⚠️ RISK DISCLOSURE

Important Risk Information for Forex Trading

Effective Date: June 25, 2025
Last Updated: June 25, 2025

🚨 CRITICAL RISK WARNING

FOREX TRADING INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. YOU COULD LOSE ALL OF YOUR INVESTED CAPITAL. NEVER TRADE WITH MONEY YOU CANNOT AFFORD TO LOSE COMPLETELY.

Important Notice

This Risk Disclosure document is designed to inform you of the risks associated with trading foreign exchange (forex) and using automated trading systems like Range Hunter Pro. You must read and understand these risks before purchasing or using our trading system.

🛑 MANDATORY READING

By purchasing Range Hunter Pro, you acknowledge that you have read, understood, and accepted all risks outlined in this document. Trading forex involves substantial risk and is not suitable for all investors.

This disclosure complies with regulatory requirements in South Africa and international jurisdictions. The information provided is for educational purposes and does not constitute financial advice.

1. GENERAL FOREX TRADING RISKS

1.1 Risk of Loss

💸 SUBSTANTIAL RISK OF LOSS

You could lose some or all of your invested capital. Foreign exchange trading carries a high level of risk that may not be suitable for all investors.

1.2 Leverage Risk

Forex trading typically involves leverage, which can magnify both profits and losses:

  • Amplified Losses: Small adverse market movements can result in significant losses
  • Margin Calls: You may be required to deposit additional funds
  • Position Liquidation: Your broker may close positions without your consent
  • Rapid Loss: You can lose more than your initial deposit

1.3 Market Risk

Currency markets are subject to various risks:

Risk Factor Impact Level Description
Volatility Very High Currency prices can fluctuate rapidly and unpredictably
Economic Events Very High News releases can cause sudden market movements
Political Risk High Government changes and policies affect currency values
Interest Rate Changes High Central bank decisions impact currency valuations
Liquidity Risk High Difficulty executing trades during volatile periods

1.4 Counterparty Risk

🏦 BROKER RISK

Your broker may become insolvent, experience technical difficulties, or engage in practices that affect your trading:

  • Insolvency or bankruptcy of your broker
  • Regulatory actions against your broker
  • Technical failures or system outages
  • Manipulation of spreads or execution

2. AUTOMATED TRADING SYSTEM RISKS

2.1 System-Specific Risks

Automated trading systems like Range Hunter Pro introduce additional risks:

🤖 AUTOMATION RISKS

  • Technical Failures: Software bugs or system crashes can cause unexpected losses
  • Connectivity Issues: Internet or broker connection problems may prevent proper execution
  • Over-Optimization: Systems may be optimized for past market conditions that don't repeat
  • Market Regime Changes: Strategies may become ineffective in new market conditions

2.2 Backtesting Limitations

📊 PAST PERFORMANCE WARNING

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Our backtesting data has inherent limitations:

  • Historical data may not reflect future market conditions
  • Backtesting cannot account for emotional factors in live trading
  • Slippage and execution delays are difficult to simulate accurately
  • Market conditions during backtesting period may not recur

2.3 Range Hunter Pro Specific Risks

Our system has specific limitations and risks:

  • Single Currency Pair: System is designed only for EURUSD trading
  • Session Dependency: Performance relies on specific market session characteristics
  • Spread Sensitivity: Performance may degrade with wider spreads
  • Market Evolution: Institutional trading patterns may change over time

2.4 Technology Risks

Technology Risk Probability Potential Impact
Internet Connection Failure High Inability to monitor or close trades
MetaTrader 5 Platform Crash High System stops trading, open positions at risk
Broker Server Downtime High Cannot execute trades or manage positions
Computer Hardware Failure High Complete loss of trading control
Power Outage High System shutdown during active trades

3. MARKET CONDITION RISKS

3.1 Gap Risk

📈 MARKET GAPS

Markets can "gap" (open significantly higher or lower than the previous close), potentially causing:

  • Stop losses to be executed at worse prices than intended
  • Substantial losses exceeding your risk tolerance
  • Inability to exit positions at desired levels

3.2 Low Liquidity Periods

During certain market conditions, liquidity may be reduced:

  • Holiday Periods: Reduced market participation
  • Economic Announcements: Extreme volatility and wide spreads
  • Session Transitions: Lower volume between major sessions
  • Crisis Events: Market makers may withdraw from the market

3.3 Regulatory Changes

⚖️ REGULATORY RISK

Changes in financial regulations can affect trading:

  • Leverage restrictions may be imposed
  • Automated trading may be restricted or banned
  • New reporting requirements may be introduced
  • Tax treatment of trading profits may change

3.4 Economic and Political Events

Major events can cause extreme market volatility:

  • Central bank policy announcements
  • Economic data releases (GDP, employment, inflation)
  • Political elections and referendums
  • Geopolitical conflicts or crises
  • Natural disasters affecting major economies

4. FINANCIAL AND PERSONAL RISKS

4.1 Capital Loss Risk

💰 CAPITAL AT RISK

YOU COULD LOSE ALL OF YOUR TRADING CAPITAL. Consider the following before trading:

  • Only use money you can afford to lose completely
  • Never use borrowed money or credit to fund trading
  • Do not use money intended for living expenses
  • Avoid using retirement savings or emergency funds

4.2 Psychological Risks

Trading can have significant psychological impacts:

  • Stress and Anxiety: Watching money fluctuate can be emotionally taxing
  • Addiction Potential: Some individuals may develop compulsive trading behaviors
  • Overconfidence: Early success may lead to excessive risk-taking
  • Loss Aversion: Reluctance to close losing positions may amplify losses

4.3 Opportunity Cost

⏰ TIME AND RESOURCES

Consider the opportunity cost of forex trading:

  • Time spent learning and monitoring trades
  • Capital that could be invested in other opportunities
  • Potential for consistent losses over time
  • Stress impact on personal and professional life

4.4 Tax Implications

Trading profits and losses may have tax consequences:

  • Trading profits may be subject to income tax
  • Tax treatment varies by jurisdiction and trading frequency
  • Record-keeping requirements for all trades
  • Potential for tax audits if trading is frequent

5. RANGE HUNTER PRO SYSTEM LIMITATIONS

5.1 Performance Limitations

📉 NO PERFORMANCE GUARANTEES

WE MAKE NO GUARANTEES ABOUT FUTURE PERFORMANCE. Our system limitations include:

  • Backtesting results may not reflect live trading performance
  • Market conditions may change, affecting system effectiveness
  • Slippage and spreads may reduce actual profits
  • System may experience extended losing periods

5.2 Technical Limitations

Our system has specific technical requirements and limitations:

Limitation Impact Mitigation
Windows Only Cannot run on Mac or Linux Use Windows VPS or virtual machine
EURUSD Only Limited to single currency pair Cannot diversify across multiple pairs
MT5 Dependency Requires specific trading platform Platform must remain stable and updated
Internet Required Constant connection needed Use reliable internet and backup connections
Broker Compatibility May not work with all brokers Test with demo account before live trading

5.3 Market Dependency

The system's performance depends on specific market characteristics:

  • Session-Based Logic: Relies on London and New York session patterns
  • Volatility Requirements: May underperform in very low or high volatility
  • Trend Dependency: Performance may vary in different market trends
  • Spread Sensitivity: Designed for specific spread conditions

5.4 User Responsibility

👤 YOUR RESPONSIBILITY

You are solely responsible for:

  • Understanding how the system works before using it
  • Monitoring system performance and account balance
  • Ensuring adequate capital and risk management
  • Making the decision to continue or stop using the system
  • Compliance with applicable laws and regulations

6. RISK MANAGEMENT RECOMMENDATIONS

6.1 Capital Management

💡 BEST PRACTICES

To minimize risk, consider these recommendations:

  • Start Small: Begin with minimum account size and lot sizes
  • Risk Limit: Never risk more than 2% of account per trade
  • Stop Loss: Always use stop losses to limit potential losses
  • Diversification: Don't put all capital into one trading system

6.2 Monitoring and Controls

Implement proper monitoring and control measures:

  • Daily Monitoring: Check system performance and account balance daily
  • Drawdown Limits: Set maximum acceptable losses before stopping
  • Performance Reviews: Regularly assess system effectiveness
  • Emergency Procedures: Know how to quickly close all positions

6.3 Education and Preparation

Before using any trading system:

  • Understand basic forex trading concepts
  • Learn about risk management principles
  • Practice with demo accounts before live trading
  • Read all documentation thoroughly
  • Understand your broker's terms and conditions

6.4 Professional Advice

🏛️ SEEK PROFESSIONAL ADVICE

Consider consulting with qualified professionals:

  • Financial Advisor: Assess if forex trading fits your financial situation
  • Tax Professional: Understand tax implications of trading
  • Legal Advisor: Ensure compliance with applicable regulations
  • Mental Health Professional: If trading causes significant stress

7. REGULATORY WARNINGS BY JURISDICTION

7.1 South Africa (FSCA)

🇿🇦 FSCA WARNING

The Financial Sector Conduct Authority of South Africa warns that forex trading:

  • Is high-risk and may result in the loss of your entire investment
  • Should only be undertaken by experienced investors
  • May not be suitable for all investors
  • Requires careful consideration of your financial circumstances

7.2 International Regulatory Warnings

Jurisdiction Regulator Key Warning
European Union ESMA 74-89% of retail accounts lose money trading CFDs
United States CFTC Simulated results may not reflect actual trading
United Kingdom FCA High risk of losing money rapidly due to leverage
Australia ASIC May lose substantially more than initial investment
Canada IIROC High degree of leverage can work against you

7.3 Compliance Requirements

You are responsible for ensuring compliance with applicable laws:

  • Verify that forex trading is legal in your jurisdiction
  • Understand tax obligations for trading profits
  • Comply with any licensing or registration requirements
  • Report trading activity as required by law

✍️ RISK ACKNOWLEDGMENT

BY PURCHASING RANGE HUNTER PRO, YOU ACKNOWLEDGE AND CONFIRM THAT:

  1. You have read and understood this entire Risk Disclosure document
  2. You understand that forex trading involves substantial risk of loss
  3. You could lose all of your invested capital
  4. Past performance does not guarantee future results
  5. You are using money you can afford to lose completely
  6. You understand the limitations of automated trading systems
  7. You will implement appropriate risk management measures
  8. You are solely responsible for your trading decisions and outcomes
  9. You have considered seeking professional financial advice
  10. You understand that Range Hunter Pro makes no performance guarantees

By proceeding with your purchase, you confirm your understanding and acceptance of all risks outlined in this disclosure and agree that you are trading at your own risk.

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