Study: Buy TATAPOWER when near 200 SMA and above 200 SMA and RSI is above 50 and ADX is Trending

home > technical-strategy > tatapower > 8

In this study, we evaluate the performance of strategy "Buy TATAPOWER when near 200 SMA and above 200 SMA and RSI is above 50 and ADX is Trending" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy 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. 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
1-9188.0121111052.382877.488463.77-4084.03-16009.420.70.78-0.018-437.52
24811.1121101147.623959.457884.06-3162.12-6228.371.251.140.011229.1
3-2469.952181338.16373.2620280.61-4112-17186.581.550.95-0.0034-117.62
4-37843.3821111052.385398.5211826.09-9722.71-26183.840.560.61-0.037-1802.07
5-19904.0721101147.628129.6124413.9-9200.01-31547.970.880.8-0.016-947.81
6-3602.6921111052.386633.2521097.05-7656.84-19894.060.870.95-0.0037-171.56
72966.7821101147.628772.8523990.36-7705.61-25779.871.141.040.0027141.28
8-47976.582181338.18316.5124352.02-8808.36-24249.560.940.58-0.044-2284.6
9-91140.312151623.818963.6624593.13-8497.41-20821.731.050.33-0.088-4340.01
10-7133.2521101147.626485.0125798.67-6543.94-12173.910.990.9-0.0079-339.68
Although, strategy looks good but profit factor on day 1 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
atrnil26.1321586.442381534.7815500.8123143.08-6828-12047.522.271.210.017938.54
200trail31.861211.282972224.148948.9211992.35-2792.33-3936.923.21.020.001741.77
atrnil37.17264.442351821.7424703.1634714.62-6847.3-12047.523.6110.0001711.5
200nil31.9-832.342972224.148948.9211992.35-2885.22-3936.923.10.99-0.0011-28.7
200trail-12.66-14369.222962320.697862.4218886.08-2675.82-3936.922.940.77-0.019-495.49
atrtrail34.6-28103.8925718289861.8728020.14-5396.5-12047.521.830.71-0.027-1124.16
200trail21.66-20165.7432824255909.487994.9-2810.07-3936.922.10.7-0.033-630.18
atrtrail24.44-29536.0225718289657.2818680.09-5396.5-12047.521.790.7-0.03-1181.44
200nil21.69-22209.3632824255909.487994.9-2895.22-3936.922.040.68-0.036-694.04
atrtrail-14.76-37825.1425718288473.1218196.56-5396.5-12047.521.570.61-0.041-1513.01

In the table above, row 1 shows the best exit criterion. Profit factor is 1.21. 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 34.78%, which is not acceptable. Avoid this strategy. Average return per trade is 0.47%, which is not very high, don't trade solely on the basis of this study. Sharpe Ratio is 0.017, 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.
TATAPOWER Performance, Profit Factor:1.21

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019112 Mar 2019 (-3.3%)
2018209 Apr 2018 (5.1%), 14 Nov 2018 (-4.33%)
2017110 Nov 2017 (5.0%)
2013311 Mar 2013 (-2.51%), 15 Mar 2013 (-2.49%), 24 Dec 2013 (-3.66%)
2012201 Feb 2012 (-3.51%), 11 Jul 2012 (-3.1%)
2011211 Apr 2011 (-2.69%), 26 Apr 2011 (-2.4%)
2009120 Apr 2009 (10.47%)
2004111 Oct 2004 (-2.88%)
2003114 Jan 2003 (4.79%)
2002126 Dec 2002 (-2.53%)
2001103 Dec 2001 (9.34%)
2000205 Jan 2000 (8.32%), 08 Feb 2000 (11.57%)
1999121 May 1999 (-6.02%)
1998130 Mar 1998 (7.41%)
1997203 Mar 1997 (-4.28%), 21 Mar 1997 (-4.07%)
1995121 Dec 1995 (-3.44%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play