Risk Disclosure

Please read this carefully before using our platform

Critical Warning

Trading cryptocurrencies, stocks, options, and other financial instruments involves substantial risk of loss. You could lose some or all of your invested capital. Only trade with money you can afford to lose completely.

General Trading Risks

  • Market Volatility: Prices can move rapidly and unpredictably, especially in cryptocurrency markets which trade 24/7
  • Leverage Risk: Using leverage amplifies both gains and losses. You can lose more than your initial investment
  • Liquidity Risk: Some assets may be difficult to sell quickly without significant price impact
  • Regulatory Risk: Laws and regulations may change, affecting your ability to trade certain assets
  • Currency Risk: Exchange rate fluctuations can affect your returns

Automated Trading Risks

  • System Failures: Software bugs, server outages, or network issues could prevent trades from executing as intended
  • Strategy Limitations: Past performance of trading strategies does not guarantee future results. Market conditions change
  • API Issues: Exchange APIs may experience delays, rate limits, or outages that affect trade execution
  • Over-optimization: Strategies optimized on historical data may not perform well in live markets
  • Flash Crashes: Sudden, extreme price movements can trigger unexpected losses before stops execute

Risk Management Recommendations

  • Start with Demo: Always test strategies in demo/paper trading mode before using real funds
  • Risk Only What You Can Lose: Never trade with money needed for essential expenses
  • Use Stop-Losses: Always set appropriate stop-loss orders to limit potential losses
  • Diversify: Don't put all your capital into a single trade or asset
  • Monitor Regularly: Even with automation, regularly check your positions and performance
  • Start Small: Begin with small position sizes until you understand how the system performs
  • Limit Leverage: Use conservative leverage, especially when starting

No Financial Advice

AutomaticTrades is not a registered investment advisor, broker-dealer, or financial planner. The information and tools provided by our platform are for educational and informational purposes only and should not be construed as financial advice.

You should consult with a qualified financial professional before making any investment decisions. We do not make any guarantees about the accuracy, completeness, or suitability of any information or strategies.

Acknowledgment

By using AutomaticTrades, you acknowledge that you have read and understood this risk disclosure statement, and you accept all the risks associated with trading financial instruments. You agree that AutomaticTrades and its team are not liable for any losses you may incur.