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Getting Started

Scanner uses smart algorithms to find trade opportunities for you in the stock markets. It gives you buy and sell trade recommendations on your phone - Android and iOS. Scanner comes prebuilt with 5 trading strategies for Equity and 2 strategies for Futures.

In all tips/advisories, human beings are the ones that are making the trade recommendations. We are the only firm that uses computer powered algorithms to generate trade recommendations. Furthermore, we are fully transparent.

We teach you the exact rules behind each algorithm - theoretically, you can code any Scanner strategy and trade it yourself! We also show you how each strategy has performed in our backtests. We believe in using Science to your advantage.

Trade Academy is the educational arm of Upstox. Upstox (also known as RKSV Securities) is a discount brokerage. The team of Trade Academy, in turn, built Scanner. By having an Upstox account, Scanner users can place a trade directly through Upstox using 1 touch.

First, download the Trade Academy app for free via the Google/ Apple Store. Afterwards, you need to verify yourself (OTP). You will be prompted to begin your free trial. You may also join a Whatsapp group to ask other Scanner users questions!

Strategies Screen

On the strategies screen, you will be presented with 5 strategies to choose from. You can choose from Volcano V2, Gap V2, Bounce V2, Momentum, and Streak. Depending on what you're looking for, you will accordingly pick your strategies.

In Scanner, you will have 3 Intraday strategies to choose from (Volcano V2, Gap V2, and Bounce V2) and two delivery/positional (Momentum and Streak). Pick the strategies of your liking. Do you want to day trade, or do you want to hold on to trades overnight?

Signals Screen

After selecting a strategy, you will be shown the signals screen. The signals screen is where you can activate/deactivate any strategy. In order to save your selection, make sure to go back to the Strategies screen and "refresh" the screen.

When you get a trade, you will be prompted through a notification. Click on the notification. It will take you to the Signals screen, and you will see the trades to take. In order to take a trade, simply enter the quantity and click on "Review".

In order to figure out how much quantity to take on a trade, you can enter your capital. Scanner will take the capital and divide it equally over two trades (this is because you can a maximum of two trades per any strategy). You need to enter your leveraged capital.

The "Scanned at" shows at what time the trade was scanned and sent to you. This is useful because you know how far back the trade was generated. If the trade was not recently generated (we recommend no more than 1 minute), you should not take the trade.

The "Exit Time" is the time at which you should exit, or close out, your trade. If it is an intraday order, your broker will automatically square you off by the end of the day. In order to avoid paying excess fees, we recommend you manually square off.

If you have an Upstox account and you are connected, you can click on Review Order. Enter your 6 digits Unique Client Code UCC) and password, as well as the year you were born in. You will have the ability to see your Order Review on Upstox.

Backtests Screen

A backtest tells you how a strategy performed in the past. For example, if you are viewing a 12 month backtest, you are simply seeing how the strategy would have worked in the past if you had run it during that period of time.

The ROI is the expected rate of return on the strategy based on how well it performed in the past (during the backtest). An expected ROI is not a determinant on how well a strategy may or may not perform in the future.

Trade Academy tries to update its backtests each Sunday. Most backtests are completely automated, but for certain strategies (like GAP V2), we do a triple verification manual check to ensure nothing was overlooked.

Trade Academy tries to update its backtests each Sunday. Most backtests are completely automated, but for certain strategies (like GAP V2), we do a triple verification manual check to ensure nothing was overlooked.

A Drawdown (Max Loss) is an indication for how risky a strategy can be. Generally, you can think of a Drawdown as what percentage of your capital you can potentially lose from one point in time to another point.

A Win Loss Ratio sees what percentage of your trades are expected to be profitable. Therefore, a 55% win:loss ratio indicates that on average, 55% of your trades are expected to be profitable (based on backtests).

I don't have an Upstox account. What do I do? Open an account! We recommend opening an Upstox account since you can directly place your Scanner trades with 1 touch. Otherwise, if you really don't want an Upstox account,

you can use any other broker. You will just need to manually enter the trade.

Generally, you can probably look to earn 2% on your capital on an average month on unleveraged capital (that means if you have 2 lakhs in your account, you can expect to earn maybe Rs. 4,000 or so on an average month).

For Intraday orders, you should exit your trades at 3:15pm. If you are trading through Upstox, your orders will automatically get traded at 3:15pm, but you will pay a Rs. 20 charge per order. We recommend manually exiting right before 3:15pm to avoid fees.

The only way for Scanner users to be able to move markets is if institutions (FII and DII) subscribe to Scanner! This is obviously not the case. The retail participation is too low. That being said, if we feel that this is an issue, we will address it at the right point in time.

All Scanner strategies look at FnO stocks, which means that any stock selected for a Scanner trade has listed Derivatives. This ensures that the stock has enough liquidity, which minimizes slippage and ensures a tight bid-ask spread.

We are able to provide more prompt and direct customer support when you send us an email. Simply send an email to support@tradeacademy.in at any point in time. We will ensure that urgent emails are replied to right away.

Strategy Specific Questions

Starting out, we recommend picking only one strategy. You should select a strategy that is desirable to you: a high enough ROI, a low drawdown, a good win:loss ratio. Also ensure that you are able to take the trade in a timely fashion.

We strongly recommend that you go through the Strategy learn screens and learn a strategy in depth before trading it. Understanding the science behind a Scanner strategy greatly improves your odds at profiting since your emotions will be kept in check.

You should ideally just trade one strategy. Sometimes, you may trade with 2 strategies, assuming you can take all the trades properly (for example, GAP V2 and Momentum can be traded together since the same capital can be used on both strategies).

In the original GAP (V1), we shorted two stocks at the market open (9:15am). However, the feedback was that it was nearly impossible to capture the Open price of the day. Therefore, we modified the strategy to give users enough time (9:24am) in V2.

In Volcano V1, we were only looking for volume eruptions. There was no check on price movement. In V2, we are looking for a 5x increase in volume and a 1% increase in price. In V1, there was no stop loss, but in V2, there is a 2% stop loss.

In Bounce V1, there was no stop loss. This was a problem with Scanner users since generally speaking, Bounce stocks can be highly volatile. We added a 2% stop loss in V2, creating a more robust version of the strategy.

Technically, in order to sell a delivery position, you need to have delivery of the stock, which takes T+2 days. However, when it comes to highly liquid stocks, it is not an issue to sell the next day. Momentum only scans FnO stocks, which means the stock is liquid.

In the Streak strategy, we hold on to a trade for up to two full days. That means that if I enter today, I can hold on to the position for two more days. This means that I will not be receiving a signal tomorrow; hence, we only send signals every two days.

With Volcano V2, we place an order on the premarket session using a market order. Between 9:01-9:07, the premarket session is open. Try to place your trade as early as possible to maximize your chance of capturing the open price.

The premarket session is only open from 9:01 to 9:07. After that, the NSE and BSE match premarket orders against each other, and the exchange is not open, until 9:15. Your order will get rejected if you place it at 9:10am.

was lower than the trigger price. What happened? The rule for Bounce is for the price to fall 5%, at which point we buy. Scanner will send you the trade to buy at the 5% fall price ("Bounce" price) when the price has fallen 4%.

This gives you a chance to place your trade and comfortably pre-empt your order.

Since your order on Volcano V2 is a premarket session order, whereby you place a market order, you cannot specify a stop loss. A stop loss is only recommended to be placed after you get filled (at 9:15am).

Momentum and GAP V2 work very well together. Take your GAP V2 trade at 9:24am. Exit your GAP V2 trades at 3:15pm. At 3:25, use the same capital towards your Momentum trades. Exit your Momentum trades the next day at market open. Repeat the cycle!

Money/Risk Management Questions

If you don't get filled on your trade right away, we recommend cancelling the order as soon as possible. Some Scanner users like to hold on to their trades and simply wait to see if they get filled later on (on limit order), but we don't recommend that.

Slippage is what happens when you're not able to get filled at the best prevailing price. This is a natural phenomenon. Since Scanner users are competing for the same prices at the same times, it is inevitable that sometimes, you will not get filled at the best price.

Starting out, we don't recommend taking any leverage at all. Once you have been trading for at least 2 weeks AND you have been profitable, you can slowly start taking some leverage. We don't recommend anything more than 2-3x leverage, MAX.

Leverage is a two edged sword. Let's assume that you have 1 lakh in your account and you use a 2% stop loss. If your trade value is 1 lakh, the maximum you can lose is 2,000 (2%). With 2x leverage and a trade size of 2 lakh, the maximum you can lose is 4,000 (4%).

Losses are a part of the game. Anybody telling you otherwise is not being practical and realistic! The Max Loss can give you an estimate on how much you can expect to lose (as a percentage of your capital).

Generally, Scanner strategies have a 2% stop loss. For some traders, this seems like a really far stop loss; however, we only push out a stop loss that maximizes returns while keeping risk under control. Try to stick with the stop loss that is recommended.

The general principle we like to focus on is: let your winners run, and cut your losses short. This is why we tend to not have profit objectives (targets) in Scanner strategies. The backtests have also shown that target objectives can lower the ROI of a strategy.

Money management is the art and science of managing your money. To keep things simple, don't use leverage at all. Once you're consistently profitable, look to take on up to 2x leverage. Keep in mind that with 2x leverage, you are willing to lose 2x your stop loss!

If you have any questions that were not answered here, please write to us at support@tradeacademy.in