Summary

"The objective of the ACE's Hybrid Approach Strategies is to enhance the consistency of overall returns by taking advantage of various market conditions with a vast array of investment vehicles and techniques. It is central to this trading strategy that ACE makes use of flexibility to match the optimum trading style to the specific market situation. It's an ""all market weather"" strategy approach in the sense that is tries trade the three stages of the market for optimum results. ""It's a simple formula: match the optimum trading approach to the current market environment and adjust as that changes. Of course, it's be bit more complex than that. It takes stern dedication to be that flexible and convicted to your trading program, disregarding all distractions. It takes experienced and seasoned trading."" The Multi-Market Hybrid Approach (MMHA) strategy combines the use of Stock Indices used in the SIHA strategy and selected commodity futures and options to offer the potential of greater returns than the stock index strategy alone due to the low correlation of performance between and among stocks and many commodity markets. ACE may choose to use spreads, be long or short the future or the option, or swing-trade the future, or apply dollar-cost-averaging approaches, or other trading styles, very much directed by, and in sync with, the market situation at the time. ACE selects commodities opportunistically and consistent with their liquidity and timeliness. Examples of commodity categories likely to be included are foreign currencies, the credit markets, precious metals, energy products, grains, “softs” and the meat complex, among others. Each commodity market has unique characteristics and therefore is subject to unique trading parameters and style. ACE determines position-size accordingly. Strict risk management techniques are an integral part of the strategy using predetermined stop loss points which are designed to limit losses and protect gains. The use of stop loss or contingent orders may not protect profits or limit losses to the amounts intended. Certain market conditions make it difficult or impossible to execute such orders. The appropriate investor for the MMHA will be someone who has had experience trading commodities, who is comfortable with frequent trading and exposure to higher than average risk in order to achieve potentially higher than average returns. It is suggested that at least 20 months should be allowed to evaluate performance of the MMHA strategy. Trading futures and options involves substantial risk of loss and is not suitable for all investors. The risk of loss in options writing programs is unlimited. Past performance is not necessarily indicative of future results."