Summary

-JLC uses multiple low correlation technical systems over multiple time frames to manage customer accounts. JLC believes that future price movements in all markets may be more accurately anticipated by historical price movements using technical analysis than by fundamental economic analysis. Since both non-directional and price directional trading strategies are employed, major long-term price movements are not necessarily needed for the program to be successful. However, JLC is primarily a medium to long term trend follower. A countertrend model that has yielded good risk/reward characteristics in the past is combined with other trend following models to form a robust trading program that is slightly less dependent on any one particular market characteristic. The Advisor will effect transactions on most exchanges located in the United States, as well as non-U.S. exchanges, which include but are not limited to the London International Financial Futures and Options Exchange Ltd. (LIFFE), the Eurex Deutschland (EUREX), the Singapore International Monetary Exchange (SIMEX), London Metal Exchange (LME) and the Sydney Futures Exchange Ltd. The contracts that are currently traded by JLC include Eurocurrency, Japanese Yen, British Pound, Canadian Dollar, Australian Dollar, Mexican Peso, Eurodollar, Euribor, Short Sterling, U.S. Ten-Year Bond, Euro Bund, Long Gilt, Japanese Bond, Australian 3yr Bond, Nasdaq 100, Australian Share Price Index , Dax Index, FTSE Index, Nikkei Index, Taiwan Index, Crude Oil, Natural Gas, Silver, Copper, Corn, Soybean Meal, Soybean Oil, Wheat, Coffee, Cotton, Cocoa, Sugar, Live Cattle, Lean Hogs, Zinc, Nickel and Aluminum. INITIAL CAPITAL RISK EXPOSURE. The advisor attempts to limit maximum risk per trade to 0.2% of equity. POSITION SIZING. The advisor has a proprietary formula to determine the initial trading size based on market volatility among other factors. The Advisor may not take a trade in a market when the formula determines that risk is too high for that trading account size. Significant potential profit opportunities may be missed which would otherwise have been captured.