Innovative Signal for “Swing Trading Strategy” that gives Good Profit.

Swing Trading Strategy

So today one of the stocks in my Portfolio fell by 17% when the market opened for trading in morning but by the end of the day the loss reduced to 11%.

I have a habit of choosing stocks after lot of research and due-diligence. And I knew that stock was really good and company is fundamentally sound and strong. It was just a news that made the investor panic. So, during morning hours I thought of accumulating more stocks rather than exiting form it. And by the end of the day the stocks I bought today were in 4% positive.

This lead me to think that this happened (initial large fall followed by some drastic recovery) because the News spread the Panic but people know that it is fundamentally strong and so others started accumulating it. So, this can be back tested to find out fundamentally strong stocks.

Then, after the market hours I decided to back test —

Which stock in Nifty 100 fell by more than 10% in a day in the last 2 years and then recovered by more than 1/3rd of maximum drawdown on that day itself.

Also, how many days does it took them to recover fully from this drawdown/sharp fall. And How much return did it gave in next 10 days and Next 30 days from the Black Swan Event.