Study: Buy PIDILITIND 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 PIDILITIND 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 PIDILITIND 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
1-429.4393633.334522.675623.6-2332.91-6702.571.940.97-0.0026-47.71
2-4039.4496366.672476.664768.89-6299.81-11490.130.390.79-0.019-448.83
3-453.796366.672870.726676.45-5892.68-11968.880.490.97-0.002-50.41
43760.4595455.566193.9711109.19-6802.35-13764.210.911.140.011417.83
519421.6595455.568502.8212972.23-5773.12-13524.841.471.840.0552157.96
615387.995455.5611350.3315249.27-10340.94-17474.571.11.370.031709.77
7-20188.6795455.5611804.8825418.06-19803.27-48157.010.60.75-0.022-2243.19
85436.5896366.6711678.3925150.5-21544.59-30253.710.541.080.007604.06
95326.8396366.679662.6218729.1-17549.63-28725.310.551.10.008591.87
105338.2597277.789383.1119933.11-30171.75-30281.270.311.090.0069593.14
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
atrnil3102.536570264266.6796845.27320339-10839.5-14248.678.9317.870.1160950.34
atrnil291.8323657564266.6764563.51213559-10839.5-14248.675.9611.910.139429.17
atrtrail217.1733527.9365183.338886.7514946.05-10905.8-10905.80.814.070.135587.99
atrtrail31821373.3565183.336455.839837.59-10905.8-10905.80.592.960.113562.23
atrtrail-11821373.3565183.336455.839837.59-10905.8-10905.80.592.960.113562.23

In the table above, row 1 shows the best exit criterion. Profit factor is 17.87. Number of signals (total trades) generated is low, don't trade solely on the basis of this study. Strategy is very good and impressively bullish. Percentage of profitable trades is 66.67%, which is good. Average return per trade is 30.48%, which is very good. Average holding period is on the higher side, note this before entering the trade that you you may need to hold the positions for a longer time.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
PIDILITIND Performance, Profit Factor:17.9

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2016123 Nov 2016 (-3.72%)
2013103 Sep 2013 (11.21%)
2011120 Dec 2011 (11.58%)
2008115 Oct 2008 (-7.12%)
2005130 Sep 2005 (160.17%)
2004126 Mar 2004 (10.73%)



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