Taylor Growth : Harvest Plus

Summary

Taylor Growth Managed Accounts, otherwise referred to as the trading strategies, is the result of several years of research in systematic trading methods. Our research team had created various versions of trading software based on different trading approaches. However, in our opinion a systemic approach using a mathematical algorithm with calculated entry and exit positions, repeated systematically and without emotion through computer trading, resulted in the product we believe, is capable of generating solid and consistent rates of return. Money management is at the core of these systems. The lack of a regimented money management strategy is one of the leading causes of failure for self traders. The specifics of these trading strategies is proprietary, but the following pairs are frequently traded: Specifically, the currency pairs EUR/CHF, CHF/JPY, AUD/JPY, AUD/USD, USD/CAD, EUR/CAD, EUR/JPY, EUR/USD, GBP/USD, GBP/JPY, USD/JPY are routinely traded. Other major currency pairs and their cross pairs between such currencies may also be traded. Additionally, small amounts of spot gold XAU/USD may also be traded from time to time as a hedge against the US dollar. In this way the trading system diversifies across different economic regions of the world. Trades are entered for both short and medium term positions with a computer algorithm. A mathematical algorithm places trades based on historic price action. Positions are placed to major market trends that surpass technical support and resistance levels, otherwise known as breakouts, and trend reversals. Ideally, terminating, moving, or withdrawing money from accounts should be timed when the balance of open trades is at a minimum. The CTA uses a master trading account to trade all of the client accounts. Trading on the master account must be suspended temporarily for a client to withdraw or add funds. For these reasons, prior notification of the withdrawal is a helpful courtesy for our trading team (though not explicitly mandated). Intraday Trades – As these trading strategies employ intraday trading, the client should understand that the principle risk factors on pages 12 thru 14 of this document. Additionally, as intraday trading relies on only brief time frames and market movements to make a profit or loss, intraday trading can be particularly susceptible to electronic infrastructure outages, and other risks that can affect intraday positions such as: leverage, market risks, volatility, execution delays, slippage, widened spreads, news events, government policy announcements, interest rate changes, patterns of trade and war or other military conflicts. No assurance can be given as to when or whether adverse events might occur that could cause significant and immediate loss in value of a client’s account due to rapid moves or inability to access and manage intraday positions. Due to day trading’s typically increased trading activity, your total transaction costs, paid for in the spread, will also increase. For each position entered the spread will have to be paid first and requires additional profit to cover all of your trades. Intraday trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should not fund intraday trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses.

Investment Strategy

Technical trading with an underlying premise of price breakouts, pattern recognition and trading rules

Risk Management

The Treasure and Harvest+ Managed Accounts create profits through trading foreign exchange currencies. Specifically, the currency pairs EUR/CHF, CHF/JPY, AUD/JPY, AUD/USD, USD/CAD, EUR/CAD, EUR/JPY, EUR/USD, GBP/USD, GBP/JPY, USD/JPY are routinely traded. Other major currency pairs and their cross pairs between such currencies may also be traded. Additionally, small amounts of spot gold XAU/USD may also be traded from time to time as a hedge against the US dollar. Trading currencies have inherent risks which are both system wide and also due to the selected broker (FDM) and their infrastructure, market volume and trading policies. Trade execution risks are only touched on here, further detailed information on trade execution risks can be obtained from the broker directly with whom you will setup an account. Though thoroughly tested and built off of the experience of prior systems, the Harvest+ and Treasure trading systems are new systems within the last 18 months, and as such do not have the benefit of a long term track record that has traded through various market conditions. 2. THE TREASURE SYSTEM IS CONSIDERED BY THE CTA AS OUR MOST AGGRESSIVE TRADING SYSTEM. THE HARVEST+ SYSTEM IS CONSIDERED OUR MODERATE RISK SYSTEM. BOTH ARE USING AN AUTOMATED SYSTEM THAT IN THE CTA’S OPINON, HAS PERFORMED WELL IN ITS SHORT HISTORY. HOWEVER, IN OUR OPINION THERE IS NO “FREE LUNCH” AND BIG RISKS ACCOMPANY BIG REWARDS, SO CAREFULLY CONSIDER YOUR TOLERANCE FOR LOSING YOUR ENTIRE PRINCIPAL SUDDENLY AND WITHOUT WARNING BEFORE YOU BEGIN THESE TRADING SYSTEMS.