Wavqu Risk Disclosure

Last updated: 25 October 2026
Version: 1.0

Please read this before you subscribe. It explains, in plain English, how Wavqu trades and how you can lose money. It is about this strategy, not trading in general.

The short version

• You can lose a large part of your account. You could lose all of it.
• Wavqu uses a grid (averaging) strategy. When the price moves against it, it adds more trades, each bigger than the last.
• There is no stop loss on each trade. Losing trades are held, not closed, while the strategy waits for the price to come back.
• A safety net closes all of Wavqu's trades if the loss reaches 32% of your balance, or if your equity falls 45% below its highest point. These are not small numbers. They are the losses the strategy is built to accept.
• Wavqu needs our server to be online. If it is not, Wavqu cannot open or adjust trades.
• Bitcoin moves fast and can jump in price. Losses can go beyond the safety levels.
• The Ultimate plan removes the deposit limit only. It uses the same strategy and risk controls. The more you deposit, the more money you can lose.
• We do not guarantee any profit. Past results do not predict future results.
• Only use money you can afford to lose.

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Before you can pay, by card or with Bitcoin, you must tick a box next to this statement. We record the date and time you ticked it.

I understand that automated trading can lose money, that past results do not guarantee future results, and that Wavqu provides software, not investment advice.

1. How the strategy works

Wavqu trades one market: BTCUSD, the price of bitcoin in US dollars.

1. When certain price conditions are met, Wavqu opens a trade (a buy or a sell).
2. If the price moves the right way, the trade closes at a small profit target (its "take-profit").
3. If the price moves the wrong way, Wavqu does not close the trade at a loss. Instead, after the price has moved a set distance, it opens another trade in the same direction, slightly larger than the one before.
4. It can keep adding trades, each larger than the last, up to a set maximum number.
5. All the trades in the group (the "basket") share one profit target. Because the later trades are larger and at better prices, the price only needs to come back part of the way for the whole basket to close in profit.

This is called a grid or averaging strategy. Increasing the size of each new trade is a mild form of martingale.

Why this is risky

Grid strategies often win many small amounts and then, now and then, lose a large amount. This pattern can look very good for months, then give back a large part of the gains in one bad run.

The danger is a strong move in one direction that does not come back. Each added trade is larger, so the loss grows faster than the price moves. The longer the move continues, the bigger the loss.

2. No stop loss on each trade

Many trading systems close a losing trade at a set loss (a "stop loss"). Wavqu does not. Individual trades stay open while they are losing.

The only things that close a losing basket are:

• the price coming back far enough for the basket to reach its shared profit target;
• the server's risk rules; or
• the safety net described in section 3.

Your broker may also close trades if you run out of margin. See section 6.

3. The safety net, and what it really means

Wavqu has two safety thresholds. They are built into the EA on your computer or VPS, and also run on our server.

1. Basket loss 32%. If the open loss on Wavqu's trades reaches 32% of your account balance, all of Wavqu's trades are closed.
2. Equity drawdown 45%. If your account equity falls 45% below the highest equity the EA has recorded, all of Wavqu's trades are closed. After this, the server pauses new trading for a period.

What these numbers mean in money

These amounts are in your account's currency. They are examples, not limits.

Important points

• The safety net does not prevent losses. It locks them in. When it triggers, the loss is real and final.
• It can trigger more than once. Two 32% losses in a row would take a 2,000 balance to about 1,360, then to about 925. That is a loss of more than half the account.
• Losses can be bigger than 32% or 45%. Bitcoin's price can jump ("gap"). Your broker may close trades at a worse price than expected ("slippage"). Spreads often widen when markets are fast.
• It only covers Wavqu's trades. It does not close trades you place yourself or trades from other EAs. But those trades still affect your balance and equity, and so affect when the thresholds are reached.
• It only works while MT4 is running and the EA is attached. If your computer or VPS is off, or you removed the EA, the safety net is not running. Only your broker's margin rules would then close trades.

4. Hedge trades

In some losing situations, the strategy opens a trade in the opposite direction to the basket. This is a "hedge". The hedge can be larger than the basket it protects.

The aim is to recover from a losing basket. But if the price turns sharply back after the hedge opens, the hedge itself can lose money. A hedge can make a loss bigger, not smaller.

Because of hedging, your broker account must allow you to hold a buy and a sell at the same time. "Netting" accounts are not compatible.

Do not place manual trades on the account the strategy runs on. A manual position shares the account's margin, so it can bring the broker's margin level or the strategy's equity protection to the point where positions are closed early, and it counts towards your deposit allowance. Use a separate account for manual trading.

5. Dependence on our server

Wavqu's strategy runs on our server, not on your computer. The EA in your MT4 only follows our server's instructions and runs the safety net.

If our server is offline, slow, or cannot be reached from your MT4:

• no new trades open, including the extra grid trades the strategy would normally add;
• no hedge trades open;
• profit targets are not adjusted;
• the server's own risk rules do not run. Only the local safety net does.

Your open trades keep their last profit targets and can still close there. But a losing basket may stay open longer, and may end differently, than if the server had been online.

The same happens if:

• your internet connection or VPS fails;
• MT4 is closed or loses its connection to your broker;
• the server address is not on MT4's list of allowed web addresses;
• your subscription ends.

Deposit-limit pauses are different

On Starter, Standard and Pro, Wavqu pauses new baskets if:

• a deposit takes your capital at risk above your plan's deposit limit; or
• the Wavqu EA cannot report your funding history, for example because it is out of date, the history is not reported yet, or the history is incomplete or does not reconcile.

During this kind of pause, existing baskets continue normal management. They can still add grid trades and hedges, and their profit targets are still adjusted. So a pause does not reduce the risk of a basket that is already open. That risk continues until the basket closes. New baskets can start again once the cause is fixed. The strategy decides when the next basket starts.

Ultimate does not pause new baskets for deposits or deposit reporting. See section 9.

6. Broker, leverage and margin risk

Wavqu trades on your broker account. Your broker's rules matter a great deal.

• Leverage. Leverage lets you open trades much larger than your deposit. It makes both gains and losses bigger. The strategy's later trades are larger, so they need more margin.
• Margin calls and stop-out. If your account does not have enough margin, your broker may close some or all trades automatically. This can happen before Wavqu's safety net, at a worse moment and price. Find out your broker's stop-out level.
• Losing more than you deposit. Some brokers protect you from a negative balance. Others do not. If yours does not, you could end up owing the broker money.
• Costs. Spreads, commissions and overnight charges ("swap") reduce your results. Overnight charges on bitcoin can be high. Baskets that stay open for days pay them every night.
• Execution. Your broker may fill orders at worse prices than expected, reject orders, or stop trading during maintenance or fast markets.
• Broker failure. If your broker goes out of business or holds your money unsafely, you could lose it. Wavqu has no control over this and never holds your money.
• Regulation. BTCUSD on MT4 is usually a "contract for difference" (CFD). Some countries restrict or ban the sale of crypto CFDs to retail customers. Complaint and compensation schemes differ between countries, and may not cover your broker. Check who regulates your broker and what protection applies to you.

7. Bitcoin is very volatile

• The price of bitcoin can rise or fall by 10% or more in a single day, and sometimes much more.
• It can move sharply at weekends, at night, and on news.
• Some brokers trade bitcoin at weekends and some do not. Prices can jump when trading restarts.
• A long, strong move in one direction is exactly the situation where a grid strategy loses most.

8. Small accounts and fees

• Brokers have a minimum trade size. On a small balance, the smallest allowed trade may be larger, compared with your balance, than the strategy would ideally use. That makes each trade riskier for a small account.
• Your subscription fee is a cost that the strategy must earn back before you make any profit. For example, the Starter fee of $100 a month is about 5% of a 2,000 balance every month (before any currency difference). On a smaller balance, the fee is a larger share.
• Plan deposit limits (for example $2,000, or 2,000 in GBP or EUR, on Starter) apply to your capital at risk: your deposits, minus your withdrawals, minus any net realised trading loss. These are account eligibility limits, not recommended investment amounts. A higher limit is not a reason to deposit more. Ultimate has no deposit limit. That is not a reason to deposit more either (section 9).
• Realised trading losses increase your available deposit allowance. That is not a suggestion to top up your account. Depositing again after a loss puts more of your money at risk.
• The figures on your dashboard do not include your subscription fee.
• Your subscription fee is not refunded if the strategy loses money. All subscription purchases are final. Trading losses do not entitle you to a refund. See the Subscription and Refund Policy.

9. Large deposits and the Ultimate plan

Ultimate has an unlimited deposit allowance. Please understand what that does and does not mean.

• "Unlimited" refers only to the deposit allowance. It does not mean unlimited trading exposure. It does not remove any risk control.
• The strategy is the same. Ultimate uses the same trading strategy as every other plan. Position sizing, the grid, hedges, entries, exits and protective controls are unchanged. The safety net levels are the same.
• Larger deposits mean larger losses in money. The safety levels are percentages of your balance and equity. The same percentage of a bigger account is a bigger amount of money. Every risk in this document applies in the same way, but the amounts at stake grow with your deposits.

These amounts are in your account's currency. They are examples, not limits. Losses can be larger, for the reasons in section 3.

• Ultimate is not a recommendation to deposit more. Only deposit money you can afford to lose.
• Downgrading later. If you move from Ultimate to a lower plan, the lower plan's deposit limit is checked against your funding history. If you are over it, new baskets pause. Existing baskets continue, with the risks in section 5.

10. Software and technical risk

Wavqu is software. Software can have faults. A fault in our server, in the EA, in MT4, or in your broker's systems could cause trades to open, close or be changed in a way that was not intended. We test Wavqu, but we cannot promise it is free of errors.

11. Past results are not a guide to the future

• Any past results, backtests, examples or dashboard figures show what happened in the past, in past market conditions.
• Markets change. A strategy that worked before can stop working.
• We do not publish projected returns, and we do not promise any return.

12. Wavqu is not advice

Wavqu is software. We do not know your finances, goals or experience. We do not tell you whether this strategy, or trading at all, is right for you. If you are not sure, speak to an independent financial adviser who is authorised or licensed where you live.

13. Questions to ask yourself before you subscribe

• Could I lose a third or half of this account and still be fine?
• Do I understand that there is no stop loss on each trade?
• Is my broker regulated, does it allow hedging, and do I know its stop-out level?
• Will MT4 really run all the time, for example on a VPS?
• Am I using a separate account only for Wavqu?
• Is this money I can afford to lose?
• Am I happy to pay a fee that is not refunded if Wavqu loses money?

If the answer to any of these is "no" or "I don't know", please do not subscribe yet.