- Additionally, the components are tested for their correlations to other components of the program as well as the individual correlation to the program as a whole. This testing involves both normal markets and stressed markets where price correlations change quickly and sporadically. Lone Wolf?s diversified program is 90% mechanical in execution. Under certain market conditions Lone Wolf?s individual traders will provide discretion regarding the execution of the trading model in order to reduce the risk in a particular market or the portfolio as a whole. Lone Wolf Investments uses mathematical analysis of price to determine buy and sell signals for its diversified program. This is often referred to as technical analysis. There is no fundamental analysis used in the program. Lone Wolf has several different systems that it uses in its portfolios. While these systems are varied in their sensitivity to price, we would classify our overall approach as short-term trend following/momentum. Our market exits and entries are dynamic and are based on volatility factors as well as portfolio composition and ongoing results. Lone Wolf tends to hold positions anywhere from 1-day to 1-month though there can be circumstances where positions are held for a shorter period or longer period. One of the characteristics of our systems is that they have few parameters thereby reducing the possibility of curve fitting. While the program is a futures program there could be occasions where the strategy of buying or writing of options may be employed to reduce or eliminate the risk of existing positions. Our program can presently be employed across a diversified portfolio of 28 domestic futures contracts or forwards, 5 foreign futures contract and 4 foreign exchange forwards. Lone Wolf Investments LLC. currently trades and/or tracks the following commodity interests. Wheat, Corn, Soybeans, Soybean Oil, Soybean Meal, Crude Oil, RBOB Unleaded Gasoline, Natural Gas, Heating Oil, PJM Monthly Electricity, NEPOOL Monthly Electricity, Gold, Copper, Silver, Coffee, Cocoa, Cotton, 30-Year Treasury Bonds, 10-Year Treasury Notes, 5-Year Treasury Notes, 2-Year Treasury Notes, Euro-Bobl, Euro-Bund, Dow Index, S&P 500 Index , S&P 400 Mid-Cap Index, Nasdaq Index, Russell 2000 Index, DaX Index, Nikkei 225 Futures, European Carbon Financial Instrument (CFI), SO2 Futures Instrument (SFI), CCFE US CFI Instrument (CFI) Euro/US $, Japanese Yen/US $, Canadian$/US$, Australian $/US Dollar. Lone Wolf currently trades a program that is comprised of some of the aforementioned commodity interests and Lone Wolf may add or delete contracts to the program depending on market conditions, program size and portfolio performance. The cornerstone of our approach is our portfolio management as well as risk management. There are strict risk management stops for each position in the program as well as a program wide risk-management layer. These adverse movement stops are continuously calculated for each open position in the system as well as the system as a whole. We are most concerned with the daily volatility of our portfolios and do target a specific level of daily volatility and monitor portfolio composition correlation on a daily basis. It should be noted that the use of stops does not guarantee the ability to execute at or near the desired buy or sell point. Our trading program will use exchange margin to equity ratios of 5% to 15% depending on market conditions and margin levels. In addition to monitoring margin to equity ratios, Lone Wolf pays particular attention to the ratio of commodity interest controlled relative to a particular equity amount and may change the level of exposure in a portfolio as a result of that ratio. It is important to note that at particular times Lone Wolf may employ a money management technique that can vary the exposure of the portfolio. The exposure will vary within particular bands but generally, Lone Wolf attempts to maintain a consistent exposure relative to existing account equity. Wolf will significantly reduce leverage during drawdown periods. In its effort to achieve long-term superior returns Lone Wolf will err on the side of having too little portfolio exposure as opposed to being over-leveraged. This is consistent with our belief that an investment in a Lone Wolf trading program is a long-term investment and clients need to have a long-term investment horizon. The results since the program?s inception appear below. The minimum account size for the diversified program is $100,000.00.