Risk Disclosure | Tradetron Inc.

Please read this before you connect a broker or run a strategy with real money. It does not list every risk. Tradetron is software, not a broker-dealer or investment adviser, and nothing on Tradetron is a recommendation to trade.

1. Trading can lose money, sometimes more than you put in

Trading stocks, ETFs, options, futures and crypto involves substantial risk of loss and is not suitable for everyone. You can lose all the money you put into a trade, and with margin, short options or futures you can lose more than that. Trade only with money you can afford to lose, and talk to a licensed financial professional if you are unsure whether trading suits you.

2. Options

Before trading options, read Characteristics and Risks of Standardized Options, the options disclosure document your broker must give you.
A bought option can expire worthless and lose its whole cost. A sold (short) option can lose far more than the premium received; an uncovered short call has no limit on its loss.
Options on ETFs and stocks (such as SPY and QQQ) can be exercised early and are settled in shares, so a short option can be assigned and leave you with a stock position you did not plan for, possibly overnight. Index options (such as SPX, NDX and XSP) are cash-settled.
Multi-leg strategies can be filled one leg at a time, leaving you briefly exposed. Wide bid-ask spreads and thin markets can make fills much worse than the price you see.

3. Zero-days-to-expiration (0DTE) options

0DTE options expire the same day they are traded. Their prices can swing sharply on small moves in the underlying, time decay is fastest on the last day, and liquidity can thin out near the close. A position can go from a profit to a total loss in minutes. If an exit is delayed, rejected or not sent near expiry (for example, because of a broker or connection outage), you can be left with a large loss or an exercised or assigned position. Automation does not remove these risks; it can make them happen faster.

4. Margin and leverage

Trading on margin magnifies gains and losses. Your broker can raise margin requirements, issue margin calls and sell your positions without asking you first. Day-trading rules and options approval levels are set and enforced by your broker; a strategy that breaks them can have orders rejected or your account restricted.

5. Automated trading

Your rules run exactly as written. A mistake in a strategy (a wrong quantity, a missing exit, a condition that keeps firing) can place unintended or repeated orders quickly.
Technology fails. Market data can be late or wrong; Tradetron, your broker, a connection provider, a cloud provider or the internet can go down; broker sessions and tokens can expire and need you to sign in again; orders can be rejected, delayed, partly filled or duplicated.
Prices move. Market orders in fast markets can fill far from the last price (slippage), and limit orders may not fill at all.
You stay in charge. Monitor your strategies and your broker account, keep enough funds, and know how to exit every position directly at your broker if Tradetron is unavailable.

6. Backtests, paper trading and other hypothetical results

Backtests replay a strategy on historical data. They can be wrong about what would have happened: fills, slippage, liquidity, fees and data gaps are estimated, and it is easy to fit a strategy to the past so that it looks better than it will trade (over-fitting). A backtest's result depends on the costs it assumes; check that commissions, fees and slippage are included, and expect real costs to be at least as high. Paper trading and Live Offline modes simulate fills at prices that a real order may not get. Look at the losing trades and the worst drawdown, not only the total.

Hypothetical performance notice. 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 profits or losses similar to those shown. Past performance does not guarantee future results.

7. How your orders are executed

Tradetron sends your strategy's orders to your broker. Your broker decides how and where they are executed, can reject or cancel them, and may route them to market makers or venues that pay it for order flow. Trading can be halted, and price bands and circuit breakers can stop or delay fills. Extended-hours sessions have less liquidity and wider spreads. Your broker's records are the official record of your orders, fills and positions; what Tradetron shows can lag behind or differ from them.

8. Marketplace strategies and AI-built strategies

Strategies in the marketplace are made by other users, not by Tradetron, and we do not check whether they suit you or whether their creators are registered with any regulator. A creator's past results, backtested or live, do not predict yours. Strategies drafted by our AI assistants can contain mistakes; review and backtest them before you trade them.

9. Taxes

Frequent trading can create complex tax results, including short-term gains and wash sales. Your broker issues your tax forms. Ask a tax professional about your situation.

Contact us

Tradetron Inc., a Delaware corporation
Mailing address: 105 N 1st St #429, San Jose, CA 95103
Registered office: 919 N Market Street, #950, Wilmington, DE 19801
Help with your account or billing: support@tradetron.tech
Legal notices: contact@tradetron.tech