Study: Buy RELCAPITAL when there is bullish divergence in RSI

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In this study, we evaluate the performance of strategy "Buy RELCAPITAL when there is bullish divergence in RSI" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy RELCAPITAL 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
155965.1328151353.577828.6521514.35-4728.05-10632.911.661.910.051998.75
216582328217759693.2440499.43-5390.75-18117.091.85.390.115922.24
31848432819967.8612898.1233198.64-6691.2-29392.811.934.070.16601.55
42274362820871.4314871.148424.07-8748.29-17383.971.74.250.18122.71
52258412819967.8618774.3553938.71-14541.3-29984.181.292.730.0798065.75
6259111282177516824.860601.72-13458.59-24920.891.253.750.0969253.95
729033028181064.2922476.8758739.26-11425.39-29984.181.973.540.09510368.92
823850528181064.2919760.4259335.71-11718.22-27341.771.693.040.0828518.05
92596172819967.8619067.3252722.06-11406.88-28185.651.673.530.0949272.04
102872842819967.8619813.957486.57-9908.91-21265.8224.220.1110260.14

From the table above, we see that best results are achieved by holding positions for 2 trading days. Profit factor is 5.39. Strategy is very good and impressively bullish. Percentage of profitable trades is 75%, which is good. Average return per trade is 2.96%, 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.
RELCAPITAL Performance, X=2, Profit Factor:5.39

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019612 Feb 2019 (8.02%), 06 May 2019 (-9.06%), 25 Jun 2019 (9.85%), 09 Jul 2019 (-0.76%), 24 Jul 2019 (8.32%), 29 Aug 2019 (-0.87%)
2018210 Oct 2018 (3.34%), 25 Oct 2018 (0.86%)
2017304 Oct 2017 (-3.65%), 20 Nov 2017 (2.11%), 05 Dec 2017 (-0.75%)
2014108 Oct 2014 (0.18%)
2013121 Feb 2013 (1.72%)
2012102 Jan 2012 (5.5%)
2011214 Feb 2011 (7.9%), 23 Aug 2011 (-3.04%)
2010219 May 2010 (1.09%), 29 Nov 2010 (7.97%)
2008419 Mar 2008 (20.25%), 01 Jul 2008 (0.97%), 20 Oct 2008 (0.37%), 02 Dec 2008 (7.38%)
2001120 Sep 2001 (4.15%)
1998222 Jun 1998 (3.77%), 31 Aug 1998 (-0.74%)
1996329 Jan 1996 (0.64%), 11 Jul 1996 (6.37%), 15 Oct 1996 (1.03%)

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-1216582328217759693.2440499.43-5390.75-18117.091.85.390.115922.24
atrnil29.130942730161453.3333095.7767839.56-15721.77-31282.72.112.410.07610314.25
atrtrail-16.8816446034161847.0623862.47149513-12074.4-25711.451.981.760.0334837.07
atrnil313.6314509930111936.6742952.5288273.99-17230.44-33919.782.491.440.0314836.64
atrtrail25.4168675.9634161847.0617875.9558849.32-12074.4-25711.451.481.320.0222019.88
atrtrail35.8867152.3234161847.0617780.7235343.44-12074.4-25711.451.471.310.0231975.07

In the table above, row 1 shows the best exit criterion. Profit factor is 5.39. Strategy is very good and impressively bullish. Percentage of profitable trades is 75%, which is good. Average return per trade is 2.96%, 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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