Understanding Forex Trading Risks

Foreign exchange trading involves substantial risk of loss and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite.

Automated Trading Risks

Automated trading systems like Momentum Bots carry additional risks:

• Technical Failures: Software bugs, server outages, or connectivity issues can result in missed trades or unexpected losses
• Market Conditions: Algorithms may not perform well in all market conditions, especially during high volatility or low liquidity periods
• Over-Optimization: Strategies that work well in backtesting may fail in live market conditions
• Slippage and Execution: Actual execution prices may differ from expected prices due to market conditions

No Performance Guarantees

Past performance is not indicative of future results. Backtesting results are hypothetical and do not represent actual trading. Live trading results may differ significantly from backtested performance due to:

• Market slippage and execution delays
• Broker spreads and commissions
• Different market conditions than historical data
• Technical issues or system failures

Leverage Risks

Forex trading typically involves high leverage, which can amplify both profits and losses. A small adverse movement in exchange rates can result in substantial losses that may exceed your initial investment.

Regulatory Considerations

Forex trading regulations vary by jurisdiction. Ensure you understand and comply with all applicable laws and regulations in your country of residence. Some jurisdictions may restrict or prohibit forex trading for retail investors.

Recommendation

Only trade with money you can afford to lose. Never invest borrowed money or funds needed for essential expenses. Consider seeking advice from an independent financial advisor if you have any doubts about the risks involved.

Acknowledgment

By using Momentum Bots services, you acknowledge that you have read, understood, and accepted all the risks outlined in this disclosure. You agree that Momentum Bots is not responsible for any trading losses you may incur.