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

home > technical-strategy > godfryphlp > 54

In this study, we evaluate the performance of strategy "Buy GODFRYPHLP when RSI is above 50 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 GODFRYPHLP 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
119014.481910952.634370.1618259.86-2743.01-10379.021.591.770.0381000.76
233514.11911857.895932.1414208.31-3967.42-11159.521.52.060.0581763.9
3-21973.681991047.375313.6610662.06-6979.66-13009.190.760.69-0.032-1156.51
4-25451.461981142.115506.5711505.62-6318.55-14941.730.870.63-0.037-1339.55
5-48584.861961331.585598.3112985.31-6321.13-13921.960.890.41-0.073-2557.1
6-63680.261951426.326697.5116359.55-6940.56-15136.520.960.34-0.09-3351.59
7-69800.161951426.326635.179053.65-7355.43-16447.610.90.32-0.1-3673.69
8-73980.071951426.328263.3713448.01-8235.5-19312.3310.36-0.092-3893.69
9-51789.81971236.848228.8313994.81-9115.97-20800.420.90.53-0.058-2725.78
10-68262.471971236.846615.4712023.28-9547.56-21154.410.690.4-0.081-3592.76

From the table above, we see that best results are achieved by holding positions for 2 trading days. Profit factor is 2.06. 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 57.89%, which is not acceptable. Avoid this strategy. Average return per trade is 0.88%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.058, 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.
GODFRYPHLP Performance, X=2, Profit Factor:2.06

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2018118 Dec 2018 (-1.3%)
2017115 May 2017 (1.73%)
2016106 Sep 2016 (7.1%)
2015119 Aug 2015 (-0.65%)
2014125 Feb 2014 (-2.68%)
2013130 Jan 2013 (-1.35%)
2012120 Apr 2012 (-5.58%)
2011125 Apr 2011 (2.02%)
2010221 Jul 2010 (0.71%), 01 Dec 2010 (2.49%)
2009118 Jun 2009 (0.12%)
2008111 Sep 2008 (-0.4%)
2007315 Jan 2007 (-0.64%), 26 Apr 2007 (5.15%), 03 Oct 2007 (-3.28%)
2004113 Sep 2004 (1.37%)
2003111 Jul 2003 (1.39%)
2001111 Dec 2001 (4.76%)
2000126 Dec 2000 (5.77%)

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
nilnil-1233514.11911857.895932.1414208.31-3967.42-11159.521.52.060.0581763.9
atrtrail-15.452189.71209114512525.9877905.86-5504.01-8632.252.281.860.032609.49
atrtrail34.9540772.12191242.8612249.2248146.87-5789.24-8926.772.121.590.031941.53
atrtrail24.3828951.392191242.8610935.8132097.91-5789.24-8926.771.891.420.0271378.64
atrnil25.81-6191.692161528.5717873.8532097.91-7562.32-10500.822.360.95-0.005-294.84
atrnil37.71-19486.42141719.0527669.3648146.87-7656.7-10500.823.610.85-0.013-927.92

In the table above, row 1 shows the best exit criterion. Profit factor is 2.06. 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 57.89%, which is not acceptable. Avoid this strategy. Average return per trade is 0.88%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.058, 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