Automated Trading Risk Disclosure
Trading in leveraged derivatives, contracts for difference (CFDs), synthetic indices, and foreign exchange carries a high degree of risk. Please read this disclosure carefully before deploying automated algorithmic strategies.
warning 1. Risk of Total Capital Loss
Trading derivatives and leveraged assets involves substantial risk of loss. You may lose some or all of the capital deposited into your trading account. In adverse market conditions, losses may accumulate rapidly and exceed your initial expectations.
You should never trade with money you cannot afford to lose, such as essential living expenses, emergency funds, borrowed money, or retirement savings.
memory 2. Automated & Algorithmic Execution Hazards
Automated software executes positions programmatically through network bridges connecting cloud servers to broker MetaTrader 5 (MT5) terminals. Technical risks include:
- Network Latency and Disconnection: Delays between the strategy server, VPS bridge, and broker trading servers can result in orders executing at prices significantly different from the signal generation price (slippage).
- Hardware & Infrastructure Failures: VPS outages, operating system updates, unexpected terminal reboots, or memory leaks may interrupt trade monitoring.
- Broker Spread Expansion: During low-liquidity market hours, weekend rollovers, or high-impact economic releases, brokers widen bid-ask spreads substantially. Wide spreads can prematurely trigger stop-losses or increase cost per trade.
- Execution Requotes and Rejections: Brokers may reject order requests or return requotes during volatile market phases, preventing the software from entering or exiting at target levels.
- Stop-Loss Execution Gaps: A stop-loss order instructs the broker to close a position once a price is breached, but it does not guarantee execution at the exact stop-loss level. In gapping or volatile markets, orders execute at the next available market price (negative slippage).
trending_up 3. Leverage and Margin Liquidation
Leverage magnifies both gains and losses. While higher leverage reduces initial margin requirements, it accelerates the speed at which your account can suffer a Margin Call or forced broker liquidation (stop-out).
Automated systems running continuous strategies may have multiple open positions simultaneously. The customer is responsible for maintaining sufficient free margin at all times to prevent broker stop-out.
analytics 4. Limitations of Historical & Demo Performance
Simulated results, backtests, and demo trading accounts possess inherent limitations:
- Backtests benefit from hindsight and cannot fully model real-world liquidity, order book depth, or real slippage.
- Demo environments execute instantaneously without queue delays, whereas live accounts experience real broker matching queues.
- Market conditions shift dynamically over time; a strategy that performed exceptionally in trending markets may produce drawdowns in choppy, range-bound regimes.
shield 5. Operational Safeguards: Manage-Only Mode
To protect customer accounts, VertexCore implements an automated Manage-Only Mode:
- When a user pauses execution, or when a subscription lapses, the platform instructs the execution engine to stop opening new trades.
- The engine continues managing open positions according to predefined trailing stops or risk parameters until closed.
- Important Customer Warning: Cancelling your web license does NOT automatically close active broker positions. You must always monitor your MT5 broker terminal directly.
gavel 6. No Investment Advice
VertexCore provides algorithmic software tools for execution automation. Nothing on this platform constitutes investment advice, financial planning, tax guidance, or a solicitation to buy or sell securities. You make all decisions to connect broker accounts and select risk parameters independently.