Study: Buy HDFCBANK when above 200 SMA and RSI is oversold

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In this study, we evaluate the performance of strategy "Buy HDFCBANK when above 200 SMA and RSI is oversold" under various conditions.

X Analysis

In the table below, we find out the performance of this trading strategy under following scenario: buy HDFCBANK 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
152845.36118372.737283.4715995.85-1807.46-3249.634.0310.750.184804.12
280263.46119281.829615.333290.05-3137.12-3519.833.0713.790.177296.68
31061091110190.9110615.9734951.96-50.64-50.64209.622096.210.29646.28
4121917119281.8213989.2442015.06-1993.17-2973.477.0231.580.1911083.35
51328451110190.9113782.5540405.09-4980.3-4980.32.7727.670.2312076.83
61053321110190.9111033.3121189.3-5001.31-5001.312.2122.060.39575.61
71086541110190.9111626.1530693.33-7607.04-7607.041.5315.280.29877.67
81407531111010012795.7635211.6300infinf0.2712795.76
91634641111010014860.3634432.6100infinf0.3214860.36
10165780119281.8218518.7941080.24-444.5-531.7641.66187.480.2715070.92

From the table above, we see that best results are achieved by holding positions for 8 trading days. Profit factor is inf. Strategy is very good and impressively bullish. Percentage of profitable trades is 100%, which is excellent. Average return per trade is 6.4%, which is very good.
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.
HDFCBANK Performance, X=8, Profit Factor:inf

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2016123 Nov 2016 (0.98%)
2015107 May 2015 (5.91%)
2013101 Mar 2013 (1.99%)
2012123 May 2012 (1.73%)
2008122 Jan 2008 (10.14%)
2007126 Feb 2007 (2.35%)
2005224 Mar 2005 (6.53%), 28 Oct 2005 (3.97%)
2004122 Mar 2004 (13.43%)
2000106 Apr 2000 (17.61%)
1997122 Aug 1997 (5.74%)

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-181407531111010012795.7635211.6300infinf0.2712795.76
atrtrail23.8313528512937516560.3238815.65-4585.99-6181.893.6110.830.1911273.74
atrnil24.1713812912937517404.1238815.65-6169.38-82732.828.460.1911510.75
atrtrail-15.4279810.212937510396.4621967.48-4585.99-6181.892.276.80.166650.85
atrtrail35.0878885.8412937510293.7621892.38-4585.99-6181.892.246.730.166573.82
atrnil310.33144282127558.3325833.0558223.48-7309.91-13890.193.534.950.1312023.49

In the table above, row 1 shows the best exit criterion. Profit factor is inf. Strategy is very good and impressively bullish. Percentage of profitable trades is 100%, which is excellent. Average return per trade is 6.4%, which is very good.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.