Read this
before you trade.
Trading can lose you money — sometimes quickly. Here's what can go wrong, including with backtests, automated tools and copy trading.
LAST UPDATED 1 OCTOBER 2026
01Trading is high risk
Forex, CFDs, futures and crypto are leveraged: a small price move can mean a large gain or a large loss. Most retail traders lose money trading CFDs. Depending on your broker and the product, you can lose all of your deposit — and with futures, more than your deposit.
Only trade with money you can afford to lose, and make sure you understand the product before you trade it.
02Not financial advice
PrecisionFX is not authorised by the Financial Conduct Authority to give investment advice, and nothing here is advice or a personal recommendation. Our tools and content don't know your finances, goals or experience. If you need advice, speak to an independent, authorised financial adviser.
03Past results don't predict the future
Any past result — ours, a tool's, or anyone else's — is no guarantee of future results. Markets change, and a method that worked before can stop working.
04Backtests and examples are hypothetical
Backtests show how a strategy would have traded on past data. They are not real trading, and they have real limits:
- they are made with hindsight, and the settings may have been chosen because they fitted the past;
- they can't fully show spread, slippage, commission, requotes, gaps or partial fills as they happen live;
- they don't include the pressure of real money, which changes how people trade.
Real results are usually worse than backtests. Examples and illustrations on this site (charts, sizes, calendars) are made up to explain how something works — they are not results.
05Automated tools can go wrong
Expert Advisors, strategies and trade managers place and change real orders. They can lose money because of:
- bugs, wrong settings, or a setting behaving differently on your broker;
- a lost connection, a closed or restarted platform, or a VPS going down;
- fast markets, news spikes, weekend gaps and broker symbol or contract differences.
Test every tool on a demo or simulation account first, start small, and keep an eye on it while it runs.
06Copy trading
If you copy another account's trades — including mine — losing trades are copied too. Your results will differ from the account you copy because of size, spread, timing, slippage and fees. You can stop copying at any time, but trades already open may still lose money.
07Prop-firm accounts
Our tools and the journal can help you watch prop-firm limits, but the firm's own records and rules always decide. A tool can miss a breach or react late, and a breached or failed account is your responsibility.
08Futures and NinjaTrader
Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading, and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
PrecisionFX tools are add-ons for the NinjaTrader 8 platform — NinjaTrader is the trading platform they integrate with, not a broker for them. NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer or provider of the products or services described here, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.
09CFTC Rule 4.41 — hypothetical results
CFTC Rule 4.41 — Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not 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. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
10You are in control
Every trade on your account is your decision and your responsibility — whether you place it by hand, with one of our tools, or by copying. By using PrecisionFX you confirm you understand these risks. See also our terms of use.