Four Winds Capital : Investment Program

Summary

-Four Winds Capital´s trading strategy is the result of the traders´s observations in the markets covered. This are the futures markets of US indexes (S&P500, Nasdaq 100 and Russell 2000). All observations are converted in probabilistic events and studied statiscally. The manager´s experience is in trading indexes all over the world since 1998 when carreer in the financial markets begun. The move to trading index futures and forming a firm was in 2002. From 2002 to septembre 2004, the firm trade only propietary trading capital, until the fund Spring Futures Investments fund was approved and started trading activity in mid September 2004. Currently the fund´s biggest shareholder is Four Winds Capital. The strategy has multisystems each derived from the process described above. This probabilistic events in the the 3 markets (Emini S&P500, Emini Nasdaq 100 and Emini Russell 2000) have different characteristics: continuation of movement, return to normality, reversals, breakouts, blow off volume moves, momentum plays and trend confirmation. This variety gives some kind of diversification to the strategy, since these events are independent from each other. The strategy has two types of daytrades (only take positions during the day, to eliminate overnight risk in a 24hr market): all day (enter at NYSE open and exit at NYSE close) or intraday. The objective of the strategy is to capture movements in the Dow Theory´s Short Term Trends (1-5 days) but using only daytrades. This characteristic gives the average time frame of the trade between 2-6.5 hrs. The system is completed with a Dynamic Money Management system that indicates the No. of lots to be assigned to each individual system or probabilistic event considered the maximum risk of loss defined by the manager (Systems have a max. loss between 1% to 2% of total equity). Those systems that are showing signs of decay are traded with less agresivity that those that are in good shape. The dynamic characteristic of the strategy is also seen in the addition of new systems after a rogourous statiscal study. Currently the strategy is traded in the Spring Futures Investments Fund managed by Four Winds Capital. But individual managed accounts are accepted. The minimun investment for the fund is US$ 10,000, but only NON US persons or citizens are allowed, and the min. for indivual accounts is US$ 200,000.