Risk Disclosure

What Execute handles, what it does not, and the real risks of automated trade execution.

This page describes what Execute is, what it is not, and the specific risks you accept when using automated execution infrastructure.

What Execute is

Execute is engineering infrastructure. It receives trade signals, calculates position sizes, places orders on your broker accounts, manages exit logic, and records performance data.

It is a tool that executes YOUR decisions — the instruments you choose, the strategies you configure, the risk parameters you set in your Google Sheet.

What Execute is not

Execute is not investment advice. It does not recommend instruments, strategies, entry points, or position sizes. Every trade originates from your signal source (TradingView alerts, built-in strategies you subscribe to, or custom webhooks).

Execute is not a profit guarantee. Automated execution removes hesitation and emotion from order placement. It does not remove market risk. A disciplined system executing a losing strategy will lose money consistently.

Execute is not a hedge fund, PMS, or advisory service. It does not manage your portfolio, allocate across asset classes, or make discretionary decisions on your behalf.

Your stop loss is managed by software

You can always log into your broker directly and place a manual stop or close positions yourself — this takes effect instantly regardless of platform status. Your stop loss is managed by the Moneyplication platform, not by your broker. The system monitors candle data and places exit orders when your SL is hit. If the platform is unavailable (outage, maintenance, connectivity issue), your open positions have no automated stop protection during the downtime. This is a fundamental characteristic of software-managed exits. If you need broker-level stop orders that persist regardless of platform status, you would need bracket orders — which Execute does not currently support.

Automated trading risks

Price gaps through your Stop Loss

Markets gap. Overnight news, earnings releases, circuit breakers, and low liquidity periods create price discontinuities. Your SL at $180 does not guarantee a fill at $180. In a gap-down scenario, your MARKET exit order fills at the first available price — which could be significantly below your stop.

This applies to all SL types across all instruments. Execute uses MARKET orders for exits, which prioritize fill certainty over fill price.

Partial fills

Not every order fills completely. Low-liquidity instruments, large position sizes, and volatile conditions result in partial fills. Execute detects partial fills and retries the remaining quantity automatically. During the retry window, your position size is smaller than intended — and your risk exposure differs from what was calculated.

Broker outages

Brokers go down. API endpoints return errors, rate limits are hit, and maintenance windows overlap with market hours. When Execute cannot reach your broker's API, orders queue but do not execute. There is no fallback broker — if your primary broker is unreachable, that account's orders wait until connectivity restores.

Infrastructure failures

Execute runs on Cloudflare's edge network. Cloudflare has high uptime but is not immune to outages. A platform-level failure means signals are received but not processed until service recovers. During recovery, market conditions may have moved significantly from the original signal price.

Technology risks

Candle data delay

Exit decisions in the Trade Manager (TM) depend on candle data that syncs from your broker's historical API every minute. If the data feed is delayed — due to broker API latency, rate limits, or temporary errors — TM's view of the market lags reality. A SL breach that occurs at 10:05:00 may not be detected until 10:06:15 if the candle sync is delayed.

Token expiry

Broker API tokens expire. When your access token in the Google Sheet is stale, Execute cannot place orders on that account. You receive an error notification, but orders for that account fail until you refresh the token.

Some brokers require daily token refresh (e.g., Zerodha's access token resets daily). If you do not refresh before market open, that account is inactive for the session.

Circuit breakers and exchange halts

When an exchange halts trading on an instrument (circuit breaker hit, regulatory halt, or technical issue), Execute cannot place or modify orders. TM continues monitoring candle data, but exit orders will not execute until the halt lifts. In the interim, you hold an unhedged position with no ability to exit.

Instrument resolution edge cases

Execute resolves instrument identifiers across exchanges. Futures contracts roll over. Options expire. Symbol formats differ between brokers. If instrument resolution fails — because a contract expired, a symbol changed, or the exchange mapping is ambiguous — the order is rejected with an error. No fallback instrument is substituted.

What Execute does not handle

  • High-frequency trading (HFT) — Execute operates on candle timeframes (minutes to hours). It is not designed for sub-second execution latency.
  • Greeks hedging — There is no delta-neutral management, gamma scalping, or automated hedging of options Greeks.
  • Corporate actions — Stock splits, bonus issues, mergers, and delistings are not automatically handled. Position sizes and SL levels are not adjusted for corporate events.
  • Guaranteed fills — Execute uses MARKET orders. Fill price depends on market conditions at the time of execution.
  • Bracket orders — Execute places entry orders and manages exits through TM's state machine. It does not place simultaneous entry + target + SL bracket orders natively.

F&O specific risks

Expiry day

Options and futures contracts expire. If TM is managing a position on expiry day, exit logic runs the same as any other day — but liquidity on expiry day behaves differently. Wide spreads, erratic price action, and exchange-imposed margin increases create conditions where normal exit assumptions do not hold.

Execute does not automatically roll positions to the next contract. If you hold a position through expiry without an exit trigger, the contract settles at the exchange-determined price.

Overnight margin requirements

Brokers increase margin requirements for overnight positions, particularly in F&O segments. A position that was within margin at 3:00 PM may trigger a margin call by 3:25 PM due to end-of-day margin rules. Execute does not monitor real-time margin utilization — it checks margin at order placement time only.

Your responsibilities

As a user of Execute, you are responsible for:

  • Keeping your broker tokens current. Stale tokens mean failed orders.
  • Setting appropriate risk parameters. Execute calculates position size from your configuration. If you set risk too high, the system executes at that level without question.
  • Monitoring your positions. Execute sends notifications but does not replace your obligation to know your exposure.
  • Understanding your broker's rules. Margin policies, position limits, order types, and settlement procedures vary by broker. Execute does not override or supplement broker-level risk controls.
  • Refreshing your Google Sheet. Account configuration, strategy sizing, and enabled/disabled flags are read from your sheet. Outdated data leads to incorrect execution.
  • Accepting that losses are possible. Automated execution reduces emotional interference. It does not reduce market risk.
⚠️

No system eliminates the risk of financial loss. Past performance — yours or anyone else's — does not predict future results. Trade only with capital you can afford to lose.

SEBI disclaimer

This is engineering infrastructure, not investment advice. All trading involves risk of loss.

Moneyplication does not provide stock recommendations, portfolio management services, or investment advisory services. It is not registered as a Research Analyst, Investment Adviser, or Portfolio Manager with the Securities and Exchange Board of India (SEBI) or any equivalent regulatory body.

All trading decisions, including instrument selection, strategy design, risk parameters, and position sizing, are made by you. Execute automates the mechanical execution of those decisions. Responsibility for trading outcomes rests entirely with you.

Next steps

  • Execute overview — understand what Execute does and how it fits together
  • Set up your account — link your broker and run your first test
  • Trade Manager — how exit management works in detail

Need custom automation beyond built-in strategies? Talk to us.