Minimum Investment
Management Fee 2.00%
Performance Fee 20.00%


PROGRAM 1 - TECHNICAL ENTRY PROGRAM (OPTION WRITING) This program only trades financial futures, with a focus on the S&P 500 futures contract and options on that contract. The Advisor uses a systematic approach to futures trading which emphasizes making a technically correct "buy" or "sell" of the S&P 500 stock index future. The Advisor uses several proprietary technical tools to determine long term support and resistance price levels on the S&P 500 futures contract. These price levels are what the Advisor calls Pivot Points. It is the expectation of the Advisor that the index will either reverse its trend at a Pivot Point or, at a minimum, see short term stagnation in price movement. The Advisor sells naked put and call options against Pivot Points on the S&P index. Most of the options that are sold by the Advisor expire worthless at expiration because the options that the Advisor sells are generally significantly out of the money. In the event that the market closes above or below a Pivot Point and the futures contract is actually put to the account or called away from the account, the Advisor will then utilize the same technical tools to determine logical profit objectives and buy or sell stop placement on the contracts that were delivered to the account. By selling options at a predetermined price level the Advisor is assured of entering or exiting a trade at the most technically advantageous level. This methodology for trading ensures that the client will be buying or selling the S&P 500 contract at a technically and historically advantageous long term support or resistance area. The Advisor may "leg" into a trade. This means that the timing of selling a put option may not be the best time to sell a call option based upon market technicals. Time of entry into a trade is one of the most important elements of the trade decision. The Advisor will generally seek to sell options after large momentum days that have high volatility and broad price ranges. These types of trading days tend to create imbalance in the pricing of the options and allow for excess time premium to be captured at the time of the option sale. The execution of this program i.e., determining the number of contracts to trade, the prices of the options, and which maturities are the most favorable, depends upon both technical and fundamental considerations. A hedging component is also used when the market closes above or below a significant moving average and the Advisor will hedge the options position by buying or selling contracts in the direction of the trend. The management strategy is not a "black box" strategy that indicates a buy or sell signal. There is significant subjectivity involved by the Advisor in determining both entries and exits into futures and options positions. The Advisor intends to trade futures and options on financial futures contracts, with an emphasis on the S&P 500 contract. No other commodities are traded in this program. Assets committed to initial margin generally will range between 40-60% of equity but at times margin commitments may be above or below that range.