-The Advisor's trading method is proprietary and confidential. The following description is general by necessity and is not intended to be exhaustive of the strategy. Trading Program Summary: As global currency movements affect the value of assets tied to the US Dollar, this program attempts to create a hedge against valuation and devaluation of the US Dollar assets, while offering speculative opportunities to profit from short term swings among varying cross -rates of foreign currency using multiple strategies whose annualized return streams are negatively correlated. The objective of the program is to provide a consistent appreciation of the client's capital and preservation of the client's wealth. However, there is no assurance that the objective will be achieved or that clients will avoid loss. The program's minimum initial subscription is $500,000. The Advisors employs 6 technical systems-based trading strategies to make 100% of its trading decisions. The Advisor also utilizes certain market adaptive tools in the decision-making process. The trading method has been researched and developed over the last 12 years as a direct result of the experience of the Advisor's trading and his personal conclusions of the market behavior. The trading approach relies heavily on the disciplined management of risk. In evaluating the various factors that make up a trading decision, the system pays close attention to the potential trade's risk-reward ratio and how it fits into the profile of the entire portfolio and whether it adheres to the account's overall trading goals. The Program is designed to generate attractive speculative returns, coupled with manageable drawdowns. An advanced excursion analysis is used to identify optimal levels of stop placement. The Advisor has quantified data to conclude that as a result of these "signal driven applications", a detached, but accurate perspective of the markets exists in a way that the Advisor can take advantage of. He is taking signals from pattern recognitioning. The program is very "adaptive" and depending upon the recent/current market environment is subject to change to allow for a "dynamic fitting" to the behavior of current price movements. In June of 2004 the program underwent a significant modification to reduce its return volatility. The Advisor is ongoing in his development of the strategy and will adapt and employ only those methods of improvement if in the testing thereof, yield financial benefits to the advisor's clients. The Program trades Spot Forex only, but will be available at a later time to trade other markets. The system has trend bias in direction over extended time frames, though does not weight heavily near term trending influences. Currently, the liquidity offered in the global spot foreign exchange markets offers ample opportunities for the use of the strategy. There are no currently known limitations to the Advisor's strategy. However, account equity may constrain the extent to which an account may participate in the advisors program. The Advisor will trade all major currency pairs, including AUDUSD, NZDUSD, EURCHF, EURUSD, USDJPY, GBPUSD, USDCHF, USDCAD, and EURJPY, in the foreign exchange marketplace. The Program will add to or eliminate certain currency pairs from time to time. These decisions will be based on market volatility, global political risks, timing issues, as well as other factors. All accounts managed by the advisor may not necessarily exhibit parallel performance. In particular, the advisor may refrain from accepting "old signals" (i.e. mechanical trading signal), which date prior to the commencement of a new account opening. Risk Management: Liquidate losing trades, thereby taking them "off the table", while letting winning trades persist. VaR of total portfolio and individual position risk in relation to portfolio is constantly monitored. Dynamic stop placements afford adherence to overall portfolio risk/loss band tolerance.