Your idea: Buy Nifty when it hit 50EMA on monthly chart and sell when it closes 1… — backtested on Indian market data | FakeTrades
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Your idea: Buy Nifty when it hit 50EMA on monthly chart and sell when it closes 1…

💡 Described strategy
Analysed 05 Sep 2026, 10:02 PM IST
★★★★☆ 4.0 / 5

Why 4.0/5? (stars grade the EDGE — per-trade expectancy, consistency, drawdown — not the headline return)

  • Strong per-trade edge: +0.33R expectancy across 3,925 trades
  • Convex payoff 3.6 — winners far bigger than losers
  • Only 30% of trades win — the rare big winners must keep showing up
  • 4 of 9 tested years were negative (2018, 2022, 2025, 2026) — the edge is regime-dependent
  • Max drawdown -27% on the ₹2L portfolio — the compounded return came with deep pain along the way

Detected components (auto-read from transcript)

EMA

Verdict

Auto-backtested. AI-decoded: Monthly timeframe moving average crossover strategy: buy when price touches 50-EMA, sell on close below 10-EMA. Ran on 159 large/mid-caps, real costs. 3,925 trades, win 30%, payoff 3.58, expectancy +0.33R/trade (avg +1.70%/trade).

This is a real edge. The payoff is convex (winners run well past the average loser). Reasonably consistent (56% of years positive).

Mechanically decoded from the transcript and scored from the metrics. Flagged for human review; a hand-vetted verdict can override it.

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Is it profitable? (green above the line = made money, red below = lost it)

₹2,00,000 portfolio (max 5 positions, across the stock universe — real delivery costs)

Return+58.7%
CAGR+6.0%
Max drawdown-27.1%
Trades357 · 100 won
₹200,000 → ₹317,482  ·  2018-07-09 → 2026-06-08
201820192020202120222023202420252026
+8%+8%+15%+15%-15%+12%+10%-0%-1%

Simulated on the 159 large/mid-cap universe. Capital-constrained, daily mark-to-market.

Year by year (every trade the rules fired, across the tested stocks)

YearTradesWin %ExpectancyAvg return / trade
201828420% -0.36R -2.48%
201951727% +0.07R +0.33%
202044745% +1.15R +9.08%
202140134% +0.29R +1.56%
202256825% -0.03R -0.50%
202347446% +1.59R +6.62%
202442323% +0.21R +0.84%
202554728% -0.02R -0.46%
202626419% -0.34R -1.66%

Where this strategy made & lost money (the full stock-by-stock breakdown — 158 stocks, incl. 2026)

#StockTradesWin%Avg/tradeBestTotal2026
1 ████████ 2730% +1.9% +47% +52% +42%
2 ████████ 2050% +11.3% +54% +226% +37%
3 ████████ 2719% +0.2% +39% +6% +37%
4 ████████ 2152% +14.6% +59% +308% +36%
5 ████████ 2035% +5.8% +44% +115% +34%
6 ████████ 2733% +13.4% +162% +362% +33%
7 ████████ 2245% +7.8% +54% +173% +32%
8 CGPOWER free peek 2232% +13.1% +241% +287% +24%
9 ████████ 2433% +5.9% +89% +141% +23%
10 ████████ 1436% +5.7% +38% +80% +18%
11 ████████ 2148% +7.9% +67% +166% +16%
12 ████████ 2245% +3.4% +36% +74% +16%
13 ████████ 2148% +8.6% +66% +180% +13%
14 ████████ 2627% +4.1% +67% +107% +13%
15 ████████ 2627% +1.2% +56% +31% +11%
16 ████████ 2438% +4.1% +43% +100% +10%
17 ████████ 2429% +1.0% +48% +23% +10%
18 ████████ 2425% +0.2% +33% +4% +9%
19 ████████ 1729% -0.4% +19% -7% +9%
20 ████████ 2938% +0.1% +15% +3% +8%
21 ████████ 3324% -1.1% +30% -35% -23%
22 ████████ 2722% +1.0% +50% +28% -22%
23 ████████ 2730% +1.3% +27% +34% -17%
24 ████████ 3324% +1.1% +30% +35% -17%
25 ████████ 3030% +3.0% +67% +90% -17%
26 ████████ 633% +4.5% +44% +27% -16%
27 ████████ 3318% -1.6% +16% -52% -15%
28 ████████ 3030% -1.6% +13% -47% -15%
29 ████████ 2829% -1.0% +37% -27% -14%
30 ████████ 2627% -0.6% +33% -16% -14%
You can see the numbers — see the names. Unlock every stock in this breakdown and download it as Excel. The worst stock in this table returned -52% under these exact rules — one wrong pick costs many times the unlock.

Educational backtest output only — not investment advice or a recommendation to buy/sell any security. AI-generated from stored historical data; not 100% accurate. Past performance is not indicative of future results.

On the index (same rules applied to NIFTY & BANKNIFTY)

IndexTradesWin%Expectancy (R/trade)Avg return/trade
NIFTY3040% +0.48R +0.47%
BANKNIFTY3148% +0.67R +2.18%
Full transcript (18 words)
Buy Nifty when it hit 50EMA on monthly chart and sell when it closes 10EMA on monthly chart

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