Risk Disclosure

1. High Risk of Capital Loss

Trading in the financial markets, particularly in derivatives (Futures and Options), involves a high degree of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment.

2. Risks of Algorithmic Trading

Algorithmic trading heavily relies on technology, including software, hardware, and network connectivity. The risks associated with automated trading systems include, but are not limited to:

• Execution Risk: Orders may not be executed at the expected prices due to market volatility, slippage, or lack of liquidity.
• System Failures: Software bugs, server crashes, or API rate limits may prevent orders from being sent or canceled, leading to unintended positions.
• Data Latency: Delays in market data feeds can cause the algorithm to make decisions based on outdated information.

3. Backtest Results Do Not Guarantee Profits

Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown in a backtest. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

• Hindsight Bias: Backtesting is done with the benefit of hindsight.
• Execution Differences: Simulations cannot perfectly model live market liquidity, slippage, bid-ask spreads, and partial fills.
• Market Conditions: The market environment that produced historical profitability may not exist in the future.