Revilo Strategic Investments, LLC : Razor Program (Proprietary)

Summary

The Advisor expects to trade grains, currencies, softs, indexes, bonds, metals and energies, however, if the Advisor sees opportunities in other markets, the Advisor may do so. The Advisor does not expect to trade on international markets. The Razor Program predominately trades options on futures. However, the Advisor may see a need to trade futures and reserves the right to do so. The Advisor does expect to trade both put and call options which will be traded either electronically or directly on the exchange. Generally speaking, the average length of a trade is three to eight days however, it is possible that trades may remain open in a client’s account for significantly longer periods.

Investment Strategy

The Advisor’s trading methodology is geared for relatively low margin to equity parameters. The Advisor’s trading program is not a premium selling trading program. Instead, the Advisor buys options to reduce risk and maximize profit. The roots of this trading methodology come from the Advisor’s trading principal’s six years as a broker in the futures and commodities markets. What he noticed was that premium sellers were regularly protecting positions during adverse moves, creating more cost and uncertainty. On top of that, selling options inherently reduces profit potential and dramatically increases risk (i.e. you have limited profit but unlimited risk).

Risk Management

By buying the options, the Advisor’s trading principal realized the position gained a continuously larger percentage versus the future price, more premium, but if the future moved away from his prediction, he would lose fractionally less and less. The Advisor also identifies market volatility and price when deciding how to place trades. The Advisor does not trade each commodity with the same aggressiveness (for example, a silver contract has a much larger price movement than a British Pound). Mr. Pasulka has spent the last eight years, creating and refining his trading method.