ETF Tipping Point

Trading System
The ETF Tipping PointTrading system is a completely mechanical system for trading

in bull or bear markets using ETFs for the major sectors. A mechanical trading system

has set rules, is not subject to discretionary rules and emotions, and is computer-driven.
You dont have to sit at the computer for hours on end babysitting your trades. This is a

system the keeps you from being chained too your desk, and it frees you up to do other
things that are important to you.

What kind of results has the ETF Tipping Point Trading System Produced?

Box Score

Since January 1, 2007 this system has averaged a 4.03 percent monthly return across

9 sectors through bear and bull markets. These results werent home runs generating

huge overnight profits. Rather, it was the accumulation of repeatable trades that accrued
consistent and reliable profits over time.

What would have happened if you had invested $10,000 on January 1 2007 into the
nine ETFs shown above? Heres what would have happened in the DIA sector:

If you compounded an initial $10,000 in the DIA sector, reinvesting your profits from

your first trade into your second trade and so on, then your initial investment would

have grown to just over $140,000. Even if you decided not to compound, and invested

the same amount of money on every trade, your initial $10,000 investment would have
grown to $40,000.

If you compounded a $10,000 investment on the

SPY, you would have realized an $85,000 return

The QQQ returned $100,000 compounded.

The KBE Finance ETF which is the most volatile,

returned $900,000 on a $10,000 investment.

The XOI Oil Index had a $140,000 compounded

return on a $10,000 initial investment.

The Gold Index had a $400,000 compounded

return on a $10,000 initial investment.

The Semiconductor Index had a $160,000

compounded return on a $10,000 initial
investment.

The Real Estate Index had almost a $900,000

compounded return on a $10,000 initial
investment.

The Materials Index had a $250,000

compounded return on a $10,000 initial
investment.

If you had invested $10,000 into each of these nine sectors on January 1, 2007, your

$90,000 initial investment would have grown into $3,042,497 with compounding.
Thats a 33 times increase on your initial investment.

If you decided not to compound, and just made equally weighted trades with ZERO
compounding, then your $90,000 initial investment would have grown to $407,180
a 4.5 times increase.

In both of these scenarios, commissions have been factored into the equation.

What is an ETF?
An ETF is an Exchange Traded Fund. A basic ETF is an artificial index created to

EXACTLY mimic the underlying basket of stocks, without a lot of changing whats in
the basket. That is why transaction costs are minimal.

There is no management fee. Prices fluctuate just as the underlying does. You dont have

a Fund Manager doing stock picking. For example, if you look at the DOW 30 stocks,
they are represented by an ETF with DIA as its symbol.

From a simplistic standpoint, if you were to buy all of the stocks in the DOW 30 and
average their gains and losses, then at the end of the day you would come up with a
composite price equaling the sum of all of the individual parts. Divide that by 100 and
put it on an exchange, and now you have the DIA, which can be traded like a stock.

The same is not exactly true for products called Double and Triple ETFs. These products
must use futures, options and other hedge vehicles to attempt to make multiples of the

underlying on a very short-term (1 day) basis as their goal. Some are better than others,
and have become very efficient even over an extended period of time. But not all ETFs

are created equal. Just because an ETF says it is a Double or Triple Index does not mean
it will work close to that way for anything but day trading.

To show you how closely ETFs track with the markets they are designed to mimic, lets
take a look at the DOW 30 chart:

Now lets look at the DIA ETF:

Notice how these charts match each other almost to the penny.

Why should you

trade ETFs?
For investors and leading financial advisors, ETFs have become an essential portfolio
building tool for numerous reasons. Here are just a few of them:

Lower Expenses: ETF expense ratios and other built-in financial costs are
consistently lower versus actively managed funds.

Tax efficiency: ETFs are renowned for their low portfolio turnover which
generally translates into infrequent tax distributions.

