Study: Sell LICHSGFIN when RSI is below 50 and ADX is Trending and there is Dead Cross (50 DMA < 200 DMA)

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In this study, we evaluate the performance of strategy "Sell LICHSGFIN when RSI is below 50 and ADX is Trending and there is Dead 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: sell LICHSGFIN 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
118875.9117463.644654.6811101.86-3426.71-6145.251.362.380.0671715.99
260419.45118372.738787.7216070.69-3294.1-5193.582.677.110.165492.68
395390.03117463.6417106.5742170.16-6088.99-9537.32.814.920.118671.82
481437.09117463.6418356.7453884.09-11765.02-25496.621.562.730.0767403.37
580340.5117463.6418841.1543814.22-12886.89-28901.991.462.560.0787303.68
692587.84118372.7321470.2252938.76-26391.31-58982.750.812.170.0618417.08
765655.07118372.7318642.739580.76-27828.84-63392.270.671.790.0465968.64
88290.37118372.7312265.9117073.17-29945.64-67146.910.411.090.0065753.67
9-1844.19118372.7311074.2120121.95-30145.95-71643.750.370.98-0.0014-167.65
1012677.41118372.7312105.7222967.48-28056.12-60379.830.431.150.0111152.49

From the table above, we see that best results are achieved by holding positions for 2 trading days. Profit factor is 7.11. Strategy is very good and impressively bearish. Percentage of profitable trades is 72.73%, which is good. Average return per trade is 2.75%, 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.
LICHSGFIN Performance, X=2, Profit Factor:7.11

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019111 Sep 2019 (-0.16%)
2013121 Mar 2013 (-2.6%)
2011107 Jan 2011 (6.13%)
2008215 Jul 2008 (-2.18%), 21 Oct 2008 (8.04%)
2006123 May 2006 (0.64%)
2004126 May 2004 (4.69%)
2002101 Nov 2002 (0.78%)
1997123 Oct 1997 (6.3%)
1996217 Jan 1996 (3.75%), 14 Nov 1996 (4.82%)

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-1260419.45118372.738787.7216070.69-3294.1-5193.582.677.110.165492.68
atrnil25.27142514118372.7321891.535331.25-10872.5-15124.372.015.370.1612955.86
atrnil330.27176814117463.6431821.1152996.88-11483.56-15124.372.774.850.1416073.96
atrtrail35.55116625118372.7319202.3152996.88-12331.1-14723.91.564.150.1110602.29
atrtrail23.8295269.17118372.7316532.8135331.25-12331.1-14723.91.343.580.118660.83
atrtrail-16.2787254.55118372.7315530.9835563.22-12331.1-14723.91.263.360.117932.23

In the table above, row 1 shows the best exit criterion. Profit factor is 7.11. Strategy is very good and impressively bearish. Percentage of profitable trades is 72.73%, which is good. Average return per trade is 2.75%, 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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