Risk Disclosure Statement
INTRODUCTION
Welcome to MYALGOMATE TECHNOLOGIES LLP.
MYALGOMATE TECHNOLOGIES LLP provides a platform to create, and backtest trading algorithms.
Creating strategy is a process to input entry and exit conditions involving technical indicators, stop loss percentage, take profit percentage, instrument, etc and form a trading strategy, hereafter referred to as “trading Algo” or “Algo” or “algorithms”.
Backtesting is the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risks any actual capital. A trader can simulate the trading of a strategy over an appropriate period of time and analyze the results for the levels of profitability and risk. MYALGOMATE TECHNOLOGIES LLP strives to give you accurate information on your trading strategies and your algorithms, however, in case of any inconsistency, the company cannot be held liable in case of any monetary, mental, or loss in any form.
Using MYALGOMATE TECHNOLOGIES LLP’s Services, including its deploy services, presents several different types of risk. We have summarized these below. You should read and understand these risks before you use any of MYALGOMATE TECHNOLOGIES LLP’s services.
1. RISKS
The risks that can arise from using MYALGOMATE TECHNOLOGIES LLP’s Site and Services fall into two broad categories:
1. Risks inherent generally in using Internet-based technology;
2. Risks inherent in creating, backtesting;
ANY PERMUTATION OR COMBINATION OF THE OCCURRENCE OF THE POTENTIAL EVENTS THAT DEFINE THE RISKS DESCRIBED IN THIS DISCLOSURE STATEMENTS CAN LEAD TO A TOTAL OR PARTIAL LOSS OF OPERABILITY, RESPONSIVENESS, FUNCTIONALITY, AND FEATURES THAT COULD MATERIALLY AND ADVERSELY AFFECT YOUR USE OF MYALGOMATE TECHNOLOGIES LLP
1. Risks of Using Internet-based Technology – Generally
The Internet-related technological risks arising from using MYALGOMATE TECHNOLOGIES LLP’s Site and Services to write, test, analyze, and run trading algorithms and related trading strategies fall into three categories:
(a) risks related to MYALGOMATE TECHNOLOGIES LLP’s software;
(b) risks related to MYALGOMATE TECHNOLOGIES LLP’s computing and communications infrastructure; and
(c) risks related to your software, hardware, and Internet connectivity.
a. MYALGOMATE TECHNOLOGIES LLP’s software might fail or work properly.
i. All software is subject to inadvertent programming errors and bugs embedded in the code comprising that software. Any of these errors and bugs can cause the software in which they are located to fail or not work properly. The applications software used to operate MYALGOMATE TECHNOLOGIES LLP’s Site and Services depends is subject to this risk. Despite testing and ongoing monitoring and maintenance, inadvertent errors and bugs may still cause a failure in MYALGOMATE TECHNOLOGIES LLP’s applications software.
ii. We may update or revise our applications software in ways that cause some of its functionality or features to be lost or diminished. Any such loss or diminution could make MYALGOMATE TECHNOLOGIES LLP less valuable to you, cause certain functions and features in your algorithms to fail, and require you to change your algorithms and related trading strategies.
b. MYALGOMATE TECHNOLOGIES LLP’s computing and communications infrastructure may fail.
The operation of MYALGOMATE TECHNOLOGIES LLP’s Site and Services depend heavily on our infrastructure of computing and communications systems. The operation of this infrastructure is subject to several risks:
i. Any or all of the systems comprising our infrastructure could entirely or partially fail, function erratically, or function very slowly (thereby leading to latency, i.e., delays in receipt of and response to user requests).
ii. We may inadvertently cause a system failure during planned or unplanned system maintenance.
iii. We may undertake software upgrades, either planned or unplanned, that take longer to implement or that cause your computer system or Internet connectivity to fail.
iv. We may change or remove functions and features whose change or removal causes your system to fail, function erratically, or function very slowly.
c. Your computer system and your Internet connectivity may fail.
Any of the components of your computer system and/or your Internet connectivity could fail entirely, function erratically, or function very slowly. The result of any of these occurrences could make it difficult or impossible for you to access the MYALGOMATE TECHNOLOGIES LLP Site or use the MYALGOMATE TECHNOLOGIES LLP Services.
