⚠️ Risk Disclosure Statement

Last Updated: 2026-02-09

1. General Trading Risks

• Volatility Risk: Securities prices can change rapidly and unpredictably, especially during market openings, closings, and major news events.
• Liquidity Risk: Some securities may be difficult to buy or sell at desired prices, especially during market stress or for thinly traded securities.
• Gap Risk: Prices may "gap" significantly between trading sessions, potentially resulting in losses greater than stop-loss orders.
• Systemic Risk: Market-wide events can affect all securities simultaneously, limiting diversification benefits.

2. Automated Trading Risks

• Software Bugs: Trading algorithms may contain errors that result in unintended trades or losses.
• Execution Errors: Orders may be executed at different prices than expected due to latency, slippage, or market conditions.
• Connectivity Failures: Internet outages, server issues, or API failures may prevent trade execution or monitoring.
• Over-Optimization: Strategies optimized on historical data may fail in live markets ("curve fitting").
• Flash Crashes: Automated systems may react poorly to sudden market movements, potentially amplifying losses.
• Runaway Algorithms: Malfunctioning systems may execute rapid trades depleting your account.

3. Simulation vs. Live Trading

How Simulations Work

• All strategies are backtested on 2 years of minute-level market data
• Each strategy starts with a hypothetical $10,000 capital allocation
• Trades are "executed" using historical price data from Polygon.io
• When capital falls below $100, an additional $10,000 is added ("refund") to continue data collection
• Each refund creates a new "era" - performance metrics reset to measure current era performance
• Strategies with multiple refunds indicate higher risk profiles
• Total invested capital = $10,000 × (1 + number of refunds)

Simulation Limitations

• Simulations assume trades execute at the next daily close price
• No slippage, spread, or market impact is modeled
• No commission or fee deductions are applied
• Liquidity constraints are not considered
• After-hours and pre-market movements may not be reflected

4. Strategy-Specific Risks

Important: For complete details on all trading strategies, their mathematical formulas, and known limitations, please review our 📊 Strategy Disclosure document.

Backtesting Limitations

• Backtests do not account for slippage, commissions, or market impact
• Historical data may contain errors or survivorship bias
• Market conditions change; strategies that worked before may fail
• Backtests assume perfect execution which is unrealistic
• Over-optimization can produce strategies that fail in live trading

Specific Strategy Risks

• Mean Reversion: Markets can trend for extended periods, causing significant drawdowns.
• Momentum: Sudden reversals can cause rapid losses; requires disciplined exit rules.
• Pairs Trading: Correlations can break down unexpectedly; both positions may move against you.
• Day Trading: Requires constant attention; pattern day trader rules may apply.

4. Regulatory Risks

Pattern Day Trader (PDT) Rule

• If your margin account balance falls below $25,000, you are limited to 3 day trades per 5 business days.
• Violating this rule may result in account restrictions or forced liquidations.
• This platform attempts to track PDT but cannot guarantee compliance.

Other Regulatory Considerations

• Tax obligations vary by jurisdiction; consult a tax professional.
• Some securities or strategies may be restricted in your jurisdiction.
• Regulations may change, affecting trading capabilities.

5. Third-Party Risks

• Brokerage Risk: Your brokerage may experience outages, errors, or financial difficulties.
• Data Provider Risk: Market data may be delayed, inaccurate, or unavailable.
• API Risk: Brokerage APIs may change, be deprecated, or malfunction.

5a. Data Source Disclosure

Historical Backtest Data

• Source: Licensed third-party market data providers
• Coverage: 2 years of minute-level OHLCV data (February 2024 – February 2026)
• Symbols: 114+ actively traded stocks and cryptocurrencies
• Reliability: Commercial-grade data with high availability
• Limitation: Historical data may be adjusted or corrected after initial publication

Real-Time Stock Data

• Source: Third-party market data APIs
• Delay: Approximately 1-15 minutes from real-time
• Reliability: Not guaranteed; may experience outages without notice
• Limitation: If data sources become unavailable, signals will be affected

Real-Time Cryptocurrency Data

• Source: Alpaca Markets (Official API)
• Delay: Less than 1 minute from real-time
• Reliability: Official API with service level agreement
• Legal Status: Fully licensed for trading use

6. Financial Suitability

Before trading, ensure you:

• Have adequate emergency savings (3-6 months expenses)
• Are not using borrowed money to trade
• Can afford to lose your entire trading capital
• Understand the strategies you are using
• Have realistic expectations about returns

7. No Guarantee of Profit

This platform and its operators:

• Make NO guarantees or promises of profit
• Do NOT provide investment advice
• Are NOT responsible for trading losses
• Cannot predict future market movements

If you do not understand these risks or are not willing to accept them, do not use this platform.