Summary

-The Eliades Program (EP) is the result of in-depth research on over 80 years of daily market history. That research has identified human behavioral patterns that result in predictable buying cycles in other words, we have identified specific time periods when the market has a strong tendency to perform well. Our investment philosophy is to be invested only during those times. Since we have precise trading dates and use an index fund for the S&P 500 when we move into the market, we are able to get what should be a very representative pro forma track record simply by using the daily closing price for the S&P 500 on our respective trade dates. Due to the fact that our trade dates are specific, we can determine program results during different economic times and environments booms, recessions, hyper-inflation, stagflation, deflation, war, peace, etc. In fact, we have compiled the program results from virtually every potential economic environment including the Great Depression years that deflated the market by 90% and the more recent dot.com collapse that took the NASDAQ 100 down by 83.5%. We have researched daily data going back to December 31, 1927 ? data which includes the entire array of diverse economic events over that time span. Our real-time track record begins on February 24, 2005. In fact, going back to June 2000, we are able to use our trade dates with the closing price in the same funds we actually trade currently. This provides us with a pro forma record that should be virtually identical to how we would have actually performed had we started our real-time trades in June 2000. This is even more meaningful when you consider that it provides an opportunity to view results of an entire bear market cycle (2000 to 2002) and a complete bull market cycle (2002 to 2007). This data from June 2000 consists of the closing prices on our trade dates in the funds we currently use and from February 24, 2005 our actual real-time trades. Prior to June 2000, we use the closing price of the S&P 500 on our respective trade dates. The index fund that we use correlates at about a 99% rate with the S&P 500 daily fluctuations. As such, the data from 1970 provides a very close approximation of what our program should have produced over this 38 year period. We selected 1970 because that is the starting date for monthly S&P 500 total return data released by Standard and Poors (total return data includes dividends [for the record, that data begins February 1970]). 1970 is an interesting start date for a number of reasons. It was the year when oil production peaked in the US; it was the year following the last year that the US had a "real" budget surplus i.e. no off budget items; it was the first year the total production of goods and services in the US eclipsed $1 trillion and it is arguably the time when the era of modern portfolio theory management began. One thing for sure, was NOT a great time to start a track record as the market couldn't get out of its own way for the next dozen years or so. It is also a time period that includes almost every type of economic environment hyper inflation, stagflation, disinflation, strong dollar, weak dollar, boom, bust, war, peace, ultra high interest rates, very low interest rates, ultra conservative times, ultra liberal times, etc.