AlgoTest vs Smallcase: Backtested Algos or Curated Portfolios?

If you're a retail investor in India, you've definitely heard of Smallcase, a platform that popularized the idea of investing in curated baskets of stocks. Clean UI, simple explanations, and direct broker execution make it beginner-friendly.

But is it meant for traders?
And how does it compare to a platform like RA Algos by AlgoTest, which is built specifically for transparent, testable, and executable algo strategies by SEBI-registered Research Analysts?

Let’s break it down.

TL;DR

What is Smallcase?

Smallcase is an investment platform that offers thematic portfolios of stocks and ETFs. Think of them as professionally researched baskets built around ideas like “EV Revolution”, “Dividend Aristocrats”, or “Low Volatility.”

Users can invest in these baskets through their broker accounts (Zerodha, Upstox, HDFC, etc.) and track them easily. But behind the simplicity lies a key limitation: no backtesting, no transparency on risk metrics, and no derivatives.

You know what you're buying, but not why or how it's performing under stress.

What is RA Algos by AlgoTest?

RA Algos is a no-nonsense marketplace of SEBI-registered, rule-based strategies that are backtested, forward-tested, and ready for automation.

You get to:

• View complete strategies' risk metrics

• See risk-adjusted performance

• Add your broker and trade live

• Monitor metrics like drawdowns, win rates, and volatility

And yes, all strategies are by SEBI-registered RAs.

1. Transparency & Logic

🟠 Smallcase

• Shows basket name, theme, and stock weights

• No access to historical performance or stress testing

✅ RA Algos by AlgoTest​

• Strategies by RAs, can make custom portfolios.
• Full performance metrics: CAGR, Max DD, Sharpe, win-rate

2. Backtesting & Forward Testing

Smallcase

• No user-visible backtest performance

• No way to simulate real market conditions before investing

• You rely on themes, not data

✅ RA Algos by AlgoTest

• Backtests with brokerage, slippage, and taxes

• Forward test on real-time data using paper trades

• You can stress test strategies before going live

Would you invest without checking past data? Smallcase wants you to. RA Algos doesn’t let you.

3. Execution & Automation

Smallcase

• Broker integration with multiple DPs

• One-click investment in a basket

• Manual rebalancing required based on notifications

RA Algos by AlgoTest

• Broker integration for live algo trading

• No manual intervention required once deployed

• Trade in Options, Futures, and Stocks

4. Product Type: Long-Only Portfolios vs Active Algos

Smallcase

• Long-only equity exposure

• No support for options, futures, hedging, or volatility plays

• Ideal for long-term investors

RA Algos by AlgoTest

• Covers different strategies 

• Stocks, Index F&O, and multi-leg algos

• Suitable for intraday, positional, and monthly rebalances

5. Compliance & Regulation

Smallcase

• Some baskets are powered by RAs, but not all

RA Algos by AlgoTest

• All algos are listed by verified SEBI-registered Research Analysts

6. Who Should Use What?

Conclusion

Smallcase is a great starting point for long-term investors looking for exposure to themes and stock baskets. But it hides the engine under the hood, you can’t test strategies, understand rules, or automate anything.

RA Algos by AlgoTest, on the other hand, is built for traders who demand risk metrics, data, and automation. Whether you’re trading options or building diversified strategy portfolios, it puts you in full control, with full transparency.

Looking for more than just a pretty basket of stocks?
Want backtests, execution, and real accountability?

RA Algos by AlgoTest is built for you.

To check other similar platforms, head over to this article.​