Risk Disclosure

1. Read this before using Grit Markets

Grit Markets is software that automates a Martingale-based trading strategy on leveraged foreign exchange and CFD markets. Trading these markets is high risk for everyone, and the Martingale approach concentrates that risk in a specific way described below. You can lose some or all of the money on the trading account that runs the software. Do not use Grit Markets with money you cannot afford to lose in full.

This document is part of our agreement with you and is written to be read, not skimmed. If anything in it is unclear, contact us before subscribing, or do not subscribe. Grit Agility Ltd would rather lose a sale than take on a customer who has not understood this page.

2. Martingale risk: the core of this disclosure

A Martingale strategy increases position size after adverse price movement, so that a partial retracement lets the whole basket of positions close at a net profit. The consequence is that exposure compounds while a trade is going wrong: with a size multiplier of two, the tenth recovery level is 512 times the initial position. Most of the time markets retrace and baskets close in profit, which produces long periods of smooth results. Occasionally the market moves persistently in one direction without a sufficient retracement. When that happens, floating losses grow geometrically, and the sequence can consume the entire account balance through an equity stop, a margin call or forced liquidation by the broker.

This is not a rare defect of Martingale systems; it is their defining trade-off. The strategy exchanges frequent small gains for infrequent, very large losses. Sustained one-directional moves occur regularly in real markets, driven by central bank decisions, economic shocks, geopolitical events or ordinary strong trends, and they do not announce themselves in advance.

Grit Markets includes configurable risk controls: a cap on recovery levels, an equity stop that closes all positions at a loss threshold you set, base lot sizing guidance and event filters. Used conservatively, these controls bound the loss from a bad sequence to a large but defined amount. They do not eliminate the risk. An equity stop still realises a real loss when it fires; price can gap through stop levels in fast markets so the realised loss can exceed the configured one; and repeated bounded losses can deplete an account over time. There is no configuration of this software that removes the possibility of losing the entire balance of the account it trades.

3. Leverage risk

Leveraged trading means you control positions much larger than the cash in your account, so small price movements produce large gains or losses relative to your balance. Leverage magnifies the Martingale effect described above: it allows larger baskets to be held open relative to your equity, which means deeper drawdowns are possible before the broker intervenes. Higher leverage does not reduce the capital a configuration truly needs; it only delays the point at which the broker stops you.

Depending on your broker and jurisdiction, losses can in some circumstances exceed your deposits. UK and EU retail accounts have negative balance protection; accounts elsewhere may not. Check your broker's terms.

4. Execution, platform and dependency risk

The software's behaviour in live markets depends on systems outside our control. Slippage, widened spreads, requotes, order rejections and broker outages can cause fills at worse prices than the strategy assumes, including on the equity stop. The software only manages positions while your MetaTrader 5 terminal is running and connected: power cuts, computer sleep, VPS failures, internet outages and platform updates all suspend its risk management while positions may remain open. Weekend and news gaps can move price across stop levels without trading in between.

You are responsible for the infrastructure the software runs on and for monitoring it. We recommend, but do not require, a reliable Windows VPS and a daily check-in during the trading week.

5. No advice, no guarantee, no regulated service

Grit Agility Ltd is a software company. We are not authorised or regulated by the Financial Conduct Authority or any other financial regulator. Nothing on our website, in our documentation, in the software's default settings, or in our support communications constitutes investment advice, a personal recommendation, or a statement that this strategy or any configuration of it is suitable for you.

Grit Markets does not guarantee profits, returns, win rates or any trading outcome, and we make no representation about future performance. Any decision to trade, and every choice of broker, instrument, capital and settings, is yours alone. If you are unsure whether leveraged trading is appropriate for your circumstances, take independent financial advice from a person authorised to give it.

6. Past and simulated performance

Past performance is not a reliable indicator of future results. This applies with particular force to Martingale strategies, whose historical results tend to look smooth precisely because the strategy defers its losses into rare, large events that a given historical window may not contain.

Where we publish or provide backtest data, it is generated in simulation: simulated results. Backtests do not predict live performance. Backtests assume idealised execution, cannot capture live spreads, slippage and outages, and are exposed to hindsight in parameter selection. The on-site simulator models worst-case arithmetic under your chosen settings; it is a sizing tool, not a forecast. Treat all such material as illustrative only.

7. Suitability and responsible use

Grit Markets is intended for people who understand leveraged trading and the specific mechanics of Martingale position sizing, accept that the entire balance of the trading account is at risk, and are able to fund that account exclusively with money whose loss would not affect their financial security. It is not suitable as a source of income, as a savings or pension vehicle, or for funds you may need at short notice.

Before trading live, we recommend that you run your configuration through the on-site simulator, operate the software on a demo account until you have observed a full recovery cycle, set the equity stop before the first live trade, and never loosen risk settings while a losing basket is open.

8. Your acknowledgement

By subscribing to Grit Markets and running the software, you acknowledge that you have read and understood this Risk Disclosure; that the software automates a high-risk Martingale strategy which can produce large drawdowns and the total loss of the balance on the account it trades; that its risk controls bound but do not eliminate that risk; that Grit Agility Ltd provides software only and gives no investment advice and no guarantee of any trading outcome; and that all trading decisions and their consequences are your own responsibility.