Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Simple Excel Filter based on SMA – Backtesting of Simple Trading System

1 min read

 
Here is a simple Excel Filter to Find out Hot Nifty Stocks.

And i use to compare the 30day and 50 day Simple Moving Average with the current price
and If current price is greater than the 30 and 50 day Simple Moving Average(SMA)
then i like to rate as a hot Nifty Stock

You can get the SMA values from moneycontrol website

http://www.moneycontrol.com/technicals/simplymovingavgs.php

And After Scanning Using MS Excel i found  these stocks from Nifty
matched the criteria

Cipla
GAIL
HDFC Bank
HUL
Maruti Suzuki
NTPC
PNB

So Its time to track the performance of these Nifty stocks and i like to produce a weekly report
based on the performance of this simple trading system.if the performance is good over a week
then the same will be extended to the non nifty stocks.

Here Iam not betting on the trading system. Just Simply  Backtesting

You can download it from here…. With just a simple formula and a filter to find out
whether a stock is hot for the next week

http://rajandran.googlepages.com/StockFilter19thSep.xls

Futher Filters RSI(14 day) and Stoch(5,3) are added and the stock
is picked if the RSI>50 and stoch is facing upwards and not above 80.

If we apply this filter we would get these reults

Cipla(232.85)

– RSI>50 and stoch facing upwards
– Selected – RSI Value – 54.53 and Stoch – Upwards and not above 80

GAIL(418.15) – RSI>50 and stoch facing upwards – Selected

– RSI>50 and stoch facing upwards
– Selected – RSI Value – 55.95 and Stoch – Upwards and not above 80

HDFC Bank(1,299.55)

– RSI>50 and stoch facing upwards
– Selected – RSI Value – 57.02 and Stoch – Upwards and not above 80

HUL(245.20)

– RSI>50 and stoch facing upwards
– Selected – RSI Value – 52.46 and Stoch – Upwards and not above 80

Maruti Suzuki(741.05)

– RSI>50 and stoch facing upwards
– Selected – RSI Value – 64.66 and Stoch – Upwards and not above 80

NTPC(182.95)

– RSI>50 and stoch facing upwards
– Selected – RSI Value – 58.97 and Stoch – Upwards and not above 80

PNB(523.65)

– RSI>50 and stoch facing upwards
– Selected – RSI Value – 59.75 and Stoch – Upwards and not above 80

so almost all the stocks are ready to be backtest for the week.
And this is a continious process. i.e if the stock fails meeting the
SMA filter criteria and RSI and stocastic criteria it.. We should simply exit the stock and the process to be repreated every end of the day until the week ends.

And you may further filter based on ADX, EMA, Money Flow , Candle Stick Patterns,Fibonacci, Pivot Points until you got satisfied…. But the ultimate aim is to find a profitable trade. And if the trade yield you 5-10% returns. It is considererd as a success and if fails the above said criteria then it means your stop loss got hit.

Remember this trading system may be a failure… Here to backtest the trading
system only as i used SMA like 30 and 50 based on the available data on the net
and also easy to track..

Disclaimer: Not advise to get into trade based on this info as the aim of this game is to find a profitable strategy

Happy Backtesting Week!!!!

 

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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