Study: Sell TATAPOWER when RSI is below 50 and there is Dead Cross (50 DMA < 200 DMA)

home > technical-strategy > tatapower > 50

In this study, we evaluate the performance of strategy "Sell TATAPOWER when RSI is below 50 and there is Dead 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: sell TATAPOWER 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
18916.181811761.112984.166810.9-3415.65-9350.650.871.370.025495.34
26262.521810855.564830.317253.89-5255.08-10389.610.921.150.012347.92
3-4040.981811761.116068.812670.11-10113.97-20259.740.60.94-0.0051-224.5
4-4760.811811761.117134.4922355.77-11891.46-21428.570.60.94-0.0046-264.49
5-24697.531810855.568884.9519711.54-14193.38-29713.990.630.78-0.02-1372.09
6-64915.711810855.568642.6725129.53-18917.8-31775.320.460.57-0.047-3606.43
7-96109.991881044.446806.5611421.01-15056.25-25777.780.450.36-0.09-5339.44
8-78688.821881044.447740.719170.98-14061.44-23349.80.550.44-0.071-4371.6
9-80735.171899508784.9820725.39-17755.55-30320.990.490.49-0.062-4485.29
10-73517.461899508458.0424740.93-16626.65-27061.730.510.51-0.058-4084.3

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 1.37. Strategy is showing mildly bearish results but we advice not to take a call solely on the basis of this study. Percentage of profitable trades is 61.11%, which is good. Average return per trade is 0.25%, which is low, don't trade solely on the basis of this study. Sharpe Ratio is 0.025, which is low, don't trade solely on the basis of this study. Maximum losing trade is greater than maximum winning trade which is not good and there can be a huge drawdown before profitability. Win loss ratio is less than 1 which is bad, avoid this strategy.

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-118916.181811761.112984.166810.9-3415.65-9350.650.871.370.025495.34
atrtrail23.9513116.551991047.378627.8616999.68-6453.42-13351.981.341.20.015690.34
atrtrail34.428847.591991047.378153.5425499.52-6453.42-13351.981.261.140.0095465.66
atrtrail-14.58-11164.861991047.375929.9316952.02-6453.42-13351.980.920.83-0.016-587.62
atrnil38-34095.451941521.0522430.2425499.52-8254.43-16787.642.720.72-0.028-1794.5
atrnil25.37-46007.241951426.3214362.1516999.68-8415.57-16787.641.710.61-0.047-2421.43

In the table above, row 1 shows the best exit criterion. Profit factor is 1.37. Strategy is showing mildly bearish results but we advice not to take a call solely on the basis of this study. Percentage of profitable trades is 61.11%, which is good. Average return per trade is 0.25%, which is low, don't trade solely on the basis of this study. Sharpe Ratio is 0.025, which is low, don't trade solely on the basis of this study. Maximum losing trade is greater than maximum winning trade which is not good and there can be a huge drawdown before profitability. Win loss ratio is less than 1 which is bad, avoid this strategy.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
TATAPOWER Performance, X=1, Profit Factor:1.37

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019114 Feb 2019 (-2.44%)
2017108 Sep 2017 (-4.68%)
2014116 Oct 2014 (-1.43%)
2013119 Mar 2013 (-0.41%)
2012117 May 2012 (0.05%)
2011128 Jan 2011 (1.59%)
2010131 May 2010 (2.33%)
2008115 Jul 2008 (1.74%)
2004128 Jun 2004 (1.08%)
2002226 Apr 2002 (0.04%), 05 Aug 2002 (-0.52%)
2001121 Sep 2001 (-0.85%)
1999227 Feb 1999 (2.85%), 19 Nov 1999 (2.31%)
1998108 Jun 1998 (0.61%)
1997122 Sep 1997 (0.4%)
1996130 Sep 1996 (3.41%)
1995124 Nov 1995 (-1.63%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play