Study: Buy PIRHEALTH when RSI is oversold

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In this study, we evaluate the performance of strategy "Buy PIRHEALTH when 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 PIRHEALTH 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
119140.86148657.144297.7919096.08-2540.24-5794.491.692.260.121367.2
236713.78148657.146749.223406.17-2879.97-3884.462.343.120.182622.41
391706.981410471.4311993.8340484.43-7057.83-11245.081.74.250.246550.5
41256001412285.7112100.6840138.41-9804.03-15941.111.237.410.358971.44
51205151412285.7111379.2834717.42-8018.18-10889.711.428.520.368608.21
6115782149564.2917221.8944073.71-7842.98-10098.392.23.950.258270.15
769474.15148657.1416729.5734013.94-10727.07-31095.921.562.080.154962.44
845818.81148657.1416516.2733914.34-14385.22-27460.861.151.530.0893272.77
99393.8914775014328.9929183.27-12987.01-38402.021.11.10.019670.99
10-11755.14148657.1412126.8522717.75-18128.33-55461.580.670.89-0.021-839.65

From the table above, we see that best results are achieved by holding positions for 5 trading days. Profit factor is 8.52. Strategy is very good and impressively bullish. Percentage of profitable trades is 85.71%, which is excellent. Average return per trade is 4.3%, 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.
PIRHEALTH Performance, X=5, Profit Factor:8.52

Yearwise Summary of trades in above chart

YearNumber of TradesTrade Dates
2012218 May 2012 (1.41%), 03 Sep 2012 (5.86%)
2011628 Jan 2011 (2.18%), 11 Feb 2011 (4.68%), 31 Mar 2011 (5.43%), 18 May 2011 (-5.44%), 08 Jun 2011 (0.61%), 09 Aug 2011 (2.62%)
2010228 Jan 2010 (12.53%), 12 Nov 2010 (0.22%)
2009206 Feb 2009 (4.25%), 20 Feb 2009 (17.36%)
2008208 Oct 2008 (-2.57%), 23 Oct 2008 (11.13%)

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-151205151412285.7111379.2834717.42-8018.18-10889.711.428.520.368608.21
atrtrail35.671272172113861.915120.749266.17-8669.01-15533.881.742.830.196057.95
atrtrail2590486.92113861.912295.332844.12-8669.01-15533.881.422.30.164308.9
atrnil26.7173772.112191242.8621474.0747574.97-9957.88-20646.252.161.620.0973512.96
atrtrail-16.3340985.252112957.149809.221956.39-8525.02-15533.881.151.530.0861951.68
atrnil310.8935095.671861233.3327423.7649266.17-10787.24-23787.482.541.270.0481949.76

In the table above, row 1 shows the best exit criterion. Profit factor is 8.52. Strategy is very good and impressively bullish. Percentage of profitable trades is 85.71%, which is excellent. Average return per trade is 4.3%, which is very good.
Performance of strategy chart over time is same as above.

View performance of other stocks for this trading system.