Study: Buy DRREDDY when near 200 SMA and above 200 SMA and above 50 SMA and above 20 SMA

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In this study, we evaluate the performance of strategy "Buy DRREDDY when near 200 SMA and above 200 SMA and above 50 SMA and above 20 SMA" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy DRREDDY 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
117331.771911857.893361.3616127.48-2455.4-6264.341.371.880.044912.2
216274.071912763.163144.099673.29-3065.01-7426.051.031.760.046856.53
339891.841914573.684737.3813803.07-5286.29-8211.030.92.510.0812099.57
438302.991912763.165624.9713566.29-4170.95-9537.381.352.310.0692015.95
538327.491913668.425535.6516048.95-5606-11357.490.992.140.0662017.24
655332.171912763.167320.1218305.57-4644.18-11295.731.582.70.0842912.22
774115.741911857.8910359.919971.17-4980.4-12917.592.082.860.0913900.83
858352.681912763.167857.3220932.09-5133.59-14832.011.532.620.0733071.19
983415.241914573.688189.9322581.68-6248.77-14078.331.313.670.0974390.28
1077185.321913668.428867.0620248.98-6347.75-14746.151.43.030.094062.39

From the table above, we see that best results are achieved by holding positions for 9 trading days. Profit factor is 3.67. Strategy is very good and impressively bullish. Percentage of profitable trades is 73.68%, which is good. Average return per trade is 2.2%, which is very good. Sharpe Ratio is 0.097, which is low, don't trade solely on the basis of this study.
In the chart below, we plot cumulative trade gain versus trades. This chart is important and informative as it shows the performance of strategy over time.
DRREDDY Performance, X=9, Profit Factor:3.67

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2017206 Jan 2017 (-6.93%), 03 Feb 2017 (-7.04%)
2016121 Oct 2016 (4.78%)
2012311 Jul 2012 (-1.07%), 02 Aug 2012 (0.7%), 21 Aug 2012 (0.62%)
2011109 Dec 2011 (0.05%)
2009106 Apr 2009 (7.62%)
2008228 Apr 2008 (1.07%), 13 May 2008 (11.29%)
2007104 Dec 2007 (9.48%)
2005130 Jun 2005 (-0.5%)
2004106 Dec 2004 (0.79%)
2002205 Jul 2002 (-0.09%), 23 Dec 2002 (1.81%)
2001121 Feb 2001 (0.7%)
2000225 Aug 2000 (5.72%), 16 Oct 2000 (3.12%)
1998116 Dec 1998 (9.59%)

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-1983415.241914573.688189.9322581.68-6248.77-14078.331.313.670.0974390.28
atrnil310.551193432010105017544.0228050.86-5609.69-8652.263.133.130.15967.17
atrnil26.5283169.342112957.1411283.5618700.58-5803.71-8652.261.942.590.0953960.44
atrtrail24.4364726.623111247.839852.7118700.58-3637.77-8652.262.712.480.0772814.2
atrtrail35.1751959.5323111247.838692.0720481.69-3637.77-8652.262.392.190.0642259.11
atrtrail-1646576.3923111247.838202.6921904.15-3637.77-8652.262.252.070.0592025.06
200nil22.67-6045.572481633.335814.647316.98-3285.17-3977.11.770.88-0.012-251.9
200trail22.84-10058.825718285926.077316.98-2863.41-3921.322.070.8-0.021-402.35
200trail33.21-23459.22451920.836127.639324.2-2847.23-3921.322.150.57-0.052-977.47
200nil33.7-27072.172341917.398468.739324.2-3207.74-3977.12.640.56-0.057-1177.05
200trail-13.71-26763.272451920.835466.8214508.79-2847.23-3921.321.920.51-0.058-1115.14

In the table above, row 1 shows the best exit criterion. Profit factor is 3.67. Strategy is very good and impressively bullish. Percentage of profitable trades is 73.68%, which is good. Average return per trade is 2.2%, which is very good. Sharpe Ratio is 0.097, which is low, don't trade solely on the basis of this study.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.