Study: Buy HCLTECH when above 200 SMA

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In this study, we evaluate the performance of strategy "Buy HCLTECH when above 200 SMA" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy HCLTECH 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
151879.8443241955.813751.310585-2007.96-6188.141.872.360.0711206.51
212264943271662.796207.5814346.13-2809.7-7824.652.213.730.112852.31
314240843261760.477884.7720182.71-3682.11-15213.192.143.280.13311.82
415186543301369.778033.4126037.96-6856.73-23585.11.172.70.0843531.74
515425243301369.778285.1431198.1-7254-26151.91.142.640.0863587.26
618822543291467.449020.4530427.05-5240.54-22364.821.723.570.14377.34
719295643281565.1210347.3355575.33-6451.28-26362.31.62.990.0794487.35
822639943291467.4411208.8877283.51-7047.07-28424.151.593.290.0775265.08
925144043301369.7711305.5672241.99-6748.23-26677.891.683.870.095847.44
1027944743301369.7712255.6756405.69-6786.43-219231.814.170.116498.76

From the table above, we see that best results are achieved by holding positions for 10 trading days. Profit factor is 4.17. Strategy is very good and impressively bullish. Percentage of profitable trades is 69.77%, which is good. Average return per trade is 3.25%, 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.
HCLTECH Performance, X=10, Profit Factor:4.17

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019308 Mar 2019 (0.85%), 14 May 2019 (0.32%), 01 Jul 2019 (-2.06%)
2018319 Feb 2018 (2.03%), 03 May 2018 (-1.72%), 11 Oct 2018 (-4.2%)
2017410 Apr 2017 (-1.57%), 16 Jun 2017 (-0.1%), 07 Jul 2017 (8.78%), 30 Aug 2017 (2.6%)
2014514 Mar 2014 (-0.78%), 10 Apr 2014 (4.2%), 07 May 2014 (1.15%), 17 Oct 2014 (4.34%), 08 Dec 2014 (1.86%)
2013204 Apr 2013 (-0.94%), 18 Apr 2013 (2.34%)
2012118 Jun 2012 (3.1%)
2011324 Feb 2011 (3.18%), 17 Jun 2011 (3.39%), 02 Aug 2011 (-10.96%)
2010627 Jan 2010 (5.01%), 06 Apr 2010 (7.78%), 20 May 2010 (4.76%), 31 Aug 2010 (10.52%), 28 Oct 2010 (-1.89%), 16 Nov 2010 (4.77%)
2009308 Jul 2009 (28.2%), 08 Oct 2009 (9.32%), 03 Nov 2009 (19.38%)
2007328 Feb 2007 (4.95%), 25 Jun 2007 (5.13%), 23 Jul 2007 (-7.41%)
2006312 Apr 2006 (-2.59%), 16 May 2006 (-3.61%), 12 Dec 2006 (5.76%)
2005214 Jul 2005 (9.11%), 27 Oct 2005 (11.6%)
2004524 Feb 2004 (0.53%), 22 Mar 2004 (7.65%), 07 Jul 2004 (7.76%), 08 Dec 2004 (3.46%), 30 Dec 2004 (-6.28%)

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-11027944743301369.7712255.6756405.69-6786.43-219231.814.170.116498.76
atrnil312.443761544824245022692.9144715.03-7019.84-12294.483.233.230.117836.53
atrtrail35.2819896053252847.1712324.0444715.03-3897.9-9871.183.162.820.0743753.96
atrtrail-16.3418789753252847.1711881.5559664.8-3897.9-9871.183.052.720.0633545.23
atrnil27.9825497848262254.1715512.7629810.02-6743.35-12294.482.32.720.15312.05
atrtrail24.4215774053252847.1710675.2629810.02-3897.9-9871.182.742.450.0732976.23

In the table above, row 1 shows the best exit criterion. Profit factor is 4.17. Strategy is very good and impressively bullish. Percentage of profitable trades is 69.77%, which is good. Average return per trade is 3.25%, 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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