Study: Buy TATAGLOBAL when there is Golden Cross (50 DMA > 200 DMA)

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In this study, we evaluate the performance of strategy "Buy TATAGLOBAL when there is Golden Cross (50 DMA > 200 DMA)" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy TATAGLOBAL 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
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

In the table above, row 1 shows the best exit criterion. Profit factor is 0.99. 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 22.73%, which is not acceptable. Avoid this strategy. Average return per trade is -0.018%, we advise you not to use this strategy.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
TATAGLOBAL Performance, Profit Factor:0.992

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019106 Jun 2019 (-1.71%)
2017106 Mar 2017 (-2.64%)
2016225 Jan 2016 (-1.95%), 26 Jul 2016 (5.52%)
2014127 May 2014 (-2.85%)
2013106 Sep 2013 (-0.05%)
2012108 Feb 2012 (-0.37%)
2009120 May 2009 (9.74%)
2008107 Apr 2008 (1.06%)
2007101 Jun 2007 (-5.0%)
2003324 Jan 2003 (-2.86%), 27 Jan 2003 (-3.07%), 24 Feb 2003 (-2.83%)
2002205 Mar 2002 (-4.13%), 06 Mar 2002 (-3.51%)
2001120 Feb 2001 (-5.25%)
1999213 Jan 1999 (-3.91%), 14 Jan 1999 (-3.84%)
1997205 May 1997 (-3.62%), 06 May 1997 (25.64%)
1996202 May 1996 (-3.53%), 05 Jun 1996 (8.77%)

View performance of other stocks for this trading system.

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