Study: Buy ORIENTBANK when there is bullish divergence in RSI and ADX is Trending

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In this study, we evaluate the performance of strategy "Buy ORIENTBANK when there is bullish divergence in RSI 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: buy ORIENTBANK 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
153011.38251510605543.311320.75-3013.81-9518.041.842.760.0792120.46
212412725196768621.0119142.08-6611.96-17020.021.34.130.124965.09
3153555251877211849.7826111.11-8534.43-24734.771.393.570.116142.2
4215437251967613521.9827423.75-6913.42-13486.451.966.190.168617.48
5182126251696415125.0726382.35-6652.75-25886.632.274.040.127285.06
6127943251786813821.227324.57-13377.24-33343.441.032.20.075117.7
798680.17251696413249.5533141.92-12590.3-36526.951.051.870.0513947.21
8112937251786814158.2149548.81-15969.07-33889.060.891.880.0514517.48
9112527251877213776.8540689.09-19350.92-36826.350.711.830.054501.07
10107681251696415310.7643150.12-15254.57-35528.9411.780.0484307.24

From the table above, we see that best results are achieved by holding positions for 4 trading days. Profit factor is 6.19. Strategy is very good and impressively bullish. Percentage of profitable trades is 76%, which is excellent. Average return per trade is 4.31%, 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.
ORIENTBANK Performance, X=4, Profit Factor:6.19

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2018209 Mar 2018 (10.52%), 08 Oct 2018 (6.08%)
2016203 Feb 2016 (3.14%), 24 Feb 2016 (-0.99%)
2015326 Feb 2015 (11.02%), 08 Apr 2015 (13.71%), 07 Sep 2015 (2.91%)
2013225 Jul 2013 (-5.94%), 16 Aug 2013 (2.89%)
2012103 Jan 2012 (5.63%)
2011108 Feb 2011 (10.1%)
2010108 Dec 2010 (8.29%)
2008213 Jun 2008 (5.87%), 04 Jul 2008 (9.94%)
2007108 Mar 2007 (-3.75%)
2006109 Jun 2006 (-6.74%)
2000222 Feb 2000 (7.36%), 17 Oct 2000 (0.87%)
1998222 Jun 1998 (5.02%), 20 Oct 1998 (10.14%)
1997209 Sep 1997 (-0.4%), 13 Nov 1997 (0.77%)
1996225 Sep 1996 (-2.91%), 10 Oct 1996 (5.33%)
1995103 May 1995 (8.87%)

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-14215437251967613521.9827423.75-6913.42-13486.451.966.190.168617.48
atrtrail25.2321971231211067.7415264.8329140-10084.93-18387.831.513.180.17087.49
atrnil313.7627466229141548.2833776.7747975.68-13214.22-19416.362.562.390.089471.09
atrtrail36.7413299531201164.5211883.5331777.49-9515.93-18387.831.252.270.0684290.18
atrtrail-17.0311965331201164.5211216.4343518.38-9515.93-18387.831.182.140.0613859.79
atrnil27.4518195929161355.1722408.2331983.79-13582.49-19416.361.652.030.0696274.46

In the table above, row 1 shows the best exit criterion. Profit factor is 6.19. Strategy is very good and impressively bullish. Percentage of profitable trades is 76%, which is excellent. Average return per trade is 4.31%, 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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