Hypothetical Results Disclaimer

The following disclaimer provides important information regarding the hypothetical results presented based on backtested stock market performance. Please carefully read and consider the following points:

  1. Past Performance is Not Indicative of Future Results: The backtested results provided herein are purely hypothetical and do not guarantee or predict future investment performance. The stock market is subject to inherent volatility and unpredictability, and historical performance does not necessarily reflect what may occur in the future.
  2. Limitations of Backtesting: Backtesting involves applying a trading strategy to historical market data. It is important to understand that these results are based on certain assumptions, historical data availability, and a specific set of rules. Market conditions and dynamics can change over time, potentially rendering the backtested strategy ineffective in a live trading environment.
  3. No Consideration of Transaction Costs: The hypothetical results do not account for transaction costs, including but not limited to brokerage fees, commissions, slippage, and taxes. These costs can significantly impact actual trading performance and may not have been accounted for in the backtested results.
  4. No Adjustment for Market Impact: The backtested performance does not consider the potential impact of large orders on market prices. In reality, the execution of significant trades may influence the stock’s price, potentially affecting the strategy’s performance.
  5. Data Accuracy and Errors: While efforts have been made to ensure the accuracy of the historical data used for backtesting, there may be errors or inaccuracies in the data. Additionally, past data may be subject to revision, which could affect the results presented.
  6. Risk of Overfitting: Backtesting can be vulnerable to overfitting, where a strategy performs well on historical data due to curve-fitting, but fails to deliver similar results in real-world conditions. Backtested strategies that show exceptional performance on historical data may not necessarily be robust in different market conditions.
  7. Unique Circumstances and Biases: The backtested results are based on historical data and do not consider specific circumstances or biases that may exist during live trading, such as economic events, geopolitical developments, or psychological biases of traders.
  8. Professional Advice Recommended: The hypothetical results provided are for informational purposes only and should not be construed as investment advice or recommendations. Before making any investment decisions, it is essential to consult with a qualified financial advisor who can consider your individual financial situation, risk tolerance, and investment goals.
  9. Potential Losses: Investment in the stock market carries inherent risks, and there is no guarantee of profits. Investors should be aware that they may incur losses, and they should be prepared to bear these losses.
  10. No Liability: The creators of the backtested results disclaim any liability for losses or damages arising directly or indirectly from the use of the presented hypothetical results. The responsibility for making investment decisions based on this information lies solely with the user.

In conclusion, while backtested results can offer valuable insights into historical performance, they should be viewed with caution and not relied upon as an accurate representation of future outcomes. Always exercise prudence and seek professional advice when making investment decisions.