Issumboshi Assets Management : Issumboshi (Proprietary)

Summary

Quantitative Strategies - which were chosen, use a scientific and quantitative approach to conduct a comprehensive research and analysis of various futures markets across massive data sets. We have also identified numerous regular patterns, which repeat frequently in these markets. Only these patterns logical, statistically significant and profitable across various markets and proven to be the most robust are used to formulate strategies in actual trading.

Investment Strategy

The system uses a disciplined, multidimensional technical strategy to a diversified group of markets. The strategy is based on multiple, independent and parallel, trend-following systems with a formalized overlay. Each trading system is designed and validated to extract different market behaviors on different time horizons (frequencies) for a particular market. Within the parameters of multiple frequencies the trading methodology combines systematic, disciplined trading criteria, which are unique to each market, with well-defined, responsible risk management procedures. Each strategy is designed to deal with a specific pattern or market condition being independent and non-correlated to the others. These strategies can be categorized as Intra-day Trend Following (which is different from the traditional Long Term Trend Following, or Counter Trend) and it is associated with day trading risks. The trading activities of Advisor may be quite active and the turnover rate of the Advisor‟s portfolio substantial. With aggressive trading, day trading or multiple contract trading strategies, the commissions that the customer pays may be more than what is considered “normal” for commodity trading. Although it is difficult to estimate the number of trades that may be made since technical factors will determine the trades, it is possible that a trade, or trades, may be made several days in a row, then no trades may occur for several days. They are non-parametric and adaptive to different market volatility conditions. It is possible that one strategy may signal a long position while another strategy signals a short position in the same market. Issumboshi Assets Management intends to offset those signals to reduce unnecessary trading. But provided the signals are not simultaneous, both trades will be taken. Since it is unlikely that both positions are profitable, in retrospect one or both trades will prove to be unnecessary. Issumboshi Assets Management follows trade signals of each strategy independently of the others.

Risk Management

Essentially is used for trading this futures : SPI 200-SFE, HSI –HKFE, HHI – HKFE, e-mini S&P 500 – CME, US 30y – CBOT, US 10y-CBOT, GOLD – different exchanges. In some cases also program can include Crude Oil, e-mini Nasdaq 100 Natural Gas, Heating Oil, Nikkei 225, e-mini Dow, Futures on EUR, GBP,CHF,AUD,NZD,CAD, DX – index, Russell 2000, Corn, Wheat, Soybeans, Coffee, TW index, In nifty index, It depends on Advisor choice what contracts is traded at the moment and can vary from month to month . All contracts traded in electronic versions. Forex is not traded in no shape or form. Advisor retain the right to make changes in composition of portfolio without limit, within the framework of disclosed risks. The Advisor generally attempts to limit daily risk between one percent (1%) and five percent (5%) of an account‟s equity per day. However there is no guarantee that losses will be limited to these amounts.