Effective Date: February 23, 2025
TRADING INVOLVES SUBSTANTIAL RISK OF LOSS
Trading and investing in securities, options, futures, and digital assets involves a substantial risk of loss and is not suitable for every investor. You can lose some, all, or in leveraged and short-volatility positions more than your entire deposit. Only risk capital should be used, meaning money you can lose entirely without affecting your financial security or lifestyle. Do not trade with borrowed money, retirement savings, emergency funds, or capital required for living expenses.
TradingRiot is not a registered investment advisor, broker-dealer, commodity trading advisor, or financial planner in any jurisdiction. Nothing published on this platform is investment advice, a recommendation, an offer, or a solicitation to buy or sell any security or financial instrument.
All content, including the systematic strategy signals, screeners, models, scores, and educational material, is general information published without regard to any individual’s financial situation, investment objectives, risk tolerance, tax position, or experience. It is not personalized and cannot be. You are solely responsible for your own decisions and for determining whether any strategy or instrument is appropriate for you. Consult a licensed financial professional before acting.
The performance shown for the systematic strategies is BACKTESTED and HYPOTHETICAL. It does not represent actual trading in a live account, and it has inherent limitations that you must understand before relying on it.
Hypothetical results are prepared with the benefit of hindsight. The rules were selected and refined by a researcher who already knew how the underlying markets had behaved, and no backtest can fully account for that. Simulated results also do not involve financial risk, and no hypothetical record can reproduce the effect of a real drawdown on decision making. Traders frequently abandon a strategy during losses that a backtest simply carries through.
Backtests further assume that orders fill at modelled prices, that liquidity is available at the size required, that instruments remain listed and borrowable, and that data used to generate signals was available at the time of the decision. Real trading meets slippage, partial fills, halts, gaps, borrow costs and unavailability, financing charges, taxes, and outages. Universes constructed from present-day index or exchange membership can also omit companies and tokens that failed, which flatters historical results by excluding losers.
For these reasons, hypothetical results should be treated as an upper bound rather than an expectation. Live results will differ from backtested results, and frequently differ materially and adversely.
Past performance, whether actual, simulated, or indicated by any model, is not indicative of and does not guarantee future results. Any statement about expected returns, volatility, drawdown, Sharpe ratio, win rate, holding period, or probability is an estimate derived from historical data and modelling assumptions. Those assumptions may prove wrong, and market behaviour can change permanently. No representation is made that any account will or is likely to achieve any result.
Losses are a normal and expected feature of every strategy published here. The systematic portfolio recorded a peak-to-trough decline of approximately 21% in its backtested history, and resampling that history produces 95th percentile drawdowns near 30%. A future drawdown may exceed any figure observed historically or produced by simulation. Individual calendar years within the backtest were negative, and losing weeks, months, quarters, and years should be expected while a strategy is behaving as designed.
These strategies are constructed for multi-year holding periods. Anyone who funds an account, follows it for a short period, and stops during a decline may realize the losses without ever experiencing the returns the approach is intended to capture.
The systematic portfolio is designed to hold gross exposure substantially greater than account equity, and in its portfolio-margin configuration may hold roughly three times account value across positions. Leverage multiplies losses as well as gains. Adverse moves can trigger margin calls requiring immediate deposits, and your broker may liquidate positions at any time, without prior notice and at unfavourable prices, to satisfy a margin deficiency. You have no right to an extension. Losses can exceed the amount deposited.
Portfolio margin requirements are determined by risk models operated by your broker and clearing firm. Those requirements can be raised without warning, particularly during volatile markets, which may force deleveraging at the worst possible time.
Options are complex instruments and are not suitable for all investors. Options can expire worthless, causing the loss of the entire premium paid. Writing or selling options exposes you to losses that may be substantially greater than the premium received and, in certain structures, theoretically unlimited. Before trading options, read the disclosure document your broker provides on the characteristics and risks of standardized options.
Short-volatility strategies carry a particular risk profile: they tend to produce frequent small gains punctuated by rare, very large losses. Volatility can multiply within a single session, and instruments tracking volatility can move violently overnight when no exit is available. Historical episodes have seen short-volatility positions and products lose the large majority of their value in one day.
Leveraged and inverse exchange-traded products reset exposure periodically, so their returns compound in ways that diverge from a multiple of the underlying over holding periods longer than a single session, particularly in volatile or trendless markets. Short positions in such products also incur borrow costs that can rise sharply or become unavailable, forcing a buy-in at an unfavourable price.
Futures trading involves leverage, daily mark-to-market settlement, and the risk of losses exceeding your initial margin. Contracts expire and must be rolled, which introduces additional cost and risk.
Digital assets are highly volatile and largely unregulated relative to traditional markets. Risks include total loss of value, exchange insolvency or failure, custody and wallet loss, network and protocol failures, delisting, market manipulation, thin liquidity, forced liquidation of perpetual futures positions, funding-rate costs, and abrupt changes in the legal or tax treatment of the asset in your jurisdiction. Digital assets may not be covered by any investor protection scheme.
Signals are published on a defined schedule and assume execution at a specified point, typically the closing auction of the following session. Your fills will differ. Your results will also be affected by the size of your account, whole-share and whole-contract rounding, your broker’s commissions, spreads, financing and borrow rates, the timing of your deposits and withdrawals, taxes, currency conversion, and any trade you skip, delay, resize, or override.
Consequently, your realized results will differ from the published strategy results, and the difference may be large. Nothing here obliges you to place any trade, and every order you enter is your own decision.
Platform content depends on third-party market data that may be delayed, incomplete, revised, or wrong. Models and signals are produced by software that may contain errors, and they may be changed, recalculated, retired, or suspended at any time. Data feeds, the site, and signal delivery may be unavailable when you need them, including during periods of market stress. Do not rely on this platform as the sole basis for any decision, and verify prices and positions with your broker before trading.
No guarantee of profit, income, or capital protection is made or implied. TradingRiot has no discretionary authority over your account, does not place orders on your behalf, does not hold client funds, and receives no share of your trading results. You are solely responsible for your own trading, for the suitability of any strategy to your circumstances, for compliance with the laws and tax rules of your jurisdiction, and for any losses you incur.
Where the owner or staff of TradingRiot trade the same strategies published on this platform, their positions, sizing, timing, and results may differ from anything shown here, and their participation is not a recommendation to you.
This disclosure supplements, and does not limit, the disclaimers and limitation of liability set out in the Terms of Service. If you do not accept these risks in full, do not use the strategies or signals published on this platform.