—
Backtest the circuit-hit rate check the accuracy claim before trusting it
For a stock you already hold — pick one, backtest all three side by side, then set the one you trust as a paper rule. Each answers the same question a different way: "if I'd held since the start of this window, when would this rule have told me to sell?"
Every result shows four numbers: Return (what you'd have made by the exit point), Peak reached (the best unrealized gain during the hold), Given back (how much of that peak you lost by the time you exited), and Days held. There's a real trade-off between them — an earlier, tighter exit gives back less but also usually returns less; a looser one rides more of the trend but hands back more if it reverses hard.
How this works plain-language + example
The simplest idea: if the stock drops more than a set % from yesterday's closing price, sell. Since a runaway stock keeps closing at new highs, "yesterday's close" keeps climbing too — so the trigger price silently rises right along with it, without any indicator math.
Example: stock closes Monday at ₹1,740. With a 10% trigger, if Tuesday's low touches ₹1,566 or below, the rule sells.
How this works plain-language + example
Instead of a fixed %, this looks at how much the stock normally moves per day (its "Average True Range") and sets the sell trigger that many multiples below the highest price seen in the last N days. Calm days keep the trigger close; wild days give it more room — so normal noise doesn't shake you out.
Example: highest close in 22 days is ₹1,900, the stock typically swings ₹80/day, multiplier 3× → trigger = ₹1,900 − (3×₹80) = ₹1,660. Sell if price falls below that.
How this works plain-language + example
Tracks a rolling average of the last N closing prices as a "trend line" under the stock. As long as price closes above its own average, the trend is considered intact. The day it closes below that average, the trend is read as broken, and the rule sells.
Example: 20-day average is ₹1,500. Stock closes at ₹1,480 (below it) → the rule sells at the next check.