Nest Pulse Impact Document July 25, 2012 1
Document Information DOCUMENT CONTROL INFORMATION DOCUMENT VERSION REVIEWER REVIEW NOTES Omnesys Nest Plus Nest Pulse Impact Document VERSION NOTES This Nest Pulse Impact Document is for Omnesys Nest Plus KEYWORDS Proprietary Notice This document contains confidential information of Omnesys Technologies Pvt Ltd, which is provided for the sole purpose of permitting the recipient to evaluate the deployment document submitted herewith. In consideration of receipt of this document, the recipient agrees to maintain such information in confidence and to not reproduce or otherwise disclose this information to any person outside the group directly responsible for evaluation of its contents, except that there is no obligation to maintain the confidentiality of any information which was known to the recipient prior to receipt of such information from Omnesys Technologies Pvt Ltd, or becomes publicly known through no fault of recipient, or is received without obligation of confidentiality from a third party owing no obligation of confidentiality to Omnesys Technologies Pvt Ltd. 2
Nest Pulse Nest Pulse is a premium product of Nest Plus, which works as a comprehensive technical analysis tool with advanced charting and indicators. It allows you to create your own strategies based on more than 40 technical indicators using simple codes. 1.The backtesting feature allows you to test the strategy on past data to help assess the performance of the strategy. Backtest Analysis is very useful to test your strategy before you take it live. 2.Go live with your strategy, When your condition is met, you will be asked to Act on Call. A sample strategy for Nest Pulse : 3
MACD: Developed by Gerald Appel in the late seventies, the Moving Average Convergence- Divergence (MACD) indicator is one of the simplest and most effective momentum indicators available. The MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, the MACD offers the best of both worlds: trend following and momentum. The MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, center line crossovers and divergences to generate signals. Because the MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels. RSI: Developed J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. Traditionally, and according to Wilder, RSI is considered overbought when above 70 and oversold when below 30. Signals can also be generated by looking for divergences, failure swings and center line crossovers. RSI can also be used to identify the general trend. MACD indicator is used to identify stocks inertia and to detect momentum. RSI indicator is used to know the price strength. Applying MACD and RSI on BEL - Eq: Go Short when: MACDSignal(13,26,9,Simple) > MACD(13,26,9,Simple) And RSI(Close, 21) < 55 Exit Short when: MACDSignal(5,26,5, Simple) < MACD(5,26,5,Simple) And RSI(Close, 21) > 60 4
Testing MACD and RSI on the historical feeds: => The above strategy was applied on BEL - Eq chart the interval for 5 minutes and tested. => The outcome of the strategy is illustrated in the image given below. 5
The outcome of the strategy is as as follows: 6
Result Analysis: Stock BEL - EQ Largest Profit Rs. 37.65 Largest Loss 0 Net Profit Rs. 93.45 Number of Profitable Trades 4 Number of Losing Trades 0 Total Profit Rs. 93.45 Total Loss 0 Total Number of Trades 8 Conclusion: This strategy can be applied on 'N' number of stocks of your choice. If you feel that your strategy is doing great then you can go live with this strategy. Every time the condition of your strategy is met it will throw the pop up to act on call or ignore. Subscribe to Nest Pulse today for as low as Rs. 75/month (for annual subscription) or take our one-month free trial and get benefit from the Profitable Trades! 7