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Buy a bullish engulfing candle that touches the 50-day average; hold for 10 sessions.
Bullish Engulfing at the 50-DMA on Sensex from Dec 2005 to Nov 2026: CAGR −0.8%, max drawdown 17.2%, win rate 33.3% over 15 trades, vs buy-and-hold 10.9%.
As of · Hypothetical backtest by Jivani Markets on Sensex daily data; re-run weekly
| Measure | Bullish Engulfing at the 50-DMA | Buy and hold Sensex |
|---|---|---|
| CAGR (annual return) | −0.8% | 10.9% |
| Total return | −15% | 764% |
| Max drawdown | −17.2% | −60.9% |
| ₹10 lakh became | ₹8.5 lakh | ₹86.4 lakh |
| Win rate | 33.3% | — |
| Trades (closed) | 15 | — |
| Winning / losing trades | 5 / 10 | — |
| Profit factor | 0.29 | — |
| Sharpe ratio | -0.24 | — |
| Volatility (annual) | 3.1% | — |
| Time in the market | 3% | 100% |
| Average holding | 10 sessions | — |
| Charges and slippage paid | ₹74,882 | — |
# Bullish Engulfing at the 50-DMA on Sensex
universe("SENSEX", asset="index")
settings(
timeframe="1d",
entry_timing="next_open",
cost_model="retail",
slippage_model="tiered",
start="2006-01-01",
benchmark="SENSEX",
allow_short=False,
participation_ignore_zero_volume=True,
)
time_exit(bars=10)
buy(all_of(bullish_engulfing(), touches(sma(50))), size=percent_of_equity(100))
| Year | Strategy | Buy and hold |
|---|---|---|
| 2026* | −3.5% | −4.8% |
| 2025 | −1.2% | +9.1% |
| 2024 | −5.2% | +8.2% |
| 2023 | −1.0% | +18.7% |
| 2022 | 0.0% | +4.4% |
| 2021 | 0.0% | +22.0% |
| 2020 | 0.0% | +15.8% |
| 2019 | 0.0% | +14.4% |
| 2018 | 0.0% | +5.9% |
| 2017 | 0.0% | +27.9% |
| 2016 | 0.0% | +1.9% |
| 2015 | 0.0% | −5.0% |
| 2014 | −1.9% | +29.9% |
| 2013 | +0.7% | +9.0% |
| 2012 | +0.1% | +25.7% |
| 2011 | −4.1% | −24.6% |
| 2010 | +1.9% | +17.4% |
| 2009 | +6.5% | +81.0% |
| 2008 | −4.8% | −52.5% |
| 2007 | +3.6% | +47.1% |
| 2006 | −6.4% | +46.8% |
| Bought | At | Sold | At | Return |
|---|---|---|---|---|
| 26 Aug 2026 | 78,008.94 | 9 Sept 2026 | 75,103.39 | −4.0% |
| 12 Sept 2025 | 81,881.59 | 26 Sept 2025 | 80,834.57 | −1.5% |
| 16 Dec 2024 | 82,123.31 | 31 Dec 2024 | 77,865.6 | −5.4% |
| 28 Sept 2023 | 66,505.62 | 13 Oct 2023 | 65,935.16 | −1.1% |
| 22 Aug 2023 | 65,370.33 | 5 Sept 2023 | 65,573.09 | +0.1% |
| 6 Apr 2023 | 59,716.45 | 24 Apr 2023 | 59,783.9 | −0.1% |
| 19 Dec 2013 | 20,991.24 | 3 Jan 2014 | 20,788.35 | −1.2% |
| 13 Jun 2012 | 16,891.02 | 27 Jun 2012 | 16,950.3 | +0.1% |
| 27 Dec 2010 | 20,092.69 | 10 Jan 2011 | 19,684.85 | −2.3% |
| 23 Nov 2009 | 17,092.74 | 7 Dec 2009 | 17,081.08 | −0.3% |
From 30 Dec 2005 to 9 Nov 2026, these Bullish Engulfing at the 50-DMA rules on the Sensex index returned a CAGR of −0.8% after costs, less than the 10.9% a year from buying and holding the index, with a worst fall of 17.2% against 60.9% for buy-and-hold. It made 15 trades and was invested 3% of the time. This is a hypothetical test on past data, not a recommendation, and past performance is not indicative of future results.
33.3%: 5 of 15 closed trades made money after charges and slippage. On a ₹10 lakh account the average winning trade made ₹12,378 and the average losing trade lost ₹21,268; the profit factor (gross profit ÷ gross loss) was 0.29. A high win rate with small wins can still lose money, so read it with the CAGR and drawdown.
Buy: A bullish engulfing candle whose range touches the 50-day SMA. Sell: After 10 sessions. One position at a time with all of the capital; out of the market (in cash, earning nothing) between trades. Daily candles, long only, orders filled at the next session's open.
Buying and holding the Sensex index over the same dates returned 10.9% a year with a worst fall of 60.9%; the strategy returned −0.8% a year with a worst fall of 17.2%. A strategy that is out of the market part of the time usually gives up some return in rising years in exchange for missing part of the falls; the year-by-year table on this page shows where each one gained or lost.
Retail delivery charges (STT, exchange and SEBI fees, stamp duty and GST) and size-based slippage on every buy and sell; signals are read on the daily close and filled at the next session's open; price return only, so dividends are left out of both the strategy and buy-and-hold. An index cannot be bought directly; a fund or ETF that tracks it adds its own expense ratio and tracking error, and pays dividends this price-index test leaves out.
Yes. The "Run it yourself" link opens these exact rules in the Jivani Markets backtest builder, where you can change the indicator settings, add a stop-loss, pick other stocks or indices and re-run it on the latest data.