chartgrade

Risk Disclosure

Last updated: 26 May 2026

YOU CAN LOSE MORE THAN YOU EXPECT. Foreign-exchange and CFD trading involves significant risk of loss. 76-86% of retail FX accounts lose money(ESMA-disclosed across major EU brokers). This disclosure is not exhaustive — only the most common risks you face are summarized here.

1. chartgrade is information, not advice

Nothing on chartgrade is investment advice. We provide analytics, backtests, calculators, and educational content. Every trading decision is yours alone. We do not know your financial situation, risk tolerance, or investment objectives, and we are not recommending any specific trade.

2. Capital at risk

Trading any leveraged product (FX, CFDs, futures, options) can result in losses that equal or exceed your initial deposit, depending on regulator-imposed protections.

  • EU residents (under ESMA): Brokers must provide negative-balance protection on retail accounts. You cannot owe the broker more than your deposit.
  • Non-EU residents: Brokers in some jurisdictions allow accounts to go negative. You may owe additional money beyond your initial deposit.

3. Leverage amplifies BOTH gains and losses

FX major pairs in the EU are capped at 30:1 leverage. A 3.33% adverse move wipes out your account. Such moves happen regularly during:

  • Central bank decisions (FOMC, ECB, BoJ)
  • High-impact data releases (NFP, CPI, GDP)
  • Geopolitical shocks (war, sanctions, elections)
  • Unscheduled central-bank interventions (e.g., 2015 SNB un-peg moved EUR/CHF 20% in 5 minutes)
  • Weekend gaps and thin-liquidity periods

4. Past performance is not a guarantee

Backtests on chartgrade use real historical data with realistic costs and the Deflated Sharpe Ratio penalty (Bailey & López de Prado 2014). Even so, past performance of any strategy does not guarantee future results. Markets are non-stationary — what worked for 15 years may stop working tomorrow.

5. The math of typical retail outcomes

Based on ESMA disclosures and academic studies:

  • 76-86% of retail FX accounts lose money over a 12-month period
  • The median annual return for retail FX is negative
  • Day traders fare worse than swing/position traders; one academic study of 1,600 Brazilian day traders found 97% lost money over 1 year
  • Even profitable retail traders typically average 5-15% annual returns, not the "30-100%" that vendors promise

6. Specific risks of chartgrade features

Multi-layer conviction score

Our 12-layer score combines rate diffs, vol skew, positioning, political risk, etc. It is a research synthesis — not a guarantee. A high score can lose; a low score can win. Conviction is not certainty.

Buy-now score

The 0-10 buy-now rating reflects model confidence in the SETUP, not in the outcome. Even setups rated 10/10 lose regularly.

Reference stop loss and take profit

ATR-based reference levels assume normal volatility. During news events, spreads widen and stops slip — you may exit at a worse price than the level shown.

Position sizer

Sizing math is correct under stated assumptions (broker minimums, ESMA leverage caps). Your actual broker may differ. ALWAYS verify the calculated lot size in your broker platform before placing an order.

7. You should not trade if

  • You cannot afford to lose the entire amount you deposit
  • You are borrowing money to trade
  • You do not fully understand how leverage and margin work
  • You have no plan for handling losses
  • You are emotionally affected (illness, life stress, intoxication, sleep deprivation)

8. Tax

Trading profits and losses are taxable events in most jurisdictions. chartgrade does not provide tax advice. Consult a qualified tax professional in your country. Keep records of all trades — your journal in chartgrade is a tool, not a tax document.

9. Acknowledgement

By using chartgrade you acknowledge that:

  • You have read this Risk Disclosure
  • You understand FX/CFD trading carries the risk of substantial loss
  • You alone are responsible for your trading decisions
  • chartgrade is not a broker, advisor, or fiduciary

10. Where to get real help if trading is causing harm

If you suspect you have a gambling problem related to trading, contact: