Summary

-SENTIMENT FUND is a medium-term fund that employs two complementary systems simultaneously. The main system is based on DailyFX's Speculative Sentiment Index (SSI) which monitors traders positioning and open interest in currency pairs. Similar to the Commitment of Traders (COT) report published by the CFTC, the SSI gauges shifts in market momentum and trader sentiment. The system enters a trade when SSI indicates an above normal change in the general market sentiment, whether it indicates that traders have flipped direction from long to short or if there was a significant increase in the same direction. The Fund performs well when the market breaks out of an established range or has begun trending. Similarly, the Fund will draw down during periods where the market is range bound. In order to control risk and minimize the effect of a ranging market, the Fund employs a secondary system which trades pairs that are traditionally range bound by closely monitoring their support and resistance levels and entering trades at the peaks and valleys, thereby minimizing the loss from range bound markets.