Commodity Futures
Trading Commission Futures and Options trading has large potential rewards, but
also large potential risk. You must be aware of the risks and be willing to
accept them in order to invest in the futures and options markets. Don't trade
with money you can't afford to lose. This is neither a solicitation nor an
offer to Buy/Sell futures or options. No representation is being made that any
account will or is likely to achieve profits or losses similar to those
discussed on this website. The past performance of any trading system or
methodology is not necessarily indicative of future results.
CFTC RULE 4.41 -
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.
In fact, there are
frequently sharp differences between hypothetical performance results and the
actual results subsequently achieved by any particular trading program.
Hypothetical trading does not involve financial risk, and no hypothetical
trading record can completely account for the impact of financial risk in
actual trading.
As indicated above,
simulated trade results on demonstration ("demo") accounts may be
inaccurate and misleading -- they may not reflect the actual results the user
would see on a real account (using real-money). For example, demo accounts
cannot reflect factors such as trade execution "slippage", which
occurs on real-money accounts but not on demo accounts. Slippage is the
difference between the expected price of a trade (market price), and the price
the trade actually executes at. Slippage often occurs during periods of higher
volatility when market orders are used, and also when larger orders are
executed when there may not be enough interest at the desired price level to
maintain the expected price of trade (known as the "lack of
liquidity"). These types of adverse factors must be dealt with in a
real-money account, but they are usually not reflected in a demo account
environment. Thus, it is entirely possible that a trading robot shows profits
on a demo account, but performs poorly on a real-money account. Unless
otherwise specified, all trading results shown on this site are from demo
accounts
TERMS OF USE
2 comments:
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