⚠️ Trading Risk Disclaimer

Last Updated: November 28, 2025

1. General Trading Risks

1.1 Market Risk

Financial markets are volatile and unpredictable. Market conditions can change rapidly due to:

• Economic news and data releases
• Geopolitical events and crises
• Central bank policy decisions
• Market sentiment and speculation
• Black swan events (COVID-19, wars, etc.)

1.2 Leverage Risk

Leverage magnifies both profits AND losses. Common leverage levels:

• 1:30 leverage: $1,000 controls $30,000 position
• 1:100 leverage: $1,000 controls $100,000 position
• 1:500 leverage: $1,000 controls $500,000 position (very risky!)

A 1% move against you with 1:100 leverage = 100% loss of capital!

1.3 Liquidity Risk

• Inability to exit positions during high volatility
• Widened spreads during news events
• Slippage (filled at worse price than expected)
• Gap risk (price jumps over your stop-loss)

2. Automated Trading Risks

2.1 Algorithm Limitations

Quantum Edge Trader, like ALL trading algorithms:

• Cannot predict the future
• May underperform in certain market conditions
• Can experience losing streaks
• May fail to adapt to unprecedented events
• Relies on historical data (past ≠ future)

2.2 Technical Risks

• Internet Connection: Disconnection can prevent order execution
• VPS/Server Issues: Downtime or crashes
• Broker Problems: Platform outages, requotes, execution delays
• Power Outages: Can interrupt EA operation
• Software Bugs: Despite testing, bugs may occur

2.3 AI Validation Risks

The Claude AI validation feature:

• Depends on API availability (Claude service may be down)
• May reject profitable trades or approve losing ones
• Cannot guarantee 100% accuracy
• May fail during high-frequency trading periods
• Costs additional API fees (your responsibility)

3. Performance Disclaimers

3.1 No Guaranteed Returns

WE DO NOT GUARANTEE ANY SPECIFIC RETURN OR WIN RATE.

• Past backtest results do NOT guarantee future performance
• Demo account results may differ from live trading
• Win rates of 60-70% mentioned are historical and may not continue
• Individual results will vary significantly

3.2 Backtesting Limitations

Backtest results are NOT reliable indicators because:

• They use historical data (hindsight bias)
• They don’t account for slippage and spread variations
• They may be over-optimized (“curve-fitted”)
• They don’t reflect emotional stress of real trading

3.3 Forward Testing Reality

Live trading typically shows:

• Lower win rates than backtests
• Higher drawdowns
• More slippage and spread costs
• Psychological challenges not present in testing

4. Specific Asset Class Risks

4.1 Forex (Currency Pairs)

• Exchange rate volatility
• Interest rate differentials (swap fees)
• Central bank interventions
• Political instability affecting currencies

4.2 Gold (XAUUSD)

• Safe-haven flows (unpredictable spikes)
• Dollar correlation
• Geopolitical events causing gaps
• Wide spreads during volatile periods

4.3 Cryptocurrencies (BTC, ETH, etc.)

• EXTREME VOLATILITY: 20-50% swings in hours
• 24/7 markets (no close for weekend protection)
• Flash crashes and pump-and-dump schemes
• Regulatory uncertainty and bans
• Exchange hacks and security breaches
• Very high leverage risk

5. Prop Firm Challenge Risks

If using Quantum Edge Trader for prop firm challenges:

• Daily Loss Limits: EA may not prevent hitting limits
• Max Drawdown: Single bad day can fail challenge
• Consistency Rules: EA may not meet minimum trading days
• Prohibited Strategies: Some firms ban EAs or specific strategies
• Weekend Gaps: Can trigger stop-outs on Monday

READ YOUR PROP FIRM RULES CAREFULLY! We are NOT responsible for failed challenges.

6. Broker-Specific Risks

• Broker Reliability: Not all brokers are trustworthy
• Spread Manipulation: Some brokers widen spreads during news
• Stop-Loss Hunting: Unethical brokers trigger stops deliberately
• Withdrawal Issues: Some brokers delay or refuse withdrawals
• Regulatory Status: Unregulated brokers offer no protection

Recommendation: Only use regulated brokers (FCA, ASIC, CySEC, NFA).

7. Financial Advice Disclaimer

THIS SOFTWARE IS NOT FINANCIAL ADVICE.

• We are NOT financial advisors or investment professionals
• This is a technical tool, not investment advice
• Always consult a licensed financial advisor
• Never trade with money you can’t afford to lose
• Consider your personal financial situation carefully

8. User Responsibilities

YOU ARE SOLELY RESPONSIBLE FOR:

• All trading decisions and their consequences
• Choosing appropriate risk settings
• Monitoring the EA’s performance
• Maintaining adequate account balance
• Understanding your broker’s terms
• Complying with local trading regulations
• Keeping backups and monitoring positions

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW:

• We are NOT liable for any trading losses
• We are NOT liable for missed profit opportunities
• We are NOT liable for technical failures
• We are NOT liable for broker issues or fraud
• We are NOT liable for API downtime (Claude, etc.)
• We are NOT liable for incorrect configuration

YOUR MAXIMUM RECOVERABLE AMOUNT IS LIMITED TO THE PURCHASE PRICE OF THE SOFTWARE.

10. Regulatory Notices

United States (CFTC/NFA)

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.

European Union (ESMA/MiFID II)

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.

United Kingdom (FCA)

Spread betting and CFD trading are leveraged products that carry a high level of risk to your capital. You should only trade with money you can afford to lose.

Australia (ASIC)

Trading derivatives carries significant risks and is not suitable for all investors. You could lose more than your initial deposit.

11. Psychological Risks

• Overconfidence: Early wins can lead to excessive risk-taking
• Revenge Trading: Attempting to recover losses quickly
• FOMO: Fear of missing out on trades
• Stress: Constant monitoring can cause anxiety
• Addiction: Trading can become compulsive

12. Recommended Risk Management

To minimize risk (but NOT eliminate it):

• ✅ Start with demo account (practice first!)
• ✅ Use low risk per trade (0.5-1% maximum)
• ✅ Never risk more than 5% of capital on correlated trades
• ✅ Maintain minimum 3:1 risk-reward ratio
• ✅ Always use stop-losses (never disable!)
• ✅ Avoid trading major news events initially
• ✅ Keep detailed trading journal
• ✅ Withdraw profits regularly

13. Support Limitations

Our support team provides:

• ✅ Technical assistance with Software installation
• ✅ Help with configuration and settings
• ✅ Troubleshooting errors and bugs

Our support team does NOT provide:

• ❌ Trading advice or strategy recommendations
• ❌ Guarantees of profitability
• ❌ Compensation for trading losses
• ❌ Broker selection or recommendations

14. Questions?

If you have questions about these risks or need clarification, contact us BEFORE purchasing:

• Email: support@quantumedge-trading.com

By purchasing and using Quantum Edge Trader, you confirm that you have read this Risk Disclaimer and accept all risks associated with automated trading.