Risk Disclosure
The risks of trading on other people's alerts, of automating it, and what the statistics in Parabolt do and do not tell you.
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You can lose all the money in your account, and with margin, short options or futures, more than that. Parabolt gives no investment advice and does not know whether trading suits you. Only trade money you can afford to lose.
1. Trading risk
- Stocks, options and futures can lose value quickly. Options can expire worthless; a whole premium can be lost in a day, and same-day expiries in minutes.
- Leverage and margin magnify losses as well as gains. Futures and short options can lose more than you deposited. Your broker can close positions without asking you.
- Prices can gap past a stop. A stop-loss limits a loss only if it fills near its price, which is not guaranteed.
- Crypto and perpetual contracts trade around the clock, move faster than stocks and can be liquidated without warning. At a broker that trades crypto (such as Alpaca), the Service can place crypto orders when a plan follows crypto signals; other crypto accounts are tracked only (read-only wallet links).
2. Risk of following alerters
- Alerters are independent people, not Parabolt. They can be wrong, change their style, stop posting, post by mistake, or trade against their own alerts.
- You will not get the alerter's prices. You act after they post, often at a different price, size and time, and some alerts cannot be filled at all.
- Following several alerters can stack the same risk in your account.
3. Risk of automation
- Software, connections and brokers fail. An alert can be missed, read wrongly, delayed or acted on twice. An order can be rejected, partly filled, sent late or not sent, and an exit can fail and leave a position open.
- Automated orders can go out faster than you can react, so a bad run of alerts can cost a lot before you notice.
- Your settings decide what happens. A mistake in a plan (size, account, limits) is carried out exactly as written.
- Your broker's records are the truth. What Parabolt shows can lag behind or differ from them.
Before trading live, run a plan as a dry run or on a paper account, start small, and watch your brokerage account directly.
4. What alerter statistics mean
Win rates, average results and other figures shown for an alerter are calculated by Parabolt from the entry and exit prices in that alerter's posted alerts, using the same method for every alerter. They are hypothetical. They are not the alerter's audited track record, not your results, and not any member's real fills.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since the trades have not actually 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 profits or losses similar to those shown.
They also leave out commissions, fees, slippage, the delay between an alert and your order, and alerts you could not have filled. A small number of alerts says very little. Past results do not predict future results.
5. Conflicts of interest
Quantum Wave has a business relationship with the operator of Parabolt.