Risk Disclosure

Trading U.S. exchange-listed stocks, ETFs, and cryptocurrencies involves substantial risk and is not suitable for every investor. This Risk Disclosure explains, in plain language, the material risks of using Daloop and of trading the instruments we cover. By using the Service, you acknowledge that you understand and accept these risks.

Daloop is a research and analytics service, not a registered investment adviser. Daloop is not registered as a securities broker-dealer or investment adviser with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. The information and signals provided by Daloop do not represent a recommendation to buy, sell, or hold any security or financial instrument, and are not intended as an endorsement of any security or investment. The information is generic by nature and is not personalized to the specific financial situation, objectives, or risk tolerance of any individual. Daloop does not assess your individual financial situation and does not provide individualized advice.Daloop is a research and analytics service, not a registered investment adviser. Daloop is not registered as a securities broker-dealer or investment adviser with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. The information and signals provided by Daloop do not represent a recommendation to buy, sell, or hold any security or financial instrument, and are not intended as an endorsement of any security or investment.

The information is generic by nature and is not personalized to the specific financial situation, objectives, or risk tolerance of any individual. Daloop does not assess your individual financial situation and does not provide individualized advice. You bear sole responsibility for your own investment research and decisions.

Past performance is not a guarantee of future results. The signals and alerts within Daloop's website, products, and emails are for information only and should not be relied upon for investment decisions. Any decision to act on a Daloop signal is yours alone. You should consult a licensed financial advisor before making any investment decision.

Securities and cryptocurrency prices can move sharply and unpredictably. You can lose some or all of your invested capital — including more than you deposited, in the case of leveraged products (which Daloop does not recommend). Specific risks include:

• Market risk — broad market moves can produce losses even when a strategy has been historically profitable.
• Volatility risk — sharp intra-day or overnight moves can trigger stop-losses or gap beyond expected exit prices.
• Liquidity risk — some securities may be hard to buy or sell at the price Daloop's signals assume.
• Concentration risk — holding only a few of the names on your watchlist amplifies the impact of any single adverse move.

Daloop signals are produced by quantitative strategies whose parameters were optimized on historical data and then validated on a separate, out-of-sample window. Despite this anti-curve-fit protocol (OOS Profit Factor ≥ 1.5 and IS-to-OOS Win-Rate degradation ≤ 15 percentage points), backtested results have inherent limitations:

• Past performance is not indicative of future results. A strategy that survived historical validation may still fail in live markets.
• While our backtests include a 1.2% round-trip cost estimate (0.5% commission + 0.1% slippage per side), this is a conservative estimate — actual broker costs, bid-ask spreads, and borrow costs may differ materially. See Section 4 for methodology-specific risks.
• Historical market conditions may not repeat. Regime shifts (rate cycles, regulatory changes, geopolitical events) can invalidate previously stable edges.
• Survivorship and look-ahead biases, while mitigated in our engine, cannot be entirely eliminated from any historical study.

The performance methodology described in our Terms of Service uses specific simulation assumptions that introduce risks of their own. You should understand these methodology risks before relying on any performance figure shown in the Service.

• Execution assumption. The simulation fills every signal at the next trading day's open price. Your actual broker fills may differ — sometimes materially — because of opening auctions, overnight gaps, partial fills, or order routing.
• Transaction cost estimate. The 1.2% round-trip cost (0.5% commission + 0.1% slippage per side) is an estimate. Real-world costs vary by broker, order type (market vs. limit), security liquidity, time of day, and market volatility. For illiquid small-cap equities or low-market-cap cryptocurrencies, actual slippage can exceed 1% per side and the simulation may understate real costs.
• Mark-to-market drawdowns. Drawdowns shown in the equity curve are based on daily close prices. Intraday drawdowns — the lowest price reached during a session — may be larger, sometimes substantially so, especially around earnings announcements, macroeconomic news, or overnight gap moves.
• Position sizing is illustrative. The 3% base position size, 3× portfolio leverage, stock-level 50d SMA trend filter, and 25% trailing stop are simulation parameters chosen to be representative of a leveraged swing-trading account. They are not recommendations. Actual users must select position sizes, leverage, and risk management rules appropriate to their own risk tolerance, account size, and concentration limits.
• Leverage amplifies losses. The 3× portfolio leverage means a 4% drop in unleveraged equity becomes a 12% drop in the leveraged MTM equity. While the trend filter + trailing stop are designed to keep drawdowns bounded, leverage magnifies any gap beyond the expected exit price. Real-world leveraged trading can result in losses exceeding your initial investment.
• Trailing stop gap risk. The 25% trailing stop is evaluated at daily close prices. Intraday or overnight gaps can produce fills worse than the 25% threshold — the price may gap well below the trailing-stop level before the exit can execute.
• Trend filter lag risk. The 50-day SMA trend filter is a lagging indicator. By the time a stock breaks below its 50d SMA, the downtrend has already begun — the filter may not prevent entries that occur just before a breakdown.
• Anti-curve-fit protocol has limits. The per-ticker Out-of-Sample Profit Factor ≥ 1.5 and IS-to-OOS Win-Rate degradation ≤ 15 percentage points protocol reduces overfitting risk but does not eliminate it. A strategy that passes validation can still fail in live markets, especially if market regime shifts.
• Synthetic data in sandbox. The sandbox environment uses deterministic synthetic OHLCV data (disclosed via a "Demo Data" badge). Synthetic data is generated by a deterministic random process and produces performance results that have no relationship to any real security. Synthetic results are not predictive of, and may differ materially from, results on real market data.

Daloop does not guarantee any specific outcome, return, or performance level. Any reference to win rate, profit factor, average return, or cumulative equity in the Service is historical and reflects the performance of the strategy on past data — not a promise of future results.

We do not offer refunds for losses you incur while trading on the basis of Daloop signals, and our liability for any claim is limited as described in our Terms of Service.

Daloop does not assess your individual financial situation, risk tolerance, tax position, or investment objectives. You are responsible for evaluating whether any signal or strategy is suitable for you.

Before acting on any Daloop signal, you should consult a licensed financial advisor, tax professional, or attorney who can take your full circumstances into account. The cost of professional advice is typically far smaller than the cost of a single avoidable trading mistake.

The Service depends on internet connectivity, third-party market data providers, cloud infrastructure, and software that may contain bugs or experience outages. We do not guarantee uninterrupted access to the Service, the timely delivery of alerts, or the accuracy of any price, indicator, or signal value displayed.

Signals are generated end-of-day, after market close, and reflect swing and position trading timeframes — not intra-day trades. If you attempt to act on a signal in real-time during market hours, the price you receive may differ materially from the price implied by the signal.

The Daloop Portfolio view is a paper-trading environment with a virtual $100,000 starting balance. Paper trades do not involve real money and do not reflect the emotional, liquidity, and execution realities of live trading.

A paper-trading track record is not evidence that you will be profitable in live markets. Use the paper-trading feature to learn the mechanics of the Service — not as a basis for sizing live positions.

Daloop covers 3 cryptocurrencies (BTC, ETH, SOL) alongside its stock and ETF universe. Cryptocurrency trading carries additional risks, including:

• Extreme price volatility and 24/7 markets with no daily close.
• Regulatory uncertainty in the U.S. and other jurisdictions.
• Custody, exchange, and wallet risk — digital assets can be lost or stolen.
• Thin liquidity for some assets outside the largest names.

Our signals for cryptocurrencies are generated by the same anti-curve-fit protocol as equities, but the underlying market microstructure is different and may not respond the same way to trend, momentum, or mean-reversion logic.

To the fullest extent permitted by law, Daloop is not liable for any losses, direct or indirect, arising from your use of the Service or your reliance on any signal, indicator, narrative, or analytics output. Our total liability is limited as described in our Terms of Service.

By creating an account and using the Service, you acknowledge that you have read and understood this Risk Disclosure, that you understand the risks of trading securities and cryptocurrencies, and that you alone bear responsibility for any trading decision you make.

Questions about this Risk Disclosure can be sent to:

• By email: support@daloop.com
• Company: Daloop.com