Cutler Investments : Cutler Trading Program

Summary

-The Cutler Trading Program is a non-discretionary, systematic, short-term trend-following approach based on proprietary momentum indicators. Trade entry and exit is based on indices constructed from statistically significant intra-day time periods. Trading is performed at pre-defined times during each session, which aids in minimizing "market noise" while still providing valid trade signals. Allocation is equal among the five futures instruments currently traded, U.S. T-Bonds and T-Notes and the S&P 500, Nasdaq and German DAX indices. Leverage for each market is based on analysis of current vs. historical risk/return payoff schedules. The program utilizes 12.0%- 14.0% of the trading capital for margin, and the duration of trades average 1 to 4 days in length. When a flat position is taken in one instrument, the assets allocated to that instrument remain in cash, reducing the capital committed to the program and thereby the day-to-day volatility. Annually, 2.0% of the assets are used for trading commission. Disciplined adherence to the Program's output is essential to the performance of the fund. The Trading Program undergoes continuous review in the context of historical, actual and pro-forma performance.