Important Regulatory Notice
A new study conducted by the Securities and Exchange Board of India (SEBI) has revealed that over 9 out of 10 individual traders in the equity futures and options (F&O) segment continue to incur significant losses. The aggregate losses of individual traders exceeded ₹50,000 crore in FY24 alone. Most of these traders are young, heavily invested, and often lack the sophisticated tools and capital required to manage the high volatility of derivatives markets.
Please read this entire document carefully to understand the risks involved before proceeding with any trading activities.
All investments in the stock market, including equities, futures, and options, are subject to market risks. The value of your portfolio can go down as well as up. There is no assurance or guarantee that the objectives of any investment strategy will be achieved. Market conditions, economic factors, and geopolitical events can cause sudden and significant price fluctuations.
Algorithmic trading relies on complex mathematical models, software, and technological infrastructure. It carries specific risks, including but not limited to:
- System Failures: Hardware or software malfunctions, internet connectivity issues, or API downtime can prevent orders from being executed or cause erroneous executions.
- Latency: Delays in data feeds or order transmission can result in trades being executed at prices significantly different from the expected price (slippage).
- Model Risk: The algorithms are based on historical data and theoretical assumptions that may not hold true in unprecedented market conditions.
Options are complex financial instruments and are not suitable for all investors. Buying options can result in the loss of the entire premium paid. Selling (writing) options carries unlimited risk, as the market can move significantly against the position. Wealth Shield Algo strategies often involve options selling/hedging, which requires strict margin maintenance and risk monitoring.
Past performance is not indicative of future results. Any historical performance data, backtests, or hypothetical results presented by Wealth Shield Algo are for illustrative purposes only. They do not represent actual trading and may not account for the impact of liquidity, slippage, and brokerage fees.
Wealth Shield Algo, its directors, employees, and partners do not guarantee any fixed returns, capital preservation, or specific profit targets. You acknowledge that you can lose part or all of your invested capital.
You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and risk tolerance. We strongly recommend consulting with an independent, qualified financial advisor before engaging in derivative or algorithmic trading.
Phone: +91 8010748612
Email: mhpuneconsultancy@gmail.com