In India's fast-growing retail trading ecosystem, a painful reality persists: most retail traders still lose money. Despite access to technology, platforms, and education, many retail investors fall for the same trap, unregulated Telegram tips and influencer hype promising 5% weekly or 10% monthly returns.

The truth? It doesn't work. And often, it ends in financial losses, frustration, and mistrust.

The Problem With Telegram Tips and Influencer Trades

"Join our VIP group. 90% win rate. Booked ₹50K today."

Sound familiar? These are the messages retail traders see every day. But here's what's actually happening behind the scenes:

  • Cherry-picked results: You only see the wins, never the full picture.

  • Backdated calls: Tips are posted after the price has moved, making it impossible to verify.

  • Slippage ignored: The tip says "buy at 100" but when you try to enter, it’s already 102. By exit, you’re getting 106 when the tipster shows 110.

  • No skin in the game: Tip providers don’t risk their own capital.

  • Emotional, not systematic: There’s no research, no logic, just hype.

Worse yet, many of these tips are structured in ways that look profitable, high win rate, small consistent gains but carry catastrophic risk when the strategy blows up. One loss wipes out months of gains.

​If 90% of your trades make ₹10, but 10% lose ₹500: you're not making money. You're just delaying the pain.​

The bigger danger is in believing the illusion of consistency. Most tip-based strategies are built on negative skew: the kind that gives you tiny wins most of the time, but ends with an oversized, portfolio-bleeding loss. It’s the same kind of curve that looks beautiful... until it collapses.

Example of Negative Skew

Why RA Algos Are a Smarter, Safer Choice

Platforms like AlgoTest allow you to follow algos created by SEBI-registered Research Analysts (RAs). These are not anonymous tipsters, these are verified professionals who are held accountable by the regulator. Here's how RA Algos are fundamentally different:

1. Regulated and Accountable

SEBI RAs must follow strict compliance guidelines:

  • No misleading claims

  • Full disclosure of conflicts of interest

  • Transparent performance reporting

Tipsters on Telegram? Zero accountability, no track record, no protection.

2. Backtest Before You Risk

Every Algo on AlgoTest comes with:

  • Historical backtest results

  • Assumptions for slippage, brokerage, and costs

  • Risk metrics like drawdown, trade logs, margin required

This means you can evaluate a strategy before risking your money.

3. Forward Testing Is Easy and Built-In

Retail traders should always forward test (paper trade) a strategy before going live. AlgoTest lets you do that:

  • No real capital required

  • Track real-time performance

  • See if the strategy holds up in live conditions

This is how institutions operate, backtest, forward test, then deploy.

4. Fully Automated Execution

Once you're confident in a strategy:

  • Connect your broker account

  • Let the Algo execute trades as per the logic

  • No manual order placement, no FOMO mistakes

You trade with precision, not emotion.

5. Real Returns, Not Dreams

RA Algos focus on risk-adjusted returns, not fantasies:

  • No 5% weekly profit promises

  • No screenshots with emojis

  • Just performance data you can verify

"Even the best hedge funds aim for 15–20% annual returns. Anyone promising 5% a week is selling dreams."

6. Transparency at Every Step

With AlgoTest, you get:

  • Trade-by-trade logs

  • Live and historical performance

  • Drawdown charts

  • Cost-adjusted returns

Nothing is hidden. No cherry-picking. No surprises.

7. Slippage and Costs Built In

A key reason tip-followers lose money is slippage. The tip says "Buy at 100" but you get filled at 103. Over time, that kills returns.

RA Algos:

  • Include slippage in backtests

  • Show realistic brokerage and taxes

  • Let you adjust assumptions

You see real-world performance, not theory.

8. No Coding, No Tech Barrier

Even beginners can use AlgoTest:

  • Browse strategies

  • Filter by capital, drawdown, style

  • Backtest, forward test, deploy

No spreadsheets, no programming, no guesswork.

Using means:AlgoTest​

  • You're working with SEBI-registered professionals

  • You're using regulated infrastructure

  • You're protected in case of disputes

Telegram tips? You’re legally on your own.

Ask for Proof Before You Trade

A SEBI RA strategy gives you something that no tip ever will: a paper trail. You know when it was created, how it has performed historically, and how it behaves in live markets. Most importantly, you can verify everything.

Contrast this with influencer-driven tips that often can’t even prove if the trade idea was real, or simply backfilled after the move. Many tipsters post entries after the price has already moved giving the illusion of accuracy without substance.

Build Confidence Before Risking Capital

With AlgoTest, even total beginners can act like institutions:

  • Review backtest → Add realistic slippage → Forward test with paper money. When an algo pass all three, consider live capital. This systematic, low-risk approach ensures that you’re not gambling, you're trading with a plan.

Final Thought: Test Before You Trade

Don’t chase promises. Don’t fall for 90% win-rate claims. Don’t believe a tip without proof.

Instead:

  • Ask for a backtest report

  • Add realistic slippage and costs

  • Run a forward test

  • Only then risk real money

That’s what professionals do. That’s what institutions do. And that’s what smart retail traders are now doing with RA Algos on AlgoTest.​

Always test before you trade. That’s the only way to trade smartly. To learn more about RA Algos, head over to this blog.​