Benchmark
Are you beating Nifty or taking more risk for less reward?
A profitable month does not automatically mean you are outperforming. You have to compare return with drawdown, consistency and stress.
Many traders judge success with one question: "Did I make money?" That is useful, but incomplete. If your account grew while taking deep drawdowns and inconsistent risk, the result may not be better than a simple benchmark.
Benchmarking forces honesty. It asks whether active trading is worth the extra effort, time, fees, stress and risk. A trader who makes slightly more than Nifty but suffers large drawdowns may still have a weak process.
What a fair comparison includes
- Total return over the same period.
- Maximum drawdown and time to recover.
- Consistency of green and red periods.
- Risk taken to produce the return.
PNLyze workflow: Use Benchmark Comparison with drawdown and monthly reports. Do not compare only profit. Compare the quality of profit.
Active trading is not bad. But it should justify itself. When your numbers survive comparison, confidence becomes more than a feeling.
Benchmark your own trades
PNLyze compares your uploaded performance against market alternatives so you can judge edge with context.