Intraday short strangle
Retrun % 1 year : 10%
Return generated : 2 Lacs assuming 10% on maximum capital allocation 20 Lacs
Damper credit: 134%
Return generated : 4.29 lacs 134% on 3.2 Lacs
Total return generated = 4.29+2=6.29 on capital of 23.2 Lacs which works out to be 27%.
But combined algo shows 72% return. What I’m missing
Hi! Thanks for pointing this out—this is a very valid observation.
The difference arises because the Combined Algo performance currently assumes equal capital allocation across all constituent algos for backtesting and performance calculation. In your example, you’ve allocated capital based on the maximum margin requirement of each strategy (₹20L + ₹3.2L), which naturally leads to a different overall return calculation.
Your feedback is absolutely valid, and we agree that this assumption should be made more explicit. We’ll incorporate this as an improvement in the upcoming update by clearly mentioning the capital allocation methodology used in the Combined Algo feature so that the displayed returns are easier to interpret.
Thanks again for highlighting this—it helps us make the platform more transparent and user-friendly.
While you are on this , please check feasibility of letting user tweak capital allocation to individual algos for better planning and also check if max dd and average dd are update on live execution as now almost all algos have 1 year data , I assume it comes from backtest of 2 years so either you may be wating 2 years of live execution to let them get updated on live , as many user pointed out max dd for some algos or combined algos crossing max historical but I understand it may be bcoz of different capital allocation , please have a look on this and see what’s feasible to implement
Why dont you just compute on the actual deployed capital.
That’s a fair suggestion.
The challenge is that there isn’t a single “actual deployed capital” that applies to everyone. Different users allocate different amounts of capital to each algo, so a common return figure on deployed capital can’t be calculated dynamically for all users on the Explore page.
If you’re looking at your own deployed capital and P&L, the Portfolio section already reflects your actual allocations and is the right place to evaluate your personal returns.
That said, we agree that the current representation of Combined Algo performance can be more intuitive. We’ll take this as product feedback and explore a better way to represent combined strategy returns. Since this involves changes to the underlying product logic rather than just the UI, it will take some time, but it’s definitely something we’ll evaluate.
Thanks for raising the point—it helps us improve the product.