Planning to use algo trading? Key checks retail investors must make

Last Update Date: 05-10-2026

Published by Business Standard

Abhishek Kumar's role: Quoted

Abhishek Kumar said a strategy's data should be tested across bull, bear and sideways markets, and advised traders to verify exchange registration and, for black-box algos, the provider's Sebi research analyst licence.

With brokers preparing to offer algorithmic trading strategies to retail clients under Sebi's revised framework, Business Standard lists the checks to make first. These include the strategy's logic, back-test and live data, drawdowns, success rates, costs, capital at risk, the provider's registration and the tax treatment of trading income.

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Planning to use algo trading? Key checks retail investors must make

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