Archsight Capital Partners LLC : Prometheus Trading Program

Investment Strategy

Prometheus trades short- to medium-term options using a proprietary, systematic strategy comprised mainly of ratio spreads. Prometheus uses technical and fundamental analysis for each of its traded products to develop a market forecast. Every month, the trading program establishes an initial combination of futures options positions using the developed market forecast, along with a quantitative analysis of market option prices. Prometheus makes constant refinements to these initial positions based on the price movements (or lack thereof) of each product until the liquidation or expiration of the positions.

The trading program primarily focuses on trading options on S&P 500 Futures, Crude Oil Futures, Gold Futures, 30-Year U.S. Treasury Bond Futures, and Soybean Futures. ArchSight Capital, at its sole discretion, may add or delete futures products from participating customers' portfolios.

Risk Management

The bread and butter of the Prometheus Trading Program is its risk management. While many options strategies have defined entry and exit parameters, such binary techniques would fail to account for the changing the risk/reward profile of a ratio spread position over the course of its life. Prometheus continuously evaluates the risk/reward level of its positions and uses proprietary risk management procedures to make constant refinements and ensure that the desired risk and reward of those positions are well balanced at all times until liquidation or expiration. The goal of this risk management strategy is to produce consistent range of positive monthly returns that are largely uncorrelated with the stock, bond, and commodity markets.