You may incur losses (or fail to gain profits) while trading securities. You should discuss the risks of trading with the broker-dealer where you maintain an account or other investment professional. MYALGOMATE TECHNOLOGIES LLP provides you only with trading technology and can provide no investment, financial, regulatory, tax, or legal advice.
2. Risks in Create, and Backtest Algos (Algorithms)
Creating and backtesting trading algorithms is subject to several risks, any of which can cause your algorithms to not function as you had intended or fail to achieve one or more of the objectives of your algorithms. Algorithmic trading is rapidly changing as a practice and as an industry. Models of markets used to write and test trading algorithms are inherently limited and often fail to perform as expected. In addition, trading algorithms are implemented in software programming code, and no matter how well designed and thoroughly tested, any such code can have logical errors and bugs that cause the algorithms to malfunction or suggest trades that, if executed, would result in losses. It is your obligation to thoroughly and appropriately test any trading algorithm before you deploy it and to continually monitor the operation of any deployed trading algorithm to ensure it is running properly and in compliance with any applicable rules
a. Your algorithm may be designed on the basis of an incorrect understanding of technical indicators which may not work as expected.
b. Your algorithm may contain logical errors in the way you understand the indicators and comparators.
c. Errors may exist in the data used for testing your algorithm or the applicable model of the market.
d. Your algorithm might appear to succeed in a backtesting environment using historical data,
e. Your algorithm might appear to succeed with some data sources, but fail when using other data sources in our system.
f. Your algorithm may not achieve the returns you anticipate. There are no guarantees, or even expectations, that can be made about the future behavior of an algorithm.
g. Backtesting Cannot Assure Actual Results.
It is not possible for a computer model to truly predict what might have happened if an algorithm-based trading strategy was in play in a live trading environment. For example, the implementation of such a strategy can itself have an impact on the market, and the model may fail to account for real-life factors that impact the model. Moreover, the model may fail to account for execution costs including broker commissions, fees, and trading slippage.
A promising model result does not necessarily predict a successful strategy. A backtest might be over-fitted to past data, and fail when the strategy is applied to new, live data. Your algorithm might not handle market conditions that cannot be reasonably anticipated, i.e., a “flash crash” or an exchange outage. These market conditions, by definition, will not have been tested.
h.The relevant market might fail or behave unexpectedly. Market centers in which you seeking to implement your trading strategy may fail or behave incorrectly because of technical reasons relating to infrastructure, connectivity, and similar factors.
Your algorithm might suffer from adverse market conditions. Those conditions can include a lack of liquidity and abrupt and unwarranted price swings. Also possible are late market openings, early market closings, market chaos, and mid-day trading pauses, and other such disruptive events.
i. You may receive incorrect information, or be unable to get information, about your orders, your positions, or market conditions. Incorrect actions may be taken, or corrective actions may not be taken, because of inaccurate or missing information. In addition, you may be unable to terminate or edit your algorithm.
k. Malicious and criminal activities might cause your algorithms and strategy to fail.
All computers and networks are subject to malicious “hacking” attacks and criminal activities designed to misappropriate intellectual property, compromise personally identifiable information, steal funds, or any combination of such purposes. These attacks might be attacks on a target of opportunity or specifically targeted. Any such attack could cause the system so attacked to function improperly or not at all and could result in the misappropriation of your intellectual property, the compromise of your personally identifiable information and personal financial information, the theft of your funds, and can cause your Algo to be misbehave, malfunction or behave erratically. MYALGOMATE TECHNOLOGIES LLP cannot be held liable and no legal action can be initiated against MYALGOMATE TECHNOLOGIES LLP, in any case of an external attack by a malicious entity that leads to disclosure of personal data, algorithms, or any other data a user has created, submitted or stored with MYALGOMATE TECHNOLOGIES LLP. MYALGOMATE TECHNOLOGIES LLP, in any case, is held liable to any loss of intellectual property, content, harm to reputation, damage, etc.
