Understand first, then start

In bad periods the port may stay negative for months. Loans, credit cards, or money you need soon have deadlines to repay or use, and they will not wait for the market to recover.

CFDs can lose up to the entire account balance. Money used with FINNIX FACT must be money that, even if lost, still lets your daily life, expenses and debt payments carry on.

In the FACT Origin backtest, the worst period took equity down almost as much as the starting capital. A reserve is what helps a port get through a period like that without borrowing to top up.

The more of your savings sits in one port, the more that port’s swings affect your whole life. Spreading money across places helps you hold calmly when the port is down.

FINNIX FACT holds positions until prices return. Deep drawdowns in the past took many months to recover. If you only plan to invest for a short time, there is a high chance you will only see the drawdown and have to leave first.

When you have open positions, the broker sets aside part of the money in your port as collateral, called Margin The broker’s system constantly checks whether the money in your port still supports the open positions.

If the port falls until the margin level reaches the broker’s threshold, the broker’s system closes positions automatically. This is called Stop-out It is not a decision by the team or the EA, and once positions are closed the loss becomes real. You can no longer wait for prices to return.

Balance counts only closed positions, while Equity is the balance plus or minus the profit and loss of open positions.

An EA that holds positions until prices return can show a very good balance while the open positions are deeply negative. Ask yourself: if you had to close every position now, how much would be left? Which number answers that question?

Drawdown is how far the port falls from its peak. In the FACT Origin backtest starting at $10,000, equity once fell by up to about $9,803.

Think it through: if a period like that happened again after you start, with only the minimum capital in the port and no reserve, how much would be left? And the future could bring a period worse than the past.

The trading account is opened in your name with the broker. Deposits and withdrawals go through the broker’s Personal Area which should have 2FA turned on.

The team only uses the MT5 port password so the EA can trade. This password cannot withdraw money. A Partner or whoever referred you has no access to your account at all.

High-water mark is the highest equity point on which a share has already been charged. The team charges Profit Sharing only on the profit that takes the portabove this point.

Using this example, think: in the month it rises to $9,600, has the port gone above its previous peak yet? And which part of the profit counts as “new profit”?

Index fund you own fund units that hold real shares. When the market falls you can hold for as long as you like, and no one forces you to sell.

CFD is a contract that pays the price difference. You do not own the shares. It uses leverage, has an overnight fee (swap), and has the margin and stop-out mechanism. Even though it tracks the same index, the risk is very different.