PART 6: SYSTEM RISKS & LIMITATIONS
6.1 Disclaimer
Essential — Please learn rigorously.
Mirage Buying and selling System (MTS) is a technical evaluation assist software. It’s NOT an automatic buying and selling system and it’s NOT funding recommendation.
| What it’s best to perceive | Clarification |
|---|---|
| No revenue assure | No buying and selling system can assure a 100% win fee. |
| Previous efficiency ≠ future outcomes | Backtest outcomes don’t symbolize actual buying and selling efficiency. |
| The ultimate determination is yours | MTS gives info solely; you resolve when to enter/exit trades. |
| Threat of capital loss | Foreign exchange/CFD buying and selling may end up in dropping your complete capital. |
Authorized discover:
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This product will not be monetary, funding, or authorized recommendation.
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Customers are solely accountable for their very own buying and selling choices.
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Don’t commerce with cash you can not afford to lose.
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Seek the advice of a certified monetary skilled earlier than buying and selling.
6.2 Technical limitations of the system
Timeframe limitations
| Timeframe | Reliability | Notes |
|---|---|---|
| M1, M5 | Low | Excessive noise, extra false alerts. |
| M15, M30 | Medium | Appropriate for skilled scalpers. |
| H1, H4 | Excessive | Beneficial for many merchants. |
| D1, W1 | Very excessive | Fewer alerts, however larger high quality. |
Image/instrument limitations
Works finest on:
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XAUUSD (Gold)
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Main pairs: EURUSD, GBPUSD, USDJPY
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Plass Cross: EURJPY, GBPJPY
Use warning on:
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Unique pairs (low liquidity)
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Crypto (excessive volatility)
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Shares/Indices (completely different market construction)
System useful resource limitations
| Part | Restrict | Influence if exceeded |
|---|---|---|
| MTF Scanner symbols | As much as 150 | Lag, timeouts. |
| MTF Scanner timeframes | 7 TF | Longer scan time. |
| Indicators on chart | ~500 | Efficiency slowdown doable. |
| Dashboard rows | 50 | Not all rows will probably be displayed. |
6.3 Market dangers
Unpredictable dangers
| Threat sort | Description | Can MTS deal with it? |
|---|---|---|
| Sudden information | NFP, FOMC, warfare, and so forth. | NO |
| Flash crash | Sudden worth collapse | NO |
| Weekend gaps | Market opens removed from Friday shut | NO |
| Unfold widening | Throughout low liquidity | NO |
| Slippage | Stuffed worth differs from requested worth | NO |
Occasions to keep away from buying and selling
| Time | Motive |
|---|---|
| Earlier than main information | NFP, CPI, FOMC may cause sharp volatility. |
| Late Friday session | Wider spreads, low liquidity. |
| Early Monday session | Gaps, unstable volatility. |
| Holidays | Extraordinarily low liquidity. |
6.4 Limitations of the liquidity-trap sample
When the sample might carry out poorly
| State of affairs | Clarification |
|---|---|
| Prolonged sideways market | Many consecutive false breakouts. |
| Extraordinarily sturdy development | An actual breakout happens (not a false breakout). |
| Volatility too low | Sample is unclear. |
| Volatility too excessive | An excessive amount of noise. |
Reasonable win fee
Essential: No sample has a 100% win fee.
| Situations | Anticipated win fee |
|---|---|
| No filters | 40–50% |
| With High quality Filter | 50–60% |
| Full filters + finest situations | 55–65% |
Word: The numbers above are estimates based mostly on backtesting and don’t assure future outcomes.
Patterns NOT detected
MTS does NOT detect the next:
MTS ONLY detects: Inside Bar False Breakout (liquidity-trap sample).
6.5 Limitations of the filters
High quality Filter
| Professionals | Limitations |
|---|---|
| Filters out unclear patterns | Might miss good alerts. |
| Based mostly on candle construction | Doesn’t consider broader context. |
Excessive Zone Filter
| Professionals | Limitations |
|---|---|
| Avoids overbought/oversold zones | In sturdy traits, worth might preserve transferring additional. |
| Based mostly on Donchian/ATR logic | Not the identical as RSI/Stochastic. |
Reverse Filter
| Professionals | Limitations |
|---|---|
| Avoids conflicting alerts | Might miss true reversals. |
| Retains consistency | Can block legitimate alerts. |
6.6 Dangers when utilizing with an EA
Technical dangers
| Threat | Description | Mitigation |
|---|---|---|
| Connection loss | EA doesn’t obtain alerts | Use VPS, backup connection. |
| Buffer delay | Buffer knowledge might lag by 1 bar | Use “look forward to affirmation” logic. |
| Incorrect lot measurement | Incorrect place sizing | Validate earlier than buying and selling. |
| A number of orders | Opens a number of trades directly | Use a novel Magic Quantity. |
Operational dangers
| Threat | Description |
|---|---|
| No human intervention | EA might preserve buying and selling throughout unhealthy information. |
| Over-optimization | Works in backtest however fails stay. |
| Dealer points | Requotes, rejected orders. |
Suggestions when utilizing an EA:
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Check on a demo account for at the very least 1 month earlier than going stay.
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Restrict most day by day danger (e.g., 3% of the account).
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Add a cease mechanism when drawdown is just too excessive.
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Monitor often—don’t “set and overlook”.
6.7 Threat administration suggestions
Golden guidelines
| Rule | Particulars |
|---|---|
| 1% Rule | Don’t danger greater than 1–2% of your account per commerce. |
| 3% Day by day | Cease buying and selling should you lose 3% in a day. |
| 10% Weekly | Cease and overview should you lose 10% in per week. |
Place measurement method
Place Measurement = (Account × Threat%) / (SL pips × Pip Worth)
Instance:
Place Measurement = $100 / (50 × $10) = 0.20 lot
Pre-trade guidelines
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Did you test immediately’s information?
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Is the minimal Threat/Reward at the very least 1:2?
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Did you calculate the right lot measurement?
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Are SL and TP set?
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Are you staying inside 2% danger?
6.8 What the system can not do
MTS is NOT
| MTS will not be | Clarification |
|---|---|
| An automatic buying and selling robotic | MTS is an indicator; it doesn’t open/shut trades routinely. |
| A information prediction system | It can not know when main information will occur. |
| Basic evaluation | It depends on worth motion solely. |
| Computerized cash administration | You should calculate lot measurement your self. |
| Loss insurance coverage | There isn’t a strategy to keep away from losses 100%. |
MTS can not
| Can’t | Motive |
|---|---|
| Assure each commerce wins | No system can try this. |
| Predict with 100% accuracy | Markets all the time comprise randomness. |
| Exchange expertise | You should perceive market context. |
| Work offline | Requires MT5 and real-time knowledge. |
Help contact
In case you have technical points or questions: