Study: Buy ENGINERSIN when RSI is above 50 and ADX is Trending and there is Golden Cross (50 DMA > 200 DMA)

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In this study, we evaluate the performance of strategy "Buy ENGINERSIN when RSI is above 50 and ADX is Trending and there is Golden Cross (50 DMA > 200 DMA)" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy ENGINERSIN 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
112285.193633.3312592.2135951.13-4248.59-14880.582.961.480.0231365.01
212099.7593633.3315736.4337486.91-5851.59-18148.962.691.340.0211344.42
34900.6593633.3314769.2937696.34-6567.87-13592.082.251.120.0086544.52
4-6813.7392722.2219942.1629598.6-6671.15-16389.062.990.85-0.013-757.08
540044.4994544.4422395.0661431.06-9907.15-21197.362.261.810.0444449.39
610072995455.5630437.93108691-12865.18-22925.092.372.960.06811192.1
793007.5194544.4437414.43111065-11330.05-20368.873.32.640.06110334.17
833853.894544.4425793.0468760.91-13863.67-17472.91.861.490.0323761.53
945111.0693633.3338955.2171832.46-11959.09-20238.843.261.630.045012.34
1059732.4293633.3339682.4966317.63-9885.84-16211.64.012.010.0556636.94
Although, strategy looks good but profit factor on day 4 is less than minimum accepted value so avoid this, see below for further analysis.
ENGINERSIN Performance, X=6, Profit Factor:2.96

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2017101 Nov 2017 (3.62%)
2016114 Jul 2016 (7.14%)
2014118 Mar 2014 (10.46%)
2013108 Nov 2013 (-3.3%)
2012113 Mar 2012 (-3.02%)
2009115 Apr 2009 (-7.95%)
2007127 Sep 2007 (-11.46%)
2003127 Jun 2003 (0.53%)
2002113 Feb 2002 (54.35%)

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
atrnil33.2725577.19114736.3625256.1529288.09-10778.2-18106.832.341.340.0292325.2
atrtrail33.1816753.93114736.3622570.9129288.09-10504.24-18106.832.151.230.021523.08
atrtrail23.09-6179.96114736.3616837.4319525.39-10504.24-18106.831.60.92-0.0092-561.81
atrnil23.18-8097.68114736.3616837.4319525.39-10778.2-18106.831.560.89-0.012-736.15
atrtrail-14.1-32903.8310373013541.9625764.82-10504.24-18106.831.290.55-0.058-3290.38

In the table above, row 1 shows the best exit criterion. Profit factor is 1.34. 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 36.36%, which is not acceptable. Avoid this strategy. Average return per trade is 1.16%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.029, 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.
ENGINERSIN Performance, Profit Factor:1.34

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2017101 Nov 2017 (10.49%)
2016114 Jul 2016 (-2.98%)
2014118 Mar 2014 (11.58%)
2013108 Nov 2013 (-3.71%)
2012113 Mar 2012 (-4.25%)
2009215 Apr 2009 (-7.95%), 16 Apr 2009 (-9.05%)
2007127 Sep 2007 (-4.91%)
2003127 Jun 2003 (-4.87%)
2002213 Feb 2002 (13.8%), 14 Feb 2002 (14.64%)



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