Financial Flexibility: ETFs offer intraday liquidity, which means they can be
bought or sold when the financial markets are open for business.

Consistent Market Performance: ETFs linked to major market indexes

routinely outperform most of Wall Streets actively managed funds.

Mass Appeal: Whether you are a short term investor looking to hedge or a long
term investor who wants to diversify, ETFs are powerful investment tools for all
types of investors.

How we generate
The Signals
We have had Technical Analysis since the 1960s. In the 50 years since then, there is

still no single Holy Grail of indicators that can turn on a green light, telling you it is
Time to buy Motorola.

If you go to Barnes & Noble, or any other bookseller, you will find that Larry Williams
has filled 3 books with about 60 oscillators for trading. Shouldnt there be just one by
now?

The answer is that technical study by itself doesnt work. Lets face it We only have

three basic elements to work with and everyone is looking at the same data. Those three
elements are Price, Time and Volume.

Everyone scrambles to put their name on a proprietary indicator that attempts to

manipulate these elements in a slightly different way to produce a result slightly different

from the next guy. The basic failure of all these systems is simple. They all use moving
averages. You will see standard deviations, Bollinger bands, MACD, Stochastics,
Wilders parabolics, triple smoothed exponentials, Aroons and Keltner channels to
name a few.

Even the newbie discovers that moving averages are a gotcha. If they are too short,
they get whipsawed and if they are too long they get left behind, missing the market
turn. If newbies discover this quickly, then why do veteran traders with 35+ years of

experience insist on trying to make these indicators work? Indicators work, in fact they
all work.

The problem is that indicators dont work all of the time, and thats where the real

expertise lies. Knowing when to use them (uptrends, downtrends, overbought, oversold,
etc.) and avoiding them in flat markets. Guess what? The markets are flat 40 percent of
the time.

Are you willing to depend on tools that arent reliable 40 percent of the time? The more

intelligent that traders think they are, the more likely they are to gravitate back to these
indicators, because There must be a way to make them work this time.

For the past 15 years, I have avoided moving averages like the plague for just that reason.
Sure I look at Stochastics (my favorite is 5,3,3) but only when Im watching for a trend
change and want confirmation. I dont use Candlesticks any more even though I have
studied them for over a year. I try to look for those areas that are not being monitored

by other folks because that is what, to me makes the difference, I dont want to run with
the pack. The pack is invariably wrong!

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Why this System is

Different from other
Systems
1. Start with OPTION-ABLE stocks, options ETFs and indexes. It has been shown

that option-able stocks have more investor interest which equates to a better trading

vehicle. Generally their prices are more stable and display more investor confidence.
By using this simple cull, we reduce the pool to about 3,000 stocks and by nature find
stocks that are more liquid. Surprisingly, the average price of a stock with options is
just $18.58 vs. stocks with no options averaging $30.60. The volume tells a completely

different story, with optional stocks beating non-optional stocks by 18 to 1. Optional

stocks have an average of 2.2MM shares per day and non-optional stocks just 119,000!
2. I look at ETFs (which are really just proxies) for their components as a basket of
stocks, but these baskets have some basic problems, which will be discussed later.
a) The ETFs and Indexes today are a mish-mash. We have Price Weighted,
Market Capitalization Weighted, or Equal Weighted.

The only sensible way to treat these is Equal Weighted. We are trying to look for a

sector move which means an incremental move spread across all of the stocks. Any
other type of weighting disguises this. So, if we are looking at the SP500, every stock

has a 1/500 weight, whether it is priced at $4 or $400. While the index may be moved

by a few big cap weighted or price weighted stocks, by removing all weighting, we get
to see what the undercurrent is across the entire gamut of stocks.

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3. I look at On Balance volume for the individual stock components that make up
the entire ETF. This is easier said than done. Joe Granville introduced the On-Balance
Volume (OBV) indicator in his 1963 book, Granvilles New Key to Sock Market

Profits. This was one of the first and most popular indicators to measure positive and
negative volume flow. The concept behind this indicator is that volume precedes price!

Volume Precedes Price!

The tables shown in the beginning of this discussion produced impressive results based
on the premise that volume precedes price. On-Balance Volume (OBV) is a simple

indicator that adds a periods volume when the close is up and subtracts the periods
volume when the close is down.

A cumulative total of the volume additions and subtractions forms the OBV line. This
line can then be compared with the price chart of the underlying security to look for
divergences or confirmation.

As stated above, OBV is calculated by adding the days volume to a running cumulative

total when the securitys price closes up, and subtracts the volume when it closes down.
For example, if today the closing price is greater than yesterdays closing price, then:
The new OBV = Yesterdays OBV + todays volume
If todays closing price is less than yesterdays closing price, then
the new OBV= yesterdays OBV, less todays volume.

If todays closing price is equal to yesterdays closing price, then

the new OBV = yesterdays OBV.

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The intent of this is to ferret out where the buying and selling pressure is, but its
weaknesses are obvious. If we have a strong rally with huge volume, but in the last 15

minutes a selloff occurs and the index we are monitoring goes just slightly negative,
then ALL of that volume gets assigned to the negative side of the ledger. Conversely, if
there is strong downward volume, and the index turned slightly positive in the last few
minutes of trading, then all of that volume would be assigned to the positive side of the
ledger.

It doesnt take long to lose track of the true importance of the underlying structure of
these potential signals. Heres how I approach it to ameliorate these problems.

ETF Tipping Point

A New Dynamic Volume Trend Indicator
I look at every single stock individually that makes up the constituent list of the ETF.
That means, for the SP500, I keep a running total throughout the day as to whether
there was more buying than selling going on. Every single trade, tick-by-tick.

A massive server farm digests and categorizes data from each constituent stock in all of

the ETFs we cover. This might beg the question: How do you know whether there was
more buying pressure or selling pressure on a single transaction?

I evaluate the Bid Price and the Ask Price of the trade and if the sale went off closer to

the ASK price, then the sellers were willing to hold out for a higher price and buyers
were willing to pay extra to insure that they got those shares. Conversely, if the sale went

off at the BID price, then it was the sellers who were willing to move their prices down
toward the buyers who were in control, able to force the hand of the sellers to reduce
their price.

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This then establishes either a positive or negative tick volume which, like Granvilles

original idea allowed us to set up with great confidence a more precise measure of where
the real power is all day long - With the Buyers or with the Sellers?

At the end of the day, we can now look at a losing day, but we also know that OnBalance it was actually a bullish or bearish move for the majority of the stock. At that

point we simply do a cumulative summation for the next 13 sessions and at the end of
that time we now have a pretty good idea of what percentage of stocks are advancing on
hidden power or failing despite rising prices.

At the end of the day, I know out of 500 stocks in the SP500 how many are on positive
footing (greater than 50% with more real accumulation) and how many are on a negative

stance. Using the synthetic On-Balance line (aka the ETF Tipping Point), I end up
with a high confidence level of trend in play or in flux.

Notice that this is all done without the use of moving averages. Those who have mentored
with me know that I absolutely have the greatest disdain for any indicator using moving
averages (meaning all of them) as a primary decision making tool.

By the time we get to about 5 hours into the market day, I have a pretty good idea of
what the end of the day result will be, irrespective of price. That is why most of the time

I will be able to take a glance and know what the end result will be on market close.
There is normally enough of an imbalance that it would be virtually impossible for the
dynamics to change so much in the last hour and a half of trading to change the signal
at that point.

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Since we have collected information over the previous 13 trading days, I also know

where each company within the ETF sits in terms of its positive or negative trend.
When it switches from Positive to Negative Balance (more than 50% on a negative
trend), we then have a SELL signal for that ETF and vice versa.

There are at least 5 different ways we can trade ETF signals. You can pick a method that
suits your temperament for risk/reward and Ulcer Index. Here are the basics:

Trade the underlying ETF: (Buying when bullish, Shorting when bearish).
Buy or Short the SPY.

Trade the Double ETF: (Like SSO double ETF when bullish or the SDS when
bearish)

Buy options on the underlying ETF: (Calls on the SPY when bullish, or Puts
on the SPY when bearish)

Buy options on the Double ETF: (Buy Calls on the SSO when bullish or Calls
on the SDS when bearish)

* Because the Double ETFs cover both sides of the market, we will always be
buying Call options for the direction we are trading. (We will help here by
actually providing the option for you to buy in the daily trading signals).

potential can increase remarkably if you want to put in a little extra work.

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Trade the Best in Show stocks in the individual component lists. Every day, we rank

all of the component stocks within the ETF by its performance against the underlying
index. For the SP500, we call the SPY zero, and then rank all 500 stocks by their

recent performance. Usually this means that you can find stocks that are outperforming
by 8-15 percent. If you are right on the direction of the ETF, these stocks are the
primary drivers for that gain and therefore will consistently give you better gains. These
are optional of course, and your profit

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Lets walk through the

whole process.
It just takes 3 Steps:

1. Watch for signals notifications after 12:30PM (PST) or 3:30PM (EST).

Use our text and email service to make it hands-off for you. You can trade the next

morning if you cant see or trade during the day, but you will lose some advantage in
returns.

2. Buy or Short the ETF:

Or buy call/puts. Or buy the Double ETF or Double Inverse ETF. Or you can buy
Call/Puts on the doubles.

3. Hold that position until you receive a signal to reverse, or until stopped out.
You could be in a cash position if your trade gets stopped out. In that case, wait for the

next signal, and re-enter the market. An ETF is either bullish or bearish. If you are only
comfortable playing to the upside, then only trade when you get a Bullish signal and
go to cash for that ETF when you get a Bearish signal.

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To recap, every day at 3:30 EST will send out an alert as to the status of where we
believe signals will be by the end of the trading day. This is posted on our blog, but we
will also send it to you via email and text message! And heres what you get:

This is the core of the ETF Tipping Point System. The daily alerts list the following:

Each of the nine ETFs that we cover

Current signal direction for Double ETFs

Current signal direction

Current Profit and Loss
Options to Buy

Depending upon your choice, you would either BUY the ETF or options on the ETF
or the suggested alternative double shares or their options. In the example above, the
DDM is the double ETF for the DOW Industrials.

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Notice that we have given you the suggested option. This is chosen by our proprietary
options engine and is the best trading choice at the time of the signal.

For current pricing, if you click on the option signal, you will be taken to Yahoo for 20
minute delayed bid/ask pricing. For order placement you need to consult your trading
platform for the latest up-to-date pricing. The purpose is to get you in the ball park.

Once again, here are the Single ETFs we cover:

Dow Industrials (DIA) put/call options available
SP500 (SPY) put/call options available
Banking Index (KBE) - put/call options available
Nasdaq (QQQ) - put/call options available
Oil Index (XOI) - put/call options available
Gold (We use HUI for our signals, but trade GLD) - put/call options available
Semiconductors (SMH) - put/call options available
Real Estate (IYR) - put/call options available
Materials (XLB) - put/call options available

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Double share or ULTRA share trading:

Dow Industrials
Bullish (DDM) Call options available
Bearish (DXD) - Call options available

Dow Industrials
Bullish (DDM) Call options available
Bearish (DXD) - Call options available

SP500
Bullish (SSO) - Call options available
Bearish (SDS) - Call options available

Banking Index
Bullish (UGY) - Call options available
Bearish (SKF) - Call options available

Oil Index
Bullish (DXO)
Bearish (DTO)

Gold Index
Bullish (DGP)
Bearish (DZZ)

Semiconductors
Bullish (USD) