Risk Disclosure

Trading carries a high risk of loss and is not suitable for everyone. This page explains the main risks of trading and of using automated trading software such as ours.

You can lose money

Trading gold (XAUUSD), forex and other financial instruments, such as indices and crypto, involves substantial risk. You can lose some or all of the money you trade with. Only trade with money you can afford to lose.

Market risks

Volatility: prices can move sharply and quickly. Gold in particular can make large moves within minutes.
Economic news: scheduled releases and unexpected events can cause sudden jumps in price and wider spreads.
Gaps: prices can open far from where they closed, for example after a weekend, skipping over the level you expected to trade at.
Changing conditions: a market that behaved one way in the past can behave very differently in the future.

Trading costs and execution

Spreads, commissions and swap: every trade has costs, and overnight positions can be charged swap. These reduce your results.
Slippage and delays: orders can be filled at a worse price than requested, especially in fast markets or during news.
Broker differences: prices, spreads, contract sizes, symbol names, trading hours and execution quality differ between brokers and account types, so the same software can give different results with different brokers.

Leverage

Many brokers let you trade with leverage, controlling a larger position than your deposit. Leverage magnifies losses as well as gains: a small price move against you can cause a large loss, and your broker may close your positions automatically if your account falls below its margin requirements.

Automated trading and technology

An algo follows its rules without judgement. It can keep trading in conditions it was not designed for.
It only works while the trading platform is running and connected. Internet, computer, VPS, platform or broker problems can stop it, delay orders or leave positions unmanaged.
Wrong settings, such as a lot size that is too large for your account, can cause losses quickly.
Automation does not remove market risk. You should monitor your account regularly.

Stop-loss orders have limits

Stop-loss orders aim to limit losses, but they cannot guarantee that a loss will stop at a particular amount. In fast markets, during news or when prices gap, a stop-loss can be filled at a much worse price than the one set.

Backtests and past performance

Backtests apply trading rules to historical data. They cannot fully reproduce real trading conditions such as spreads, slippage, delays and broker differences, and results from the past do not guarantee future results.

The 80% win rate and 5% maximum drawdown shown on our website for our flagship algo are backtest figures. They are not results from live trading and are not a guarantee of future performance. Future drawdowns can be larger, and you can lose more than any figure shown. Read our Performance Disclaimer for details.

Before you trade

Think about your financial situation, trading experience and how much risk you can accept.
Only trade with money you can afford to lose.
Test the software on a demo account first, to see how it behaves with your broker and settings without risking real money.
If you are unsure, consider getting independent financial advice.

Our role

BullsEdges provides trading software and educational information. We do not manage client funds. Information on this website is general and educational and is not personal investment advice. Every decision to trade, and how, is your own.

No guarantees

Nothing on this website, and no software, setting or strategy, can guarantee a profit or prevent losses.