.53
atrtrail26.2671930.7842172540.4812686.7233614.12-5749.74-16992.562.211.50.0391712.64
atrtrail36.9837580.1742172540.4810666.0924046.95-5749.74-16992.561.861.260.023894.77
atrtrail-17.1215502.1342172540.489367.3824151.13-5749.74-16992.561.631.110.01369.1

In the table above, row 1 shows the best exit criterion. Profit factor is 4.22. Strategy is very good and impressively bullish. Percentage of profitable trades is 69.23%, which is good. Average return per trade is 0.98%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.096, which is low, don't trade solely on the basis of this study.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play