South African startup Market Reflex builds behavioural tool for self-directed traders

Trading apps can show what happened in a market. Market Reflex is more interested in what happened before a trader placed the trade. The South African startup was founded by Mlungisi Mdletshe. It has launched an app that lets self-directed traders keep a journal of their trades and decisions. Users can record their thinking before a trade. They can then review it afterwards and add notes about their strategies.

The app also uses AI to provide feedback on trading behaviour. Market Reflex does not place trades. It is not a broker and does not provide buy or sell signals. For Mdletshe, a trader can understand the mechanics of trading and still struggle to follow their own rules. “We focus on the behavioural side of trading   helping people examine why they made a decision, whether they followed their plan and what patterns are affecting their performance,” he told Disrupt Africa.

A losing trade is not always the lesson

A trader might look at their account at the end of the month and see ten losing trades and ten winning ones. That does not explain why those trades happened. Some losses may have followed an earlier losing trade. The trader may have increased their risk. They may also have ignored their strategy because they expected the market to move.

Those are the details Market Reflex wants users to record. Mdletshe said traders often understand the technical side of the market. The problem can come when they make decisions under pressure. He pointed to impulsive entries, revenge trading, poor risk decisions and failing to stick to a strategy. The app gives traders a place to record those decisions. They can then look back at them later. The idea is simple. The harder part is getting people to keep using the journal. That is one of the things Market Reflex is now testing.

The business is still early

Market Reflex is self-funded. Its iOS app is already available, while an Android version is in development. The company has started attracting users. It is also testing paid advertising. Mdletshe is cautious about describing the startup as a scaled business. “We have begun attracting users and testing paid acquisition, but it would be premature to present the current figures as mature scale or strong recurring revenue,” he said. For now, the company is watching how people use the app. How many sign up? How many come back? And how many are prepared to pay? Those questions will give Market Reflex a better idea of whether the business can grow.

There may be an SME angle

Market Reflex is built for traders. It is not currently an SME management or financial planning platform. The idea behind the journal could still have some relevance for small businesses. An SME owner may decide to buy equipment, increase stock or take on a loan. They may also decide to open another branch. Small businesses do not always have a finance team tracking the thinking behind those decisions.

Keeping a record of why a decision was made could help an owner review it later. They could compare what they expected with what actually happened. That is similar to the thinking behind a trading journal. For now, though, any move into the SME market would be an expansion of Market Reflex's current product.

Market Reflex is testing several markets

The startup is targeting traders in South Africa, the United States, United Kingdom, Canada and Australia. The initial product is aimed at English speaking users. Mdletshe said the company also plans to explore partnerships and localised support in other markets with established retail-trading communities. For now, Market Reflex is focused on getting traders to use the journal regularly. The next step is finding out whether that behaviour can become a sustainable business.