Thales Swing Trading Programme

Future Trade AG utilizes a systematic and discretionary trading system of globally diversified Futures Interest Contracts operating over multiple time frames with volatility and market risk control. Signals from the trading systems, market liquidity along side with discretionary trading are combined to determine the contract allocation. Position sizes are a function of equity, money management and market volatility. Positions can either be long, short or neutral on a given Futures Interest Contract. In addition, Future Trade AG may utilize spreading positions (intra-market spreads and inter-market spreads). All positions, except for spreading positions, have stop losses placed at the time a trade is opened. The systems have been designed to achieve substantial portfolio diversification and initially consists of two main strategies: long term and short term. Inside of these two strategies, Future Trade AG will use different trading sub-strategies designed to result in the required portfolio diversification. The short term programs will be engineered to attempt to extract profits from short to medium term price movements and often operate counter to identified long term major trends while the long term strategies attempt to profit from major trends. It is expected that Future Trade AG will introduce additional strategies and sub-strategies in the future with the overarching goal of preserving capital while targeting strong investment returns.

Some of the indicators the system uses developed by Future Trade AG are based on moving averages of prices, or multiple averages, including exponential, weighted (single or multiple), chart patterns (head & shoulders, triangles, flags, etc.) on bar charts, momentum oscillators (rate of change of price and/or volume), support and resistance levels, overbought/oversold indicators as well as Cyclic Analysis. There is no concentration limit on a single Futures Interest Contract nor is the Account required to re-balance positions as a consequence of market movements.

Future Trade AG use a "Anti-Martingale-Strategy for Risk- and Money Management. The Number of traded contracts per market are adjusted by algorithmic formulas according to changing market conditions under consideration because of volatility, as well as in relation to the total asset value of the accounts. Markets are not weighted, as is the case for every commodity market, but rather a separate trading signal with the corresponding number of contracts, entry and exit point including "stop-loss" is generated. Pro-active risk management is included within each of these strategies which will be designed to protect open profits, limit downside risk and minimize exposure to non-directional markets. There is active money management of cash balances whether or not required for margin at any given time with funds maintained in Government or Corporate Debt with an average credit rating of no less than AA. All open positions, except for spreading positions, will have a stop loss placed at the time the position is opened. We calculate the trade risk and the position size depending from the market volatility with following formula: (Trade Risk * Account Value in US-Dollar) / (Average True Range of last 20 days * Big Point Value in US-Dollar)