Study: Buy TECHM when RSI is below 50 and there is Bullish Crossover in MACD

home > technical-strategy > techm > 64

In this study, we evaluate the performance of strategy "Buy TECHM when RSI is below 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 TECHM 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
1-1385.4638172144.743680.8213598.33-3045.69-9728.061.210.98-0.0023-36.46
2-76583.8238152339.474467.2510789-6243.16-21854.460.720.47-0.082-2015.36
3-10045638132534.215754.6712339.39-7010.65-23487.120.820.43-0.091-2643.57
4-14477938122631.586225.4913257.43-8441.72-24318.060.740.34-0.12-3809.97
5-16203438112728.956957.3115096.47-8835.71-27747.820.790.32-0.12-4264.05
6-17653038112728.956879.6414123.58-9340.98-26839.940.740.3-0.13-4645.53
7-14469838122631.587819.2217423.79-9174.18-26711.270.850.39-0.1-3807.84
8-15895838102826.328431.2420980.27-8688.21-26260.940.970.35-0.12-4183.09
9-14592838112728.959995.7519082.49-9477.07-28924.341.050.43-0.094-3840.2
10-10945538132534.2111574.9438120.26-10397.19-27367.471.110.58-0.057-2880.41

From the table above, we see that best results are achieved by holding positions for 1 trading days. Profit factor is 0.98. 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 44.74%, which is not acceptable. Avoid this strategy. Average return per trade is -0.018%, we advise you not to use 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-11-1385.4638172144.743680.8213598.33-3045.69-9728.061.210.98-0.0023-36.46
atrnil37.7-55786.324493520.4524364.7835653.85-7859.12-29339.343.10.8-0.025-1267.87
atrnil25.8-76281.3245123326.671539323769.23-7909.01-29339.341.950.71-0.041-1695.14
atrtrail24.51-93344.9145133228.897704.2618359.68-6046.88-19917.741.270.52-0.074-2074.33
atrtrail34.77-11348544123227.276667.9221280.39-6046.88-19917.741.10.41-0.097-2579.21
atrtrail-14.86-14110744123227.274366.18381.09-6046.88-19917.740.720.27-0.15-3206.98

In the table above, row 1 shows the best exit criterion. Profit factor is 0.98. 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 44.74%, 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.
TECHM Performance, X=1, Profit Factor:0.978

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2019207 Jun 2019 (2.32%), 17 Jul 2019 (-0.52%)
2018120 Jul 2018 (-1.65%)
2017507 Feb 2017 (0.8%), 25 Apr 2017 (-2.53%), 25 May 2017 (0.74%), 14 Jun 2017 (-0.77%), 29 Jun 2017 (-1.76%)
2016405 Jan 2016 (0.61%), 25 Jan 2016 (-2.23%), 09 Aug 2016 (-1.05%), 01 Sep 2016 (0.58%)
2015409 Apr 2015 (-1.52%), 06 May 2015 (0.88%), 15 Jun 2015 (-0.47%), 13 Jul 2015 (0.23%)
2014126 Mar 2014 (1.0%)
2013202 May 2013 (2.17%), 24 May 2013 (0.23%)
2011516 Feb 2011 (4.0%), 24 May 2011 (-2.04%), 06 Sep 2011 (4.37%), 12 Oct 2011 (3.55%), 08 Dec 2011 (-2.77%)
2010618 Feb 2010 (-1.96%), 05 Mar 2010 (-2.16%), 18 May 2010 (-4.86%), 02 Jun 2010 (6.8%), 19 Aug 2010 (-0.66%), 03 Dec 2010 (-0.52%)
2009130 Jan 2009 (-1.03%)
2008305 Feb 2008 (-1.66%), 09 Jul 2008 (-0.24%), 31 Oct 2008 (1.5%)
2007414 Mar 2007 (1.31%), 09 Apr 2007 (-1.12%), 17 Aug 2007 (-0.43%), 23 Nov 2007 (0.19%)



View performance of other stocks for this trading system.

Get Clearnifty's Android App.

Get clearnifty on Google Play
Get clearnifty on Google Play