Mobius Asset Management : Diversified Program

Summary

The Mobius Diversified Trading Program is a diversified trading program both by products and trading methods. The Diversified Trading Program is technical and systematic. The Diversified Trading Program relies on multiple systems combining long term trend following and counter trend methodologies together with short term systems that blends short term trading methodologies of Commodity and Financial sectors. The Program employs a proprietary risk management overlay that monitors position size (number of contracts and commodities) based on market volatility. Each position's risk management parameters are updated daily and intra-day to monitor volatility within the total portfolio. Markets traded: Gold, Silver, Platinum, Copper, Treasury Bonds, Treasury Notes, Eurodollars, Euro Currency, J-Yen, S-Franc, B-Pound, Stock Index - Mini's, Crude Oil, Unleaded Gas, Natural Gas, Soybeans, Soybean Oil, Corn, Wheat, Sugar, Coffee, Cocoa, and Cotton

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%.