Delhi, September 19, 2024: As per a study by AlgoTest, an algorithmic options trading platform, an average 4.5 out of every 10 traders on the platform were profitable during the fiscal year 2023-24, compared to the industry average of about one in 10.

The preliminary data for the current fiscal year shows that 46.19% traders were profitable for Q1 of this fiscal year – April – June.

“This success can be attributed to our traders following a systematic process. It is important to backtest and forward-test your trading idea to have an edge in trading in any market,” said Raghav Malik, Founder, AlgoTest. “AlgoTest is committed to empowering retail traders by providing them with a systematic trading process that includes backtesting, forward testing, and only then trading in the live market. This disciplined approach has proven to significantly improve traders’ success rates.” He added.

AlgoTest has over 10,000 users of the platform of which option sellers constituted around 70 percent while the rest were option buyers. Option sellers are those that receive premium while option buyers pay premium for taking a position. The study also highlighted that most traders on AlgoTest are trading intra-day, which means they go home with zero overnight risk.

By far, the most popular strategy on the platform was the intra-day 920 straddle strategy and its variations. It is a delta neutral strategy that tries to capitalize on initial market volatility, but can change its view and follow the trend if the market makes a strong intra-day trend in either direction. A simple variation involves selling both a call option and a put option of the same strike price simultaneously at 9.20 am.

Overall among the 10,000 traders on AlgoTest, more than half are from Maharashtra, NCR region, Gujarat and Karnataka.

Operating on a credit-based pricing system, AlgoTest offers new users 25 free backtests per week and provides unlimited backtest plans at a fraction of the cost of competitors, making it highly accessible for retail traders.

Outlining his journey, Malik said, “When we started, we were only a backtesting platform. Now, the platform has evolved into a full-fledged systematic trading platform. We have backtesting, forward testing as well as live trading as part of the algo trading offerings.”

Along with algo trading, AlgoTest also provides backtesting and trading of manual strategies using their strategy builder and options simulator. It is compatible with most top brokers and one can complete their entire trade without having to leave the AlgoTest platform.