 | Hypothetical
or simulated performance results have certain inherent limitations. Unlike an
actual performance record, simulated results do not represent actual trading.
Also, 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 (1).
No representation is being made that any account will or is likely to achieve
profits or losses similar to those shown. |
| The information contained in this site has been
compiled in good faith, and in using it, the user agrees that the author and any
other entities associated with this site shall not be liable for any direct,
indirect, consequential loss arising from this usage, or the use of information
and material on the Internet via web links from this site including, but not
limited to errors, omissions, defects, interruptions, delays in operation, or
transmission, computer viruses, or line failure, to the maximum extent permitted
by law. Please note that trading is a risky business. You may lose your entire
investment capital and more. |
| Hypothetical performance results have many
inherent limitations, some of which are described below. No representation is
being made that any account will or is likely to achieve profits or losses
similar to those shown. In fact, there are frequently sharp differences between
hypothetical performance results and the actual results subsequently achieved by
any particular trading program. |
| One of the limitations of hypothetical
performance results is that they are generally prepared with the benefit of
hindsight (2). In addition, hypothetical trading does not involve
financial risk, and no hypothetical trading record can completely account for
the impact of financial risk in actual trading. For example, the ability to
withstand losses or to adhere to a particular trading program in spite of
trading losses are material points which can also adversely affect actual
trading results. There are numerous other factors related to the market in
general or to the implementation of any specific trading program which can not
fully be accounted for in the preparation of hypothetical performance results
and all of which can adversely affect actual trading results. |
| You may need to know that in May of 2000 the CFTC
took legal action against me. Here is the story: In late 1998 when I
started my service I was not registered as a CTA, and I did not post the
required legal disclaimer by the CFTC on my Website, I chose the phrase
"the current account size I am trading is $75k" in my mind it
was to show traders the account size needed to trade safely following my
system (that was before I changed the trading strategy and subsequently
reduced the account size to the current level). I got registered, added
the disclaimer, and got rid of that phrase. Note that no body complained
about my service it was an action taken by the CFTC against me. The sad
part is the action does not go away regardless of its reason.
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(1) & (2) My trading system does not benefit from
hindsight because I usually send my trading plan to my clients before
the move in the market takes place. The result of The Plan is calculated
at the end of the day as if a trader is following it to the point in the
Forex market. My track record is not based on back testing but on day to
day work. |
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