Trading Risk Disclosure

Last updated: October 2026 · All legal pages

Trading and investing involve risk of financial loss. You can lose the money you trade with, and with leveraged products (futures, options selling, intraday leverage) you can lose more than your initial margin. Only trade with money you can afford to lose.

Market risk

Prices move against positions. Gaps, news, illiquidity, circuit limits and expiry effects can make losses larger and faster than expected. Options can lose their entire premium; futures and short options can lose more than the margin blocked.

Execution risk

An order may not fill, may fill partially, or may fill at a worse price (slippage). Stop-loss orders are not guaranteed: in a fast market the exit may happen well past the stop level or not at all until the next available price.

Automation risk

Automated systems follow rules literally and quickly. A rule that is wrong, a data glitch, a connectivity drop, a broker API change, or a software error can produce trades you did not intend. See the Automated Trading Risk Disclosure.

Past and simulated performance

Backtests use historical data and assumptions. Paper trading is a simulation. Neither guarantees future results; real execution differs because of liquidity, slippage, latency, charges, taxes and rejected orders.

Your decision

CandleAlgo does not recommend trades. Every algo runs a rule you reviewed and deployed. Start with paper money, then small amounts, and verify orders and positions with your broker.