Risk Disclosure
The real risks of trading, and what each Flow Signals signal type does and does not mean.
Trading stocks, options, and other securities involves substantial risk and is not suitable for everyone. You can lose some or all of the money you put in, and in some cases more. Only trade with money you can afford to lose. If you are unsure, speak with a licensed financial professional before you act.
This Risk Disclosure explains the risks of using Flow Signals and what each signal type does and does not mean. It is part of our Terms of Service. Please read it in full before you rely on anything in the Service.
1. Signals are educational, not advice#
Flow Signals provides market data driven signal alerts and a simulated portfolio dashboard for information and education. Signals are generated by our signal model from market data. They are not financial advice, not a recommendation to buy or sell anything, and not tailored to your situation. We are not a registered investment adviser, broker dealer, futures commission merchant, or commodity trading adviser, and we are not your fiduciary.
2. No guarantee of results#
No signal, model, or strategy can predict the market. We do not promise that any signal will be accurate, profitable, or timely. Markets can move fast and against you. Any decision you make based on the Service is your own, and you are solely responsible for the outcome.
3. What the four signal types mean#
Every signal falls into one of four categories. Each one is a model observation about market data, not a promise about what will happen next.
Bullish
The model has detected conditions in the market data that it associates with potential upside. It is an observation about the current setup. It is not a guarantee that price will rise.
Bearish
The model has detected conditions in the market data that it associates with potential downside. It is an observation about the current setup. It is not a guarantee that price will fall.
Extreme Bullish
The market has extended beyond a prior signal zone to the upside. The model flags this as a possible reversal area. This is a model detected possibility only. It does not guarantee that a reversal will happen, when it might happen, or that any trade would be profitable.
Extreme Bearish
The market has extended beyond a prior signal zone to the downside. The model flags this as a possible reversal area. As with Extreme Bullish, this is a model detected possibility only, with no guarantee of a reversal, its timing, its direction, or any profit.
An Extreme signal is not a signal to trade, and it is not a prediction that the market will turn. It simply marks that the market has moved past a prior zone that the model watches. Reversals may not happen, or may happen later or sooner than expected.
4. Simulated performance is hypothetical#
Each signal maps to a simulated options trade for illustration only. The portfolio value, total return, and simulated capital shown on the dashboard are hypothetical model results, not a real brokerage account. No real orders are placed and no real money changes hands in the dashboard. Simulated and hypothetical results have real limits. They benefit from hindsight, they do not account for the emotion of live trading, and they may not include the full cost of real fills, fees, or slippage. Past and simulated performance do not predict future results.
5. Options carry extra risk#
Options are complex and can lose value quickly, including going to zero, because of price moves, time decay, and changes in volatility. Some options strategies can create obligations or losses greater than the amount you put in. Make sure you fully understand any strategy before you use it, and read the standardized options risk materials your broker provides.
6. Data and technology risk#
The Service depends on market data and technology that can be delayed, incomplete, or wrong. Alerts may be late, missed, or duplicated. Outages, bugs, or third party failures can affect the Service. Do not rely on the Service as your only source of information.
7. Your responsibility#
You alone decide whether and how to trade. Consider your own goals, experience, and risk tolerance, do your own research, and consider advice from a licensed professional. By using the Service you accept these risks and agree that Flow Signals is not responsible for your trading results.
8. Questions#
If anything here is unclear, email [email protected] before you rely on the Service.
Questions about this policy?
Email us at [email protected].
We read every message and reply as soon as we can.