Market risk
Cryptocurrency prices are volatile and can move sharply in either direction. Trading crypto involves substantial risk of loss, up to and including your entire balance. No strategy, automated or manual, removes this risk. Past performance — including any backtest or simulation shown on this site — does not indicate future results.
Leverage
Leverage multiplies both gains and losses. A leveraged position can lose more than its initial margin, and can be liquidated faster than an unleveraged one during a fast move. If you enable leverage on a bot, you are choosing a faster path to both outcomes.
Automation and execution risk
Automation does not reduce market risk. What it removes is hesitation — and hesitation is sometimes the only thing standing between a losing trade and a losing run. A bot will execute its rules exactly, including during a move a human would have paused on.
- Software bugs — in a strategy, or in the platform — can cause unintended orders.
- Exchange outages, maintenance windows, and API rate limits can delay or block orders.
- Slippage means the fill price can differ from the price a strategy expected.
- Funding rates on perpetual futures can erode or reverse an otherwise profitable position.
The limits of backtesting
A backtest tells you how a strategy would have performed on historical data. It does not tell you how it will perform going forward.
- Overfitting — a strategy tuned until it fits the past, not the market.
- Survivorship — testing only on assets or periods that happened to work out.
- Costs — fees, spread, and slippage are easy to underestimate in a simulation.
- Hold-out — even a strategy validated on data it was never shown can still fail once live constraints (latency, liquidity, exchange behavior) enter the picture.
Every figure we publish, including in the Edge Teardowns, is backtested or simulated unless it explicitly says otherwise.
What FreqEdge does and does not do
FreqEdge is software. It runs bots you configure, on infrastructure you control, using your own exchange keys.
- We do not manage your money or hold custody of your funds.
- We do not give financial advice or recommend trades.
- We do not promise, guarantee, or imply any return.
- We do not see or store your exchange API keys — they live only on your own server.
If your server or your exchange goes down
A bot cannot act while its server is down or while the exchange it trades on is unreachable. An open position does not pause with it — stop-losses, take profits, and any other exchange-side order continue to depend on the exchange itself, not on your bot being online. We monitor server health, but we cannot guarantee an exchange's uptime, and an outage on either side can leave a position running without the bot able to manage it.
This is not advice
Nothing on this site, in the product, or in any communication from FreqEdge constitutes financial, investment, tax, or legal advice. You are solely responsible for your own trading decisions, for understanding the strategies you run, and for complying with the laws that apply to you.
Questions about this disclosure? See our legal notice or contact legal@freqedge.io.