Trading foreign exchange (Forex), contracts for difference (CFDs), and other financial instruments on margin carries a high level of risk and may not be suitable for all investors.
1. High Risk Warning & Capital at Risk
Before deciding to participate in algorithmic trading, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
2. Nature of Forex and CFD Trading
Forex and CFDs are highly leveraged products. The high degree of leverage can work against you as well as for you. A small market movement can have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you.
3. Algorithmic & Automated Trading Risks
Summit Strategy AI provides automated trading software and infrastructure. While our algorithms (such as the Event Horizon engine) are designed using advanced quantitative methods, machine learning, and strict risk parameters, past performance is absolutely no guarantee of future results.
Automated trading systems can execute trades rapidly. This can compound losses just as quickly as it can compound gains. Market conditions can change rapidly and unexpectedly, rendering previously successful algorithmic models unprofitable.
4. Technical & System Failure Risks
The use of internet-based trading systems involves risks including, but not limited to, the failure of hardware, software, and internet connection. Technical failures, latency, server outages, or connectivity issues with your broker or our platform (including MetaApi) can result in unintended trading results, missed trades, or duplicate executions. We are not responsible for communication failures or delays when trading via the Internet.
5. Market Volatility & Slippage
During periods of high market volatility (e.g., news events, economic data releases), liquidity can decrease and spreads can widen significantly. This can lead to slippage—where the execution price of a trade differs from the expected price. Stop-loss orders do not guarantee that your loss will be limited to the intended amount, as market conditions may make it impossible to execute such orders at the stipulated price.
6. Prop Firm Specific Risks
If using Summit Strategy AI to trade on evaluation accounts or funded accounts provided by proprietary trading firms (e.g., FTMO, The Funded Trader), it is your sole responsibility to manage your risk parameters (lot multipliers, daily drawdown caps, trailing drawdowns) to comply with the firm's specific rules. Summit Strategy AI is not responsible for any breached accounts, failed challenges, or lost funding. Our "Prop Firm Guard" feature is a technological aid, not a foolproof guarantee against breaching firm rules.
7. No Guarantees of Performance
Any performance statistics, backtest results, or projected returns displayed on the Summit Strategy AI website are purely hypothetical and for informational purposes only. Simulated results have inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
8. Regulatory Notice
Summit Strategy AI is a software provider and is not regulated by the Financial Conduct Authority (FCA) or any other financial regulatory body. We do not hold client funds or execute trades directly.
9. Acknowledgement & Consent
By continuing to use our services, you expressly acknowledge that you understand these risks, you are willing to assume them, and you absolve Summit Strategy AI of any liability for your trading losses.
10. Contact Us
If you have any questions about this Risk Disclosure, please contact us at [email protected].