SAMCO's Nilesh Sharma on How Andekha Sach Is Shaping Success for Traders in the Market
The trading app from SAMCO Securities is one such offering from the brokerage firm.
Mumbai, Maharashtra, India – Business Wire India
Retail investor participation in the Indian financial markets has seen a tremendous uptick in the post-pandemic world. Despite this, a disturbing trend has emerged. While some traders undoubtedly have a high success rate in the markets, most bleed red and lose significant amounts of capital. A recent study by the Securities and Exchange Board of India (SEBI) that substantiated this state of affairs found that 9 out of 10 traders lost money in the F&O segment — with average losses coming in at Rs. 1.1 lakhs.
In light of this concerning trend, analysing trade patterns emerges as a crucial factor in setting successful traders apart from those who incur losses. Understanding and addressing the 'Andekha Sach' or unseen truths behind their trading decisions becomes essential for traders in this challenging environment. It is also vital to identify and rectify blind spots in their trading strategies — a task that many traders struggle to do effectively on their own. This brings us to the pressing need for analytical tools and resources that can assist traders in gaining a more profound and comprehensive understanding of their market actions.
Nilesh Sharma, Executive Director & President of SAMCO Securities Limited, believes there’s one crucial aspect that makes a difference: post-trade analysis.
With over a decade of experience in the securities industry, Sharma has had a rewarding professional journey that has given him incisive insights into the behaviour of traders across various demographics. As the ED of SAMCO Securities, he is now in a unique position that allows him to understand the challenges faced by traders today and develop tailored solutions to optimise their trading performance.
The trading app from SAMCOSecurities is one such offering from the brokerage firm. In its upgraded avatar, the app offers several unique features that empower traders to look beyond mere profits and losses and truly understand their trading performance. Aptly named ‘Andekha Sach’ or hidden truths, these features analyse the past trades of every trader to reveal previously unseen insights about their trading strategies. The trading insights are accompanied by actionable suggestions that allow traders to improve their overall success rate in the market segment of their choice.
SAMCO’s trading app features several specific trade analytics that give traders more clarity on their trading patterns. These metrics quantify the trader’s performance in the markets and add a new depth to their trading story.
4 Key Trade Analytics that Reveal the Andekha Sach
- Strike Rate
The strike rate indicates a trader’s rate of success or failure. It is simply the percentage of profitable or loss-making trades executed in any given period. On SAMCO’s trading app, traders can compare their winning and losing strike rates based on the strategy used, the market sector or market capitalisation.
A high winning strike rate indicates that a trader is adopting winning strategies or is trading in market segments that they are familiar with. A high losing strike rate, on the other hand, calls for a revaluation of the trading plan. Please refer to Image 2.
- Average Profit or Loss Size
Traders may track whether they’ve gained or lost in the markets, but such profits and losses are rarely quantified. SAMCO’s trading app makes it possible to track this metric in post-trade analysis. It shows traders the average size of the profits/losses generated per trade over a given period.
Ideally, traders must aim to maximise their average win/profit size, while keeping the average loss size to a minimum. By comparing the average win/loss sizes across strategies, sectors and market cap segments, retail participants can identify areas that require additional efforts. Please refer to Image 3.
- Average Holding Period
The average holding period in SAMCO’s trading app is a feature born out of the lesser-known truth — that traders must let their winners run, but cut their losses short. The reality is quite contrary, because most traders tend to hold on to losing traders due to impractical optimism, but exit winning trades too early to make any real changes to their overall success.
This metric in the ‘My Trade Story’ attempts to empower traders to take the winning route, so they can maximise their winning days and cut down on the losing days. This feature is also available segment-wise, strategy-wise and market cap-wise. Please refer to Image 4.
- SAMCO Trade Score
The SAMCOTrade Score serves as the culmination point, integrating all aspects of a trader’s journey. It accounts for the strike rate and the average win/loss size, and quantifies the overall success of a trader into a comparable number using a simple formula:
|SAMCO Trade Score: (Winning Trade % x Average Gain %) ÷ (Losing Trade % x Average Loss %)
The brokerage firm also provides clear guidelines to traders on how they can interpret their trade score and what they need to do about it. A preview of how the trade score can be explained based on its value, as mentioned in image 5.
Multi-Level Insights to Uncover the Andekha Sach in Every Trade
The trading app from SAMCO Securities also comes with the industry-first ‘My Trade Story’ feature — which functions as a report card that reveals the true picture of trades. Through this feature, traders can access their Trade Spreadsheet, which provides previous unseen trading insights about past trades at the following levels:
- Trade-Level Insights: Breaking down trades into distinct actions like new initiations, strategic additions and careful exits is vital. It enables traders to grasp the subtleties behind each decision and enhances their understanding of market dynamics.
- Performance-Level Insights: This is about evaluating trades to determine if they are outperforming or underperforming benchmark indices. It gauges trade effectiveness and helps traders refine their trading strategies to outperform market benchmarks.
- Benchmark-Level Insights: Comparing trades to benchmark index returns gives traders a clear perspective of their trading performance relative to market movements. This, in turn, is essential for understanding how effective the trades are in monetary terms.
- Market Trend Insights: These insights categorise trades based on whether they align with or go against current market trends. It helps traders determine whether they are more successful when they follow the market or go against it.
Periodic review of these hidden truths and blind spots is a holy grail formula that many market legends have long utilised to consistently outperform their benchmarks. This method of in-depth post-trade analysis has enabled market greats to discern the most effective strategies and identify key areas for improvement.
Delving into these hidden insights gives traders a window into their unique strengths and vulnerabilities. By harnessing this knowledge, traders can not only capitalise on their areas of expertise but also refine their skills where needed, paving the way for remarkable improvements in overall trading performance — a proven path followed by many of the greatest minds in the market.
Speaking of the often-neglected practice of in-depth post-trade analysis, Nilesh Sharma explained:
“Traders typically follow a four-step cycle: pre-trade research, strategy development, execution, and post-trade analysis. While the first three steps often receive meticulous attention, the crucial fourth step — post-trade analysis — is frequently overlooked. Neglecting to evaluate and review performance leaves traders in the dark about their trading errors and the areas that require improvement.
The reasons for neglecting post-trade analysis vary. Some traders don’t recognize its importance, others may not have the tools to effectively measure these metrics, and some attempt manual analysis, which can lead to inaccuracies. At SAMCO Securities, we’ve made it our mission to help traders from all walks of life overcome these challenges. The Andekha Sach feature in our trading app simplifies and enhances post-trade analysis, so traders can easily refine their strategies for better future performance.”
The unseen trading insights shared on the SAMCO trading app do more than just tackle the challenges outlined above. Traders enjoy diversified benefits from these hidden truths and post-trade analytics.
Benefits for Retail Participants
- Pattern Recognition
Trade Build-Up Analytics in the SAMCO app helps traders identify profitable patterns like the effectiveness of averaging up versus averaging down. This provides insights into actions that could lead to higher profitability.
- Optimal Position Sizing
By examining the outcomes from different trade actions, the app helps traders determine the ideal size for each trade. This, in turn, enhances risk management and maximises the profit potential.
- Precision in Entry and Exit Points
The app's analysis tools enable traders to fine-tune their entry and exit strategies, improving the timing for entering and exiting trades for optimal profit realisation. This minimises the need to time the markets manually.
- Risk-Reward Evaluation
The Trade Build-Up Analytics feature also allows traders to evaluate the risk-reward ratios of different trades. This makes the decision-making process more efficient and optimises risk management strategies to improve the overall risk-adjusted returns.
- Comprehensive Trade Analysis
Beyond just profit and loss, the SAMCO app's post-trade analytics provide a deeper understanding of how effective each trade is, allowing traders to refine their approach based on quantified data that’s easy to interpret.
- Benchmark Comparison
By comparing individual trade performance against benchmark indices, traders gain a clearer understanding of their relative market performance. This helps them remain aligned with or even outperform market trends.
- Enhanced Decision-Making
Comprehensive data analysis reduces the guesswork involved in trading. With customised data and insights available at their fingertips, traders can make more informed decisions and increase the probability of successful outcomes.
Improving Trading Success with the Andekha Sach
The journey to becoming a successful trader is complex yet attainable, especially when armed with the right tools and hidden insights. SAMCO Securities' new-gen trading app, with its innovative 'Andekha Sach' features, does precisely this. The comprehensive suite of analytics and insights it provides are crucial for any trader eager to navigate the Indian financial markets effectively.
Traders can access these features and leverage the benefits outlined above with the demat account and trading account offered by SAMCO. Account holders gain access to the multi-level insights on the trading app at no extra charge. By offering these tools for free, SAMCO Securities demonstrates its commitment to empowering traders and contributing to their journey of success in the markets.
About SAMCO Securities Limited
SAMCO Securities was incorporated by Mr. Jimeet Modi, Founder & CEO of SAMCO Group in 2015. As the country’s leading wealth-tech platform, SAMCO Securities provides retail investors access to sophisticated financial technology and makes their wealth-creation journey simple, informed, and cost-effective. SAMCO Securities mission is to eliminate the existing challenges faced by traders and investors and democratize access to wealth management process for every Indian. With customer centricity at SAMCO’s core, we implement a quantitative approach to provide differentiated solutions that empower our customers in acing the capital markets.
For more details, visit https://www.samco.in/.
Media Contact Details
Yagnesh Kansara, Samco Securities, +91-9892538847
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