Study: Sell RPOWER when RSI is below 50 and there is Bearish Crossover in MACD

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

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: sell RPOWER 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
196592.4563313249.215625.6222890.4-2431.31-8233.282.312.240.0821533.21
216516763392461.96577.4424442.29-3806.37-10488.251.732.810.112621.7
321007863451871.436803.1826595.74-5336.96-10666.671.273.190.133334.57
423442763432068.257625.8923472.36-4674.3-11819.61.633.510.143721.07
524881762392362.99119.0830724.64-4644.67-13722.131.963.330.134013.17
626952762392362.910541.9252439.02-6156.87-19554.031.712.90.114347.21
733409962412166.1311483.6669512.2-6510.99-18181.821.763.440.125388.7
826817662402264.5211608.1342682.93-8915.86-22298.461.32.370.0994325.42
923444162402264.5211801.0148695.65-10799.98-27993.781.091.990.0793781.3
1026754062382461.2913959.6577142.86-10955.28-34836.71.272.020.0714315.16

From the table above, we see that best results are achieved by holding positions for 4 trading days. Profit factor is 3.51. Strategy is very good and impressively bearish. Percentage of profitable trades is 68.25%, which is good. Average return per trade is 1.86%, which is not very high, don't trade solely on the basis of this study.
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.
RPOWER Performance, X=4, Profit Factor:3.51

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019321 Jan 2019 (-0.18%), 18 Apr 2019 (3.66%), 10 Jun 2019 (6.09%)
2018906 Mar 2018 (4.98%), 20 Apr 2018 (5.89%), 14 May 2018 (-0.15%), 26 Jun 2018 (8.41%), 16 Jul 2018 (-5.83%), 16 Aug 2018 (-5.91%), 12 Sep 2018 (8.7%), 26 Nov 2018 (3.16%), 26 Dec 2018 (-4.34%)
2017713 Feb 2017 (-0.11%), 13 Apr 2017 (0.32%), 03 May 2017 (1.04%), 03 Aug 2017 (3.06%), 28 Sep 2017 (1.1%), 08 Nov 2017 (1.41%), 04 Dec 2017 (-0.82%)
2016715 Jan 2016 (4.79%), 22 Jun 2016 (2.53%), 18 Jul 2016 (-0.97%), 03 Aug 2016 (-2.34%), 02 Sep 2016 (-3.18%), 03 Nov 2016 (6.55%), 26 Dec 2016 (-4.3%)
2015706 Feb 2015 (1.25%), 05 Mar 2015 (1.8%), 24 Apr 2015 (1.56%), 02 Jun 2015 (11.74%), 27 Jul 2015 (1.04%), 13 Aug 2015 (-3.07%), 08 Dec 2015 (0.92%)
2014306 Jan 2014 (5.54%), 25 Aug 2014 (5.27%), 17 Nov 2014 (2.87%)
2013911 Jan 2013 (0.48%), 25 Jan 2013 (2.38%), 20 Mar 2013 (11.12%), 23 May 2013 (-1.31%), 30 Jul 2013 (7.87%), 19 Aug 2013 (0.65%), 01 Oct 2013 (-4.22%), 12 Nov 2013 (-1.82%), 13 Dec 2013 (1.55%)
2012222 Aug 2012 (4.15%), 20 Dec 2012 (3.18%)
2011611 Jan 2011 (7.02%), 21 Feb 2011 (4.67%), 18 Apr 2011 (-2.04%), 20 Jun 2011 (-2.13%), 18 Jul 2011 (-0.48%), 17 Nov 2011 (0.55%)
2010321 Jan 2010 (5.75%), 05 May 2010 (6.2%), 15 Oct 2010 (0.03%)
2009507 Jan 2009 (9.22%), 26 Feb 2009 (2.36%), 07 Aug 2009 (-1.61%), 05 Oct 2009 (1.66%), 16 Dec 2009 (0.28%)
2008219 Aug 2008 (1.18%), 17 Sep 2008 (-1.91%)

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-1423442763432068.257625.8923472.36-4674.3-11819.61.633.510.143721.07
atrnil311.332694361253640.9824117.1849390.18-7666.29-12228.883.152.180.0975359.72
atrnil27.492817346834345015977.3732926.79-7691.07-12228.882.082.080.14143.15
atrtrail-15.6918616970304042.8613172.6955194.25-5225.28-9803.832.521.890.0612659.56
atrtrail34.9414953371314043.6611565.9349390.18-5225.28-9803.832.211.720.0562106.09
atrtrail24.2913529172314143.0611183.5932926.79-5156.1-9803.832.171.640.0581879.04

In the table above, row 1 shows the best exit criterion. Profit factor is 3.51. Strategy is very good and impressively bearish. Percentage of profitable trades is 68.25%, which is good. Average return per trade is 1.86%, which is not very high, don't trade solely on the basis of this study.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.

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