Study: Buy HINDZINC when RSI is oversold

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In this study, we evaluate the performance of strategy "Buy HINDZINC when RSI is oversold" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy HINDZINC 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
11.17542e+07643232503731001.17329e+07-5780.03-21722.3764.5564.550.028183660
21.25626e+0764382659.383361301.24651e+07-8091.96-26712.3341.5460.710.028196290
31.23664e+0764343053.123724901.23425e+07-9941.46-46815.2937.4742.460.028193225
41.23696e+0764333151.563862861.2411e+07-12188.32-62420.3831.6933.740.028193275
51.29764e+0764343053.123945091.30945e+07-14563.5-55095.5427.0930.70.028202756
61.23686e+0764293545.314433911.25021e+07-13992.03-58105.7531.6926.260.028193260
71.24108e+0764263840.624966931.25884e+07-13242.95-59872.6137.5125.660.027193919
81.26094e+0764293545.314542741.28123e+07-16129.52-69745.2228.1623.340.027197022
91.28716e+0764333151.564065471.30329e+07-17561.71-73885.3523.1524.640.028201119
101.28837e+0764283643.754805901.30774e+07-15911.69-78025.4830.223.490.027201308

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 64.55. Strategy is very good and impressively bullish. Percentage of profitable trades is 50%, which is not acceptable. Avoid this strategy. Average return per trade is 91.83%, which is very good. Sharpe Ratio is 0.028, 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.
HINDZINC Performance, X=1, Profit Factor:64.5

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019625 Jan 2019 (0.28%), 18 Feb 2019 (1.64%), 14 May 2019 (-1.07%), 07 Jun 2019 (1.17%), 21 Jun 2019 (-1.21%), 05 Aug 2019 (0.74%)
2018223 May 2018 (-0.32%), 27 Jun 2018 (-0.48%)
2017205 May 2017 (-0.98%), 24 May 2017 (1.01%)
2015212 Aug 2015 (-1.26%), 26 Aug 2015 (2.36%)
2014119 Feb 2014 (2.05%)
2013321 Feb 2013 (-0.59%), 13 Jun 2013 (2.74%), 27 Jun 2013 (5.47%)
2012117 May 2012 (-0.17%)
2011308 Aug 2011 (-1.74%), 26 Aug 2011 (4.19%), 04 Oct 2011 (1.34%)
2010307 May 2010 (3.68%), 21 May 2010 (0.74%), 26 Nov 2010 (1.44%)
2008621 Jan 2008 (-10.86%), 18 Mar 2008 (3.77%), 01 Jul 2008 (0.91%), 16 Sep 2008 (-0.41%), 30 Sep 2008 (1.19%), 16 Oct 2008 (-6.08%)
2007212 Feb 2007 (-2.42%), 23 Nov 2007 (1.14%)
2003206 Mar 2003 (-0.63%), 31 Mar 2003 (5866.44%)
2002921 Jun 2002 (-6.54%), 12 Jul 2002 (-3.98%), 26 Jul 2002 (1.83%), 09 Aug 2002 (0.51%), 26 Aug 2002 (0.0%), 09 Sep 2002 (0.54%), 25 Sep 2002 (-0.29%), 10 Oct 2002 (2.1%), 25 Oct 2002 (0.33%)
2001225 Jul 2001 (-2.21%), 14 Sep 2001 (-6.69%)
2000502 Feb 2000 (7.3%), 17 Feb 2000 (-8.4%), 07 Mar 2000 (-1.52%), 04 Apr 2000 (8.28%), 11 May 2000 (-3.57%)
1999101 Nov 1999 (18.79%)
1998309 Feb 1998 (-9.26%), 09 Jun 1998 (-2.23%), 23 Jun 1998 (9.68%)
1997414 Oct 1997 (1.9%), 28 Oct 1997 (6.8%), 13 Nov 1997 (-0.31%), 04 Dec 1997 (-6.85%)
1996612 Mar 1996 (0.0%), 02 Apr 1996 (6.25%), 10 Jul 1996 (-0.64%), 30 Jul 1996 (-5.76%), 13 Aug 1996 (-4.0%), 10 Sep 1996 (3.0%)
1995126 Apr 1995 (-2.0%)

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-111.17542e+07643232503731001.17329e+07-5780.03-21722.3764.5564.550.028183660
atrtrail-14.881.21674e+07127418632.283167571.23173e+07-9531.11-24780.333.2315.840.01995805.93
atrnil38.3141759.37108288025.9336008.0879504.78-12080.84-25611.312.981.040.0037386.66
atrnil25.617875.51111377433.3324283.953003.19-11900.39-25611.312.041.020.0019161.04
atrtrail34.118104127438433.8618883.7279504.78-9570.19-24780.31.971.010.0007663.81
atrtrail23.8-50918.28127448334.6517092.4653003.19-9674.54-24780.31.770.94-0.0055-400.93

In the table above, row 1 shows the best exit criterion. Profit factor is 64.55. Strategy is very good and impressively bullish. Percentage of profitable trades is 50%, which is not acceptable. Avoid this strategy. Average return per trade is 91.83%, which is very good. Sharpe Ratio is 0.028, 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.

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