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

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In this study, we evaluate the performance of strategy "Buy CENTURYTEX when RSI is above 50 and there is Bullish Centerline 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 CENTURYTEX 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
16355.33135838.466244.7415558.7-3108.55-9473.682.011.260.017488.87
253261.91138561.549012.5619305.71-3767.71-6351.352.393.830.114097.07
360117.47138561.5410684.8731115.19-5072.29-7192.982.113.370.0964624.42
477869.27138561.5412243.131849.47-4015.11-7192.983.054.880.125989.94
582091.63138561.5413031.7220559.89-4432.42-8245.612.944.70.156314.74
6110411138561.5416151.8828995.76-3760.71-8771.934.296.870.178493.19
7117720139469.2314390.2731115.19-2948.09-5263.164.8810.980.189055.39
81494311311284.6214239.9628189.81-3604.22-6331.243.9521.730.2511494.7
91969001311284.6218903.8543705.8-5521.19-10796.763.4218.830.2115146.15
102135841311284.6220681.6955445.54-6957.21-8686.342.9716.350.2216429.55
Although, strategy looks good but profit factor on day 1 is less than minimum accepted value so avoid this, see below for further analysis.
CENTURYTEX Performance, X=8, Profit Factor:21.7

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2016126 Aug 2016 (+)
2015117 Dec 2015 (+)
2014110 Feb 2014 (+)
2012107 Aug 2012 (+)
2010126 Oct 2010 (+)
2009126 Aug 2009 (+)
2007115 Jun 2007 (+)
2006106 Feb 2006 (-)
2005131 Mar 2005 (+)
2003129 Sep 2003 (+)
2001106 Nov 2001 (+)
1999116 Aug 1999 (+)
1995114 Sep 1995 (-)

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
atrtrail-17.64234475149564.2929217.84137965-5697.06-8064.145.139.230.116748.23
atrnil38.21215806149564.2927781.3342524.64-6845.11-8324.824.067.310.1915414.74
atrnil24.861520431410471.4317974.1428349.76-6924.71-8324.822.66.490.210860.18
atrtrail35.79140263149564.2918749.8333193.69-5697.06-8064.143.295.920.1510018.8
atrtrail24.5131405149564.2917765.5728349.76-5697.06-8064.143.125.610.179386.06

In the table above, row 1 shows the best exit criterion. Profit factor is 9.23. Strategy is very good and impressively bullish. Percentage of profitable trades is 64.29%, which is good. Average return per trade is 8.37%, which is very good.
In the chart below, we plot cumulative trade gain versus trades using the best exit criterion.
CENTURYTEX Performance, Profit Factor:9.23

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2016126 Aug 2016 (+)
2015117 Dec 2015 (+)
2014210 Feb 2014 (-), 18 Feb 2014 (+)
2012107 Aug 2012 (+)
2010126 Oct 2010 (-)
2009126 Aug 2009 (-)
2007115 Jun 2007 (+)
2006106 Feb 2006 (-)
2005131 Mar 2005 (+)
2003129 Sep 2003 (+)
2001106 Nov 2001 (+)
1999116 Aug 1999 (+)
1995114 Sep 1995 (-)



View performance of other stocks for this trading system.