Trading and investing involve substantial risk. This page explains key risks relevant to using TrendAviv research and signals.
1. No model guarantee
Markets are uncertain. Model outputs can be wrong, and profitable periods can be followed by losses.
Any examples or historical references are not does not guarantee of future performance.
2. Model risk
Quant models are approximations. They may fail in new regimes, during shocks, or when relationships between assets change.
Signals are probabilistic, not deterministic. Confidence intervals do not does not guarantee coverage in extreme events.
3. Data risk
Inputs may be delayed, incomplete, or revised. Market data can contain errors. News and sentiment signals are noisy by nature.
4. Execution and liquidity risk
Even if a signal is correct, execution matters. Slippage, spreads, fees, and liquidity constraints can turn a theoretical edge into a loss.
5. Leverage and derivatives
Leverage magnifies both gains and losses and can lead to rapid losses beyond your initial margin.
Derivatives (options, futures, CFDs) carry additional risks such as volatility spikes and gap moves.
6. Currency risk (ILS FX)
FX markets can move quickly due to macro data, policy statements, geopolitical events, and positioning.
Consider sizing and scenario risk especially around known event windows.
7. Use a risk-first workflow
If you choose to trade, consider using predefined exits, small position sizing, diversification, and strict risk limits.
Do not risk money you cannot afford to lose.