Study: Buy SUNPHARMA when RSI is above 50 and there is Bullish Crossover in MACD

home > technical-strategy > sunpharma > 30

In this study, we evaluate the performance of strategy "Buy SUNPHARMA when RSI is above 50 and there is Bullish Crossover in MACD" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy SUNPHARMA 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
190592.21162847851.853914.3316012.21-3053.99-27175.251.281.380.023559.21
269788.94162788448.155660.633300.96-4425.45-35803.911.281.190.012430.8
356576.12162857752.475745.5151977.24-5607.69-40495.581.021.130.0082349.24
483210.01162729044.448555.8155307.34-5920.09-37665.481.451.160.01513.64
5110344162729044.449525.2269737.75-6394.14-34401.431.491.190.012681.13
6184314162788448.1510785.5291327.88-7820.92-35432.851.381.280.0161137.74
7360458162828050.6212419.03111586-8223.78-33684.481.511.550.0282225.05
838411416281815013070.7286943.25-8328.57-33929.751.571.570.032371.07
9481816162887454.3212788.6275842.93-8697.06-47331.841.471.750.0412974.17
10521276162917156.1713390.9277507.98-9821.09-46935.631.361.750.043217.75
Although, strategy looks good but profit factor on day 3 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
atrnil37.491160851775212529.3819759.6938686.95-7291.36-14296.922.711.130.01655.84
atrnil25.4657004.31846911537.513078.225791.3-7351.23-14296.921.781.070.0061309.81
atrtrail34.5540280.731826311934.6210905.2138686.95-5434.85-14104.32.011.060.0046221.32
atrtrail24.01-378.241876712035.839775.5525791.3-5461.17-14104.31.791-4.9e-05-2.02
atrtrail-15.07-49674.41826311934.629477.3555319.96-5434.85-14104.31.740.92-0.0058-272.94

In the table above, row 1 shows the best exit criterion. Profit factor is 1.13. Profit factor is showing that this strategy doesn't give any edge over rendomness and it is only as good as tossing a coin and doing the trade. Percentage of profitable trades is 29.38%, which is not acceptable. Avoid this strategy. Average return per trade is 0.33%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.01, which is low, don't trade solely on the basis of this study.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
SUNPHARMA Performance, Profit Factor:1.13

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019429 Mar 2019 (-2.7%), 11 Jul 2019 (10.7%), 30 Aug 2019 (-3.51%), 03 Sep 2019 (-3.7%)
2018412 Feb 2018 (-3.49%), 28 May 2018 (-3.56%), 01 Aug 2018 (-2.52%), 14 Aug 2018 (8.88%)
2017503 Feb 2017 (-2.25%), 17 Feb 2017 (-2.78%), 05 Oct 2017 (9.08%), 23 Nov 2017 (-3.17%), 19 Dec 2017 (8.47%)
2016427 Jan 2016 (7.87%), 18 Feb 2016 (-3.47%), 13 Apr 2016 (-2.38%), 27 May 2016 (-2.04%)
2015404 Mar 2015 (8.8%), 06 Apr 2015 (-3.28%), 18 Sep 2015 (-3.2%), 01 Oct 2015 (-2.92%)
2014723 Jan 2014 (-2.27%), 10 Feb 2014 (-2.44%), 03 Jun 2014 (8.29%), 25 Jul 2014 (-2.39%), 18 Aug 2014 (6.81%), 30 Sep 2014 (-3.11%), 28 Oct 2014 (8.57%)
2013909 Jan 2013 (-2.12%), 05 Feb 2013 (6.75%), 11 Mar 2013 (-2.03%), 04 Apr 2013 (6.21%), 29 May 2013 (-3.2%), 01 Jul 2013 (9.67%), 29 Jul 2013 (-5.14%), 30 Sep 2013 (-3.57%), 19 Dec 2013 (-2.55%)
2012809 Jan 2012 (7.13%), 02 Mar 2012 (-2.64%), 13 Apr 2012 (-2.8%), 07 Jun 2012 (8.26%), 30 Jul 2012 (6.09%), 11 Sep 2012 (-1.93%), 28 Sep 2012 (-2.24%), 23 Nov 2012 (6.91%)
2011629 Apr 2011 (-2.49%), 26 May 2011 (8.64%), 25 Jul 2011 (-2.4%), 26 Jul 2011 (-2.68%), 30 Aug 2011 (-3.34%), 11 Oct 2011 (9.63%)
2010704 Feb 2010 (10.55%), 28 Jul 2010 (-1.97%), 29 Jul 2010 (-2.16%), 20 Aug 2010 (-2.15%), 15 Sep 2010 (6.91%), 02 Nov 2010 (7.23%), 24 Dec 2010 (-3.44%)
20091111 Feb 2009 (-4.12%), 18 May 2009 (-4.64%), 19 May 2009 (-6.27%), 11 Jun 2009 (-5.3%), 15 Jul 2009 (-5.38%), 11 Aug 2009 (-4.89%), 26 Aug 2009 (-3.89%), 04 Sep 2009 (10.99%), 11 Nov 2009 (10.16%), 02 Dec 2009 (-4.02%), 22 Dec 2009 (-3.12%)
2008630 Jan 2008 (-7.05%), 21 Apr 2008 (13.31%), 30 May 2008 (-4.4%), 21 Jul 2008 (12.68%), 02 Sep 2008 (-3.46%), 30 Sep 2008 (-4.15%)
2007812 Mar 2007 (-4.04%), 21 May 2007 (-4.53%), 15 Oct 2007 (-3.6%), 16 Oct 2007 (-3.71%), 14 Nov 2007 (-4.23%), 12 Dec 2007 (-3.94%), 13 Dec 2007 (-4.43%), 20 Dec 2007 (-4.73%)
2006631 Jan 2006 (8.99%), 20 Mar 2006 (9.3%), 19 Apr 2006 (-4.07%), 04 May 2006 (-4.26%), 10 Nov 2006 (8.3%), 29 Dec 2006 (-3.67%)
2005831 Jan 2005 (-4.81%), 20 Apr 2005 (9.18%), 16 Jun 2005 (-2.84%), 27 Jun 2005 (-3.26%), 30 Jun 2005 (10.74%), 20 Jul 2005 (-3.58%), 29 Aug 2005 (-3.42%), 09 Nov 2005 (13.14%)
20041214 Jan 2004 (-4.26%), 27 Jan 2004 (11.86%), 08 Mar 2004 (-4.35%), 31 Mar 2004 (12.66%), 30 Apr 2004 (-4.56%), 26 May 2004 (-5.15%), 23 Jul 2004 (12.76%), 16 Sep 2004 (9.49%), 21 Oct 2004 (-3.78%), 02 Nov 2004 (-3.56%), 17 Nov 2004 (9.33%), 17 Dec 2004 (-3.61%)
20031318 Feb 2003 (-3.85%), 07 Mar 2003 (-4.21%), 25 Mar 2003 (-4.26%), 07 May 2003 (-3.64%), 20 May 2003 (-3.5%), 03 Jul 2003 (-4.02%), 28 Jul 2003 (12.89%), 22 Aug 2003 (12.95%), 08 Sep 2003 (-5.53%), 03 Oct 2003 (-5.32%), 17 Oct 2003 (-4.85%), 31 Oct 2003 (12.74%), 03 Dec 2003 (-4.45%)
2002307 Jan 2002 (8.44%), 20 Feb 2002 (7.92%), 23 Oct 2002 (-2.99%)
20011104 Jan 2001 (-4.11%), 19 Jan 2001 (-3.79%), 22 Mar 2001 (-5.73%), 20 Apr 2001 (-5.82%), 22 Jun 2001 (-3.09%), 13 Jul 2001 (-4.24%), 06 Sep 2001 (-3.47%), 05 Oct 2001 (-4.84%), 02 Nov 2001 (-3.49%), 12 Dec 2001 (-2.97%), 13 Dec 2001 (-3.25%)
2000321 Jan 2000 (19.34%), 18 Feb 2000 (17.63%), 12 Dec 2000 (-3.62%)
1999803 Mar 1999 (-4.02%), 04 Mar 1999 (13.22%), 22 Mar 1999 (15.55%), 05 May 1999 (-7.15%), 07 Jul 1999 (-2.85%), 06 Aug 1999 (12.3%), 09 Sep 1999 (-4.61%), 12 Nov 1999 (-7.05%)
19981002 Feb 1998 (-2.92%), 19 Mar 1998 (11.43%), 09 Apr 1998 (-4.23%), 20 May 1998 (-6.19%), 21 May 1998 (-6.8%), 30 Jun 1998 (-6.75%), 12 Aug 1998 (10.87%), 14 Sep 1998 (-4.38%), 27 Oct 1998 (-3.99%), 10 Nov 1998 (-2.73%)
19971015 Jan 1997 (-2.77%), 30 Jan 1997 (-3.39%), 31 Jan 1997 (-3.61%), 04 Mar 1997 (-3.11%), 14 Mar 1997 (-3.19%), 02 May 1997 (-2.34%), 12 Jun 1997 (-1.91%), 09 Jul 1997 (6.32%), 04 Aug 1997 (6.85%), 20 Oct 1997 (-2.3%)
1996619 Apr 1996 (-1.95%), 22 Apr 1996 (-2.16%), 04 Jun 1996 (-2.72%), 18 Jun 1996 (-2.73%), 18 Jul 1996 (-2.4%), 09 Aug 1996 (-1.98%)
1995405 May 1995 (6.99%), 17 Jul 1995 (3.96%), 14 Aug 1995 (-1.92%), 20 Oct 1995 (-1.4%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play