Monday, 16 January 2017

Stock Trading strategy with Buy Sell signals: Excel Sheet

Let’s explore another Stock Trading strategy with Buy Sell signals created on an Excel sheet. This is a semi-automated Excel sheet where you have to manually enter historical EOD data for the selected stock. Once this data is entered the Excel sheet would automatically indicate the Buy/Sell signal. The strategy is based on support and resistance and assumes that 3 consecutive equal lows may cause an upper breakout, and 3 consecutive equal highs may cause a lower breakout. It works well on all the low priced stocks (less than 200 rupees).
Find similar profitable Excel bases strategies here.

                                  

Strategy Overview

ParamterValue
Preferred TimeframeEOD
Indicators UsedNone
Buy Condition3 consecutive equal lows in Daily Timeframe.
Sell Condition3 consecutive equal Highs in Daily Timeframe.
Stop LossAs per your risk appetite
TargetsNo fixed target. Depends on your money management strategy.

Excel Sheet

ParameterDescription
Worksheet Name<Stock Name>
InputsColumn A,B,C,D,E,F,G
Date, Open,High,Low,Close,Volume of the selected stock. It needs to be manually entered. This can be downloaded from Google finance using this example link. (This link is for downloading data for Idea Cellular)
OutputsRounded High/Low (Column G,H)Rounded high/low values of stock for that particular date.
Position (Column I)Indicates whether you should take Buy or Sell position
Buy/Sell Price (Column J,K)Indictaes the price at which Buy/Sell position is taken. It is the Close price of the day when Buy/Sell signal is generated.
Buy/Sell (Column L,M)Proft in % terms since the last Buy/Sell position is taken.

Screenshot

See the below example for Hindalco. The strategy correctly indicated Buy signal on Feb 26. A position taken on Feb 26 would be in 30% profit on March 23.

Stock Trading strategy with Buy Sell signals

How to use this Excel Sheet

Step 1: Download the sheet from the end of this post to your local computer.
Step 2: Open the sheet and manually insert the EOD data for the selected stocks. The sample Excel contains data for Idea,Tata Power and Hindalco.
Step 3: The sheet will automatically indicate Buy/Sell signals and compute your profit/loss%

Download Link

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