TRADING INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. YOU CAN LOSE ALL OR MORE THAN YOUR INITIAL INVESTMENT.
CFTC Rule 4.41 - Hypothetical Performance Limitations
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
1. General Trading Risks
Trading futures, forex, stocks, options, and other financial instruments carries inherent risks:
- Statistics show 95% of day traders lose money
- 80% lose their entire account within 2 years
- There is 100% risk of total loss of capital
- Losses can exceed initial investment due to leverage
2. Specific Risk Factors
Market Risk:
- Unpredictable price movements
- Sudden volatility and market gaps
- Economic events and geopolitical developments
- Gap openings and closings
Leverage Risk:
- Amplified losses from leveraged positions
- Margin calls requiring additional funds
- Potential losses exceeding initial investment
- Interest charges and overnight financing costs
Technical Risk:
- System failures and platform outages
- Internet connectivity issues
- Software bugs and data feed interruptions
- Algorithm malfunctions
Liquidity Risk:
- Inability to exit positions quickly
- Wide bid-ask spreads
- Slippage on order execution
- After-hours trading risks
3. Algorithm-Specific Risks
Automated trading systems carry additional risks:
- Algorithms may not perform in all market conditions
- Backtested results may not reflect future performance
- Mathematical models may become obsolete
- Orders may not execute as expected
- Incorrect settings can amplify losses
- Markets may evolve beyond algorithm adaptation
4. Past Performance Disclaimer
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. All performance data, backtests, and historical results are presented for educational purposes only.
Backtesting Limitations:
- Backtests assume perfect execution without slippage
- Historical data may not reflect current market conditions
- Transaction costs may be incomplete
- Survivorship bias may exist in historical data
- Look-ahead bias may be present
- Real trading involves psychological factors absent in backtests
5. No Guarantee of Profits
Trade Greater makes no warranties or guarantees that:
- Users will achieve profitable results
- Algorithms will generate consistent returns
- Users will pass prop firm evaluations
- Initial investments will be recovered
- Strategies will work in all market conditions
6. Educational Service Notice
Trade Greater is an educational service provider. We are NOT:
- A registered investment advisor
- A licensed broker-dealer
- A financial planning service
- A portfolio management company
- A regulated financial institution
We do not provide investment advice or manage customer funds.
7. Regulatory Compliance
Our services comply with:
- CFTC Rule 4.41
- NFA guidelines
- SEC regulations for educational providers
- Applicable state laws
8. Prop Firm Specific Risks
If using our algorithms for prop firm trading, be aware of:
- Evaluation rules may change without notice
- Funded accounts may be terminated for rule violations
- Profit-sharing terms may be modified
- Withdrawal restrictions may apply
- Performance requirements may be difficult to meet
- Competition for limited funding
9. Technology and Operational Risks
- System downtime and maintenance windows
- Data accuracy errors
- Unintended order execution
- Cybersecurity breaches
- Software update compatibility issues
- Platform compatibility problems
10. Psychological Risks
Trading may impact mental health:
- Stress and anxiety from market movements
- Emotional distress from losses
- Overconfidence after wins
- Addiction-like behavioral patterns
- Poor decision-making under pressure
- Relationship and financial strain
11. Risk Management Recommendations
We strongly recommend:
- Only trade with capital you can afford to lose
- Use proper position sizing and risk management
- Set stop losses on all trades
- Never risk more than 1-2% per trade
- Maintain adequate account capitalization
- Keep trading separate from essential funds
- Seek professional financial advice
12. Acknowledgment
By using Trade Greater's services, you acknowledge that:
- You have read and understand this Risk Disclaimer
- You accept full responsibility for your trading decisions
- You understand the risks involved in trading
- You will not hold Trade Greater liable for trading losses
- You are trading with risk capital only
Contact Information
Trade Greater LLC
Email: legal@tradegreater.com