Altus Trading, LLC : Managed Forex Program A

Summary

The Altus Trading Managed Forex Program A uses several exclusive proprietary trading systems that were developed in-house by using unique methods of optimization, utilizing in-sample and out-of-sample testing. The aim of the Altus Trading Managed Forex Program A program is to provide an investment alternative in the spot foreign exchange markets with minimal correlation to equities and fixed income investment instruments. Note the performance shown through May 2013 is for LPOA client accounts directed by the Principal. ALTUS TRADING IS A 4.7 EXEMPT COMMODITY TRADING ADVISOR, ALL STRATEGIES OFFERED ARE OPEN ONLY TO THOSE WHO CAN DEMONSTRATE THEY ARE QUALIFIED ELIGIBLE PARTICIPANTS ("QEP"). Find out more at http://www.altus-trading.com

Investment Strategy

All of our trading systems utilize and are built around a technical analysis approach. The Altus Trading Managed Forex Program A trades the EUR/USD, AUD/USD, EUR/AUD, EUR/CAD, GBP/CHF, USD/CHF, EUR/CHF, EUR/GBP, USD/JPY, GBP/JPY, AUD/NZD, USD/CAD, EUR/JPY, AUD/JPY, NZD/USD and GBP/USD. Our average trade length is about 2.5 hours and we aim not to have open trades into a weekend to reduce market exposure. The approach that is utilized by Altus Trading, is to have a portfolio of strategies employing various trading techniques. These techniques include breakout, scalping, ranging, and trend-following. The strategies are intended to be short-term in nature. Our systems main objective is to observe the market’s price action and predict recognized chart patterns. The trading systems employ a mixture of standard technical indicators, including moving averages, relative strength index, and other exclusive proprietary indicators [developed internally] to help define present market conditions and generate trade signals, in pursuit of delightful risk-adjusted returns. These systems utilized together, creates a portfolio approach to trading, and the blend of the systems trading concurrently allows for a smooth equity curve, capitalizing on trading opportunities in a multitude of market conditions. Altus Trading also monitors liquidity, price availability and execution to ensure that they are competitive and in line with the market. These are important variables to keep in consideration, given that the market is Over The Counter (cash market) and we’re not trading over a central exchange where all brokers provide the exact same price. These principals carry over into our beliefs of maintaining trading systems that are short-term, in attempt to avoid over-exposure to the market.

Vital to the Altus Trading trading style, are low correlation between the different strategies employed and use of high liquidity currencies for efficient order execution. The actual number of strategies being used may vary and may change materially over time as determined by Altus Trading in their sole discretion.

Risk Management

The fundamental objective of the Altus Trading Managed Forex Program A trading program is preservation of capital, achieved through application of methodical technical analysis and very exact risk management protocols. Altus Trading’s edge in forex trading is recognized through our disciplined short term systematic approach toward the currency markets [average trade length is less than 3 hours]. Our target is to achieve and attain consistent capital appreciation, while attaining a low level of volatility. Exact risk management protocols are the means to successful trading outcomes over the long term. Every trade signal of Altus Trading’s models must take into account their respective risk to reward parameters and overall impact to yield. The initial risk per trade for our strategy ranges from 0.1 - 3.0% and a pre-determined maximum drawdown limit is set at 10% of the program’s daily beginning equity (variables can be adjusted for single allocations >$1m). These pre-determined drawdown limits are imposed, so any position(s) that realizes the pre-determined drawdown limit will be issued a close order immediately. In summary, the program’s multiple systems utilize / risk small amounts of trading capital per trade, and concurrently adhere to automated drawdown limits, continuously evaluating markets, and exercising efficient risk management processes, which hopefully leads to consistent, reliable and profitable results, whilst also preserving capital.