Leverage
The strategy trades leveraged instruments. Leverage magnifies both gains and losses: a small adverse move in the underlying index can produce a loss that is a much larger share of the account. Losses can accumulate quickly in fast markets.
CFD counterparty exposure
Live execution uses a broker-issued index CFD following the S&P 500; the product name and symbol vary by broker. A CFD is a contract with the broker, not an exchange-traded instrument. You are exposed to the broker's creditworthiness, pricing, and terms, and CFD prices and trading conditions may differ from the underlying cash index and related futures markets. Broker regulation and client-money protections vary by jurisdiction.
Gaps and slippage
Each position is opened with a predefined risk level, although gaps, slippage, and execution conditions can cause losses to exceed the intended amount. Prices can jump over stop levels around news, session opens, and thin liquidity, and the fill you receive can be worse than the level requested.
Stop orders are not guaranteed
Stop orders are intended to limit losses but do not guarantee execution at the requested price. In a fast or gapping market a stop can be filled beyond its level, and several positions can be open at once.
The daily circuit breaker dampens losses; it does not cap them
A daily circuit breaker halts new trades for the rest of the day once that day's losses reach a set threshold. It reduces the depth of bad days, but positions already open can continue to move, and a small number of days each year can exceed the typical range.
Losing periods are normal
In the five-year backtest, roughly one month in eight finished down. The worst single backtested month for each risk level, under the current-tier model shown on this site, was:
| Risk level | Worst backtested month |
|---|---|
| Level One (conservative) | -4.35% |
| Level Two (moderate) | -8.65% |
| Level Three (aggressive) | -17.01% |
Live results could be worse. Anyone who cannot hold through drawdowns of this order at their chosen risk level should choose a lower level or not participate.
AMW may not be appropriate for you
AMW is a trading system, not a savings product, and it can lose money. You can lose part or all of the money committed to the account. In particular, AMW may not be appropriate for you if:
- You cannot afford to lose the money you would commit to the account.
- You need this money for living expenses, debt payments, or a near-term purchase.
- You are looking for guaranteed, steady, or predictable income.
- A decline of the size shown in the historical drawdown figures would cause you serious financial or personal distress.
- You do not understand leverage, margin, or how a leveraged contract works, and are not willing to learn before committing money.
- You expect the backtested results to repeat in live trading.
- You are not willing to review broker statements and monitor the account's activity.
- You would be trading with borrowed money or your emergency savings.
Hypothetical results and past performance
All performance figures on this site are backtested and hypothetical. They were prepared with hindsight, involve no financial risk, and do not model slippage or liquidity, and live CFD execution conditions differ from the futures data used in testing. No representation is made that any account will achieve results similar to those shown. Past performance does not guarantee future results.