Study: Sell INDUSINDBK when RSI is below 50 and there is Bearish Crossover in MACD and ADX is Trending

home > technical-strategy > indusindbk > 28

In this study, we evaluate the performance of strategy "Sell INDUSINDBK when RSI is below 50 and there is Bearish Crossover in MACD and ADX is Trending" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: sell INDUSINDBK 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. buy 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
129339.0924131154.176979.0325571.73-5580.75-15478.621.251.480.0311222.46
2-46952.142481633.337825.5817879.42-6847.3-32812.51.140.57-0.045-1956.34
3-59784.3246182513425.730864.2-7796.58-33928.571.720.57-0.047-2491.01
418342.2524101441.6711478.2640123.46-6888.6-23102.681.671.190.014764.26
51587.432412125010422.3634567.9-10290.08-23325.891.011.010.001166.14
65078.5424111345.839829.3127160.49-7926.45-21262.931.241.050.0041211.61
735690.7824111345.8310880.0134688.35-6460.72-14553.011.681.420.0311487.12
866484.0924141058.3311357.2340379.4-9251.71-26819.131.231.720.0472770.17
956019.8824111345.831530438753.39-8640.31-25155.931.771.50.0362334.16
1058667.6924131154.1711339.7326829.27-8068.07-24376.731.411.660.0432444.49
Although, strategy looks good but profit factor on day 2 is less than minimum accepted value so avoid this, see below for further analysis.

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
atrnil25.54-14999.052882028.5726300.339879.93-11270.07-25447.842.330.93-0.0065-535.68
atrtrail23.1-47070.282982127.5919638.4739879.93-9722.76-24281.552.020.77-0.023-1623.11
atrtrail33.64-92197.31287212512860.5228967.91-8677.19-24259.921.480.49-0.064-3292.76
atrnil37.52-1514922742314.8129030.3743981.84-11635.39-25447.842.50.43-0.081-5610.83
atrtrail-13.79-104272287212511135.5529403.99-8677.19-24259.921.280.43-0.077-3724.01

In the table above, row 1 shows the best exit criterion. Profit factor is 0.93. Profit factor is showing that this strategy doesn't give any edge over rendomness and it is only as good as tossing a coin and doing the trade. Percentage of profitable trades is 28.57%, which is not acceptable. Avoid this strategy. Average return per trade is -0.27%, we advise you not to use this strategy.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
INDUSINDBK Performance, Profit Factor:0.933

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019222 Aug 2019 (-4.03%), 04 Sep 2019 (-4.26%)
2018229 Jun 2018 (-2.1%), 22 Oct 2018 (-4.48%)
2014107 Jul 2014 (-2.92%)
2011507 Jan 2011 (-5.14%), 28 Jan 2011 (-5.67%), 09 Feb 2011 (-5.52%), 10 Feb 2011 (-5.5%), 09 Nov 2011 (7.01%)
2010127 Jan 2010 (-4.78%)
2008212 Feb 2008 (-12.72%), 19 Nov 2008 (19.94%)
2007112 Feb 2007 (13.11%)
2006222 Feb 2006 (-3.56%), 02 Mar 2006 (7.38%)
2005124 Aug 2005 (-5.24%)
2004321 Jan 2004 (13.7%), 14 May 2004 (19.74%), 17 May 2004 (-12.14%)
2003327 Jan 2003 (-4.84%), 10 Mar 2003 (-4.25%), 13 May 2003 (-3.6%)
2002115 May 2002 (9.66%)
2001118 Sep 2001 (-7.37%)
1999201 Feb 1999 (-6.48%), 27 Dec 1999 (-8.11%)
1998106 Oct 1998 (14.66%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play