Risk Factors

 Risk Disclosure

1.   No mechanical system will ever be perfect for trading the markets and therefore, "The Ultimate Momentum Signal" may also make losses. The purpose of the Signal is as an aid to  the trader to  find the probability of momentum changes and its direction on the basis of the daily closing prices.

2.   "The Ultimate Momentum Signal" does not consider any support / resistance and / or trend lines. It is neither optimized nor curve fitted and therefore may not be able to achieve its purpose in all kinds of markets and in case of ordinary stocks.

3.   Since the system is based on a set of fixed parameters, "The Signal" may lag in indicating momentum shifts in very fast and volatile markets. 

4.   It is also seen that even if the momentum signals a downward shift by signaling -50 value, in some cases, especially in strong long term bull markets, the momentum shifts again to the opposite within a very short time. In strong bear markets, the opposite may also happen.

5    In spite of the multi-layer Risk Management rules,  the system  may not eliminate  the risk of unanticipated event risks.    

6.   It is advisable to run only very light positions which are fully hedged (Example : Trade mode number (4) which consists only of option buying) or absolutely no positions at all just before major anticipated events like general election results, central budgets etc because of the extreme event risks. (For more information on the such risks and an analysis, please read the page "Risk Analysis").

7.   We, the human beings are the least equipped to trade the markets profitably because of our emotions, biases, opinions and beliefs. ( Well one may ask who else is equipped to trade the markets ! And the answer is that the mechanical systems like this one with the built in risk control measures are generally better than the discretionary trading systems).  Therefore the trader is the most riskiest part of any trading system as he/she may not, in the first place, believe in the momentum shift signals as and when it happens and as a consequence may not enter in to the trades or close the existing trades. Because of this he / she may avoid  the profitable trades and / or make big losses on the existing trades in spite of the system rules.

8.   Not all trading systems may be suitable to all the traders. Therefore, this trading system may not be suitable to all.

9.  No research, information or content contained herein or in the accompanied spreadsheet shall be construed as advice and is offered for information and educational purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy.

10. We do not recommend, promote, endorse or offer any guarantee whatsoever in respect of any services or products offered in the advertisements displayed on the site by Google AdSense.

Cheers and Prosperous Trading and Investing !!!