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.
|Buy Condition||3 consecutive equal lows in Daily Timeframe.|
|Sell Condition||3 consecutive equal Highs in Daily Timeframe.|
|Stop Loss||As per your risk appetite|
|Targets||No fixed target. Depends on your money management strategy.|
|Worksheet Name||<Stock Name>|
|Inputs||Column 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)
|Outputs||Rounded 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.|
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.
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%