Mobius Asset Management : Custom Trading Program

Summary

The Mobius Custom Trading Program is technical in nature and designed to detect early trend development. Markets are traded using a trend following and counter trend approach. Each market traded will generate its own entry and exit signals. From time to time, increases or decreases the total number of markets and contracts traded based on increases or decreases in account equity or market conditions. Each position's risk management parameters are updated daily to monitor volatility within the total portfolio. This program has the ability to add to existing positions and is shorter term in nature. Commodities traded are Gold, Silver Treasury Notes, Euro Currency, Stock Index Minis Crude Oil, Soybeans, Cotton and Sugar.

Risk Management

The Program is committed to adhere to strict money management techniques as an integral part of the trading program. The proprietary risk management utilizes pre-determined stop loss points, which attempt to limit losses and protect gains. Each commodity traded has specific entry and exit points along with stop levels for existing positions. These are updated daily. It should be noted that stop-loss points are not guaranteed to limit loss to the stop-loss point because, in part they are determined by the Advisor’s evaluation of historical market volatility and liquidity.

The Program determines position size as a function of both individual commodity volatility and total portfolio volatility. As volatility increases, position size will tend to decrease and when volatility decreases, position size will increase. The margin to equity ratio will be approximately 20-30%.