Risk & Hypothetical Performance Disclaimer
Educational purposes only — not financial advice
The Trade Companion, its AI assistant, and all content produced by them (chat responses, Pine Script strategies, backtests, stress tests, quality scores, Monte Carlo simulations, prop-firm pass tests and gameplans, morning briefs, and any other report or analysis) are provided for educational and informational purposes only. None of it is investment advice, a recommendation, a trade signal, or a solicitation to buy or sell any security, futures contract, or other financial instrument. L&T Kingdom Enterprises is not a registered investment adviser, broker-dealer, commodity trading advisor, or futures commission merchant, and no output of the App is personalized advice or tailored to your financial circumstances.
Trading futures, and trading in general, involves substantial risk of loss and is not suitable for every investor. You can lose more than your initial investment. Only risk capital you can afford to lose. Any trading decision you make is yours alone; consult a licensed financial professional about your specific situation.
Hypothetical and simulated performance
All backtests, stress tests, simulations, pass rates, payout projections, and gameplans shown by the App are hypothetical performance and are labeled as such. The following is the disclosure prescribed by CFTC Rule 4.41(b)(1)(i):
These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.
And the fuller statement per NFA Compliance Rule 2-29(c):
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
Past performance, real or simulated, is not indicative of future results.
Model assumptions and limitations specific to the App
- Backtests inherit TradingView's data and modeling limits (fill assumptions, data depth by plan, session handling). Reports assume the position sizes recorded in your backtest; unless stated otherwise they assume a liquid market and order fills at modeled prices. Real fills, slippage, and commissions will differ.
- Monte Carlo and evaluation simulations are statistical resamplings of a historical trade list — they describe how the past sample could have reshuffled, not the future. Trade-close granularity can understate intraday drawdown violations; where this applies, reports say so.
- AI output can be wrong. The assistant can misread charts, write buggy code, or make mistaken claims. Verify anything you intend to rely on.
- Quality scores and grades (A–F, PDT Quality Score) grade the historical evidence of a backtest sample. They are never a recommendation to trade a strategy.
About prop firms
- We are not a proprietary trading firm and are not affiliated with, endorsed by, or responsible for any prop firm's evaluations, payouts, solvency, or business practices.
- We may receive compensation when you sign up with a prop firm using our referral code (DTJ) — a paid affiliate relationship. See the Affiliate Disclosure.
- Evaluation and funded accounts at most prop firms are simulated trading environments — you are typically not trading live capital in real markets, and payouts depend on the firm's own rules and solvency.
- Prop-firm rules, pricing, drawdown limits, and payout policies change frequently and without notice; verify all terms directly with the firm before purchasing an evaluation. Rule data in reports is researched in good faith and may be outdated or wrong.
- Pass-probability and payout projections are hypothetical models built from your own backtest data against firm rules as published on the date shown in the report; they are not predictions, and no representation is made that you will pass any evaluation or receive any payout.
- Most participants do not pass evaluations or receive payouts; evaluation fees are typically non-refundable.
- Prop trading firms are generally not regulated as brokers, futures commission merchants, or exchanges in the United States.
Contact
L&T Kingdom Enterprises · tyler@thepurposedriventrader.com