RSI Crossover Strategy with Compounding (Monthly) by Anmol-Mittal
By Anmol-Mittal
Performance Metrics
- Author: Anmol-Mittal
- Symbol: BSE:VOLTAS
- Timeframe: 1 month
- Net P&L: +51,898,240.30 INR (+8,007.65%)
- Win Rate: 47.1%
- Profit Factor: 2.044
- Max Drawdown: 8,544,957.00 INR (65.78%)
- Total Trades: 17
- Sharpe Ratio: 0.122
Description
Explanation of the Code:Initial Setup:The strategy initializes with a capital of 100,000.Variables track the capital and the amount invested in the current trade.RSI Calculation:The RSI and its SMA are calculated on the monthly timeframe using request.security().Entry and Exit Conditions:Entry: A long position is initiated when the RSI is above its SMA and there’s no existing position. The quantity is based on available capital.Exit: The position is closed when the RSI falls below its SMA. The capital is updated based on the net profit from the trade.Capital Management:After closing a trade, the capital is updated with the net profit plus the initial investment.Plotting:The RSI and its SMA are plotted for visualization on the chart.A label displays the current capital.Notes:Test the strategy on different instruments and historical data to see how it performs.Adjust parameters as needed for your specific trading preferences.This script is a basic framework, and you might want to enhance it with risk management, stop-loss, or take-profit features as per your trading strategy.Feel free to modify it further based on your needs!