Risk, Capital & Scaling

Each strategy may require different capital depending on:

• Instrument type
• Contract size
• Number of positions
• Scaling level
• Broker margin rules
• Market volatility
• Whether multiple strategies are followed at the same time

All CRESCOZ strategies start at 20% scaling.

Scaling increases in 20% increments:

20%, 40%, 60%, 80%, 100%, 120%, and so on, up to 10x.

The E in E - MICRO means EVEN days. The O in O - MICRO means ODD days. Both use MNQ & MES contracts.

For educational examples:

1 lot = 5 micro futures contracts

1 lot = 5 options contracts

This lot reference helps subscribers understand how trade size may be discussed across strategy descriptions.

Higher scaling increases exposure.

Lower scaling reduces exposure.

If a subscriber increases scale without sufficient capital, they may face:

• Margin pressure
• Rejected trades
• Partial fills
• Forced liquidation
• Larger drawdowns
• Emotional stress
• Difficulty following the strategy properly

• Futures are leveraged instruments
• Margin requirements can change
• Fast market movement can create large profit or loss
• Lower day-trading margin does not reduce contract risk
• Losses can exceed the initial margin deposit

• Leveraged & Inverse ETFs such as TQQQ, SQQQ, SPXL, and SPXS may decay over time due to compounding and volatility
• Inverse ETFs can move sharply against the trader
• These products are generally more suitable for short-term active trading than long-term passive holding
• Large Leveraged & Inverse ETF positions can consume capital needed for options or futures trades

• Options lose value as expiry approaches
• Premium can fall quickly
• A correct market direction can still lose money if timing, volatility, or strike selection is poor
• Options require more education than ordinary ETFs
• Buying options has defined premium risk, but the premium can still be lost fully

A drawdown is a decline from a previous account high.

Drawdowns are a normal part of trading.

Subscribers should review strategy history, capital requirements, scaling levels, and personal risk tolerance before subscribing.

IRA and 401(k)-type accounts may have additional restrictions compared with ordinary taxable brokerage accounts. These restrictions may include higher margin requirements, limited product permissions, restrictions on borrowing, restrictions on short selling, limits on options strategies, limits on leveraged products, and plan-specific rules.

Visitors considering using an IRA or 401(k)-type account should confirm all details with their broker, brokerage firm, plan administrator where applicable, registered investment adviser, and qualified tax professional.