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RAIN Launches New Flagship Product, TradingRooms, Aims To Make Active Investing A Community Business

By on December 17, 2021 0


Many stock traders, having landed on the trading floor after years of trying to figure it out, have exclaimed that, all in all, trading is an incredibly lonely profession. Watching winding lines move up and down on a screen from 9:15 a.m. to 3:30 p.m. is difficult, but sometimes the lack of colleagues or people who can relate to the fight is more difficult, especially since the pandemic has forced people to to operate in silos.

Upstox founder Raghu kumar and Harsh Agarwal, Hedge Fund Manager and Founder of AGacquisitions want to change that. They believe that trade should be a more social activity than it is now, given that before the advent of laptops, smartphones and high-speed internet, traders had to work together on the trading floor, and the trade had a inherent social and collaborative angle to that.

To this extent, the startup of the duo, RAIN Platforms Inc, earlier this year unveiled a automated quant-trading product for retail investors where they could choose from a multitude of strategies published by brokers and individual traders.

The next step was to add a social element to her and to open up the platform to offer trading strategies beyond simple algos – and this has led to Market Halls.

TradingRooms is essentially a platform that allows brokers, traders and trading enthusiasts to create “rooms” that users can subscribe to, set up a trading strategy, and engage in trade and discussion discussions. other miscellaneous subjects.

Users can Browse through the rooms, see the total returns that a room has generated from their commercial performances, subscribe if they like the direction they are heading, and connect their online trading accounts to begin executing the transactions described by the room owner.

The platform will officially go live on December 18, 2021, following an online unveiling event, which will also see two panels discussing active trading that investors can connect to.

How it works

TradingRooms is built like any other social media platform where users can follow each other and see what the people they follow are posting on their homepages.

To discover the trading rooms, investors can use a multitude of specific filters such as holding period (i.e. intraday trades, long term trades, six month trades, etc.), asset class (e.g. equities, derivatives, cryptos, commodities, etc.) and strategies, among others.

Once they discover a piece they like, they can become a member by subscribing to it and paying a monthly, quarterly or annual subscription – set by the owner of the room.

Being a member of the room gives users access to the the exchanges that the owner of the room has set up for the members, which they can then go to run on their personal brokerage accounts. When room owners review, add or subtract open positions, trades are automatically executed on all members’ accounts, but investors can choose to exercise control over each buy and sell decision if they do so. wish.

“TradingRooms is where democratization meets automation – we don’t force a single user, whether they own a room or not – to do something they don’t want to do. Every option, from setting a subscription rate for rooms to investors executing a transaction, is highly customizable and controllable by end users, ”said Raghu. Your story.

The social aspect of the platform lies in its interactivity. Members of a group can interact with each other via live chat, share videos, news and posts on the room page, and discuss trading strategies. Room owners can push members to rebalance their portfolios if they notice any misalignment, as well as responding to questions posed by members, if any.

The owners of the hall do not actually exchange the instruments they recommend to the hall, but perform the simulation of these transactions – which is useful for users when looking for rooms, especially since these mock transactions help describe the type of returns the strategy helps generate.

Think of it as a series of hotel rooms. Each room the user enters offers a different conversation and an array of food items to choose from. Users can choose what they want to consume and taste a myriad of such pieces. But in case they don’t want the burden of making those decisions, they can choose a ready-made tray, which consists of whatever the curator or room owner has put together.

“It’s like a community, and each room has its own party,” jokes Raghu.

How does it help

TradingRooms not only allows brokers, traders, strategists and market operators to have aautomate exchanges and monetize conventionally used media like WhatsApp and Telegram where they often share strategies, but also do such services more accessible to end users.

Retail investors benefit from a service similar to that of a portfolio manager cheaper prices, as well as becoming more active participants in the markets.

Harsh says that RAIN’s decision to pivot at TradingRooms was also related to the fact that RAIN Trader, the previously released proof of concept platform, was essentially not for discretionary traders who may want to use the platform to automate trading, but not open their services to the public.

TradingRooms allows room owners to publicize the room wherever they are easily spotted, or limit the platform to one closed set of users by invitation only. This could be useful for brokerage houses and traders who have their own set of clients.

Business model and future plans

Start-up takes a reduction in subscription fees that room owners charge their members, which is its main source of income. The company hopes to soon use some of the platform’s real estate to manage ads – which Harsh says will be pocketed by the owner of the trading room, as well as by TradingRooms.

Users do not have to pay anything to access the platform – they only pay subscribe to the bedrooms. The platform integrates with online brokerage platforms such as Upstox, Zerodha, FYERS, and others. By the end of next month, the startup will add 30 more online brokerage firms to the platform.

Raghu says TradingRooms will be offering soon video streaming services to help increase interaction on the platform and make it more social, as well as a news feed that will include curated content relevant to markets and trading.

The social media platform currently allows people to trade stocks, derivatives and ETFs, and hopes to add commodities, currencies and crypto by next month.

The startup is about to close its Serie A in the coming months. Its launch on December 18 is a highly anticipated event that will welcome the best players in the space.

Raghu, who is based in Texas, says he hopes to launch the social investment platform in the United States by next year, and will soon add a second product to RAIN’s Indian portfolio.

Edited by Saheli Sen Gupta