The 1% Trader

This blog is about my past performance in trading since 2017 to till date, i.e. 19th Feb 2023.

I will start with listing down all the accounts I have.

Next I will download the account statement and compute the returns in individual account. To sum up the returns of all the accounts I will combine the statements and calculate the final returns.

To calculate returns, I will filter payin's & payout's and use XIRR function which is used by mutual funds and other financial agencies. 

Finally I will explain the reason to do all this exercise.

Accounts

Let me start with the number of accounts I have. 
I have a total of three account, all three in Zerodha. 

First one is on my name, DP3594

Second is in the name of my mother, AK9917 and 

Third is my wife's account, KT5900

Returns

Below are the screen recordings, wherein I have downloaded the account statement from individual accounts and applied XIRR function to calculate the annual returns.

VIDEO 01 - Returns in Account DP3594

VIDEO 02 - Returns in Account AK9917

VIDEO 03 - Returns in Account KT5900 and combined returns

Here are the synopsis

Account wise returns

Year wise returns

Reason

Lastly coming to the reason to do this entire exercise. 

Few days back, inspired by SEBI's report on profitability of FNO traders, I had tweeted my PNL for the financial year 2021-22.

In the year FY22, I had made a gross profit of 8.75 Lakhs which was 4 times higher than the average profit of profitable traders and Transaction charges was 2% of my profits, which was much less than the average 15% transaction charges paid by the profitable traders.

Now going a step further, again inspired by the statement given by Nitin Kamat, CEO, Zerodha, where he had mentioned that only 1% traders beat FD returns over a period of 3 years, I tried to figure out the returns that I have made over the past few years.

I have captured the entire exercise in the above videos and placed it in this blog.

Conclusion

• The net annual return of 21.89% over a period of 6 years
• The returns that I have calculated is the "net returns" including all the expenses.
• Going by the statement given by Nitin Kamat, the above figures put me in the list of 1% traders who beat the returns from the bank FD's

Finally it is very joyous moment for me to be in the "1% traders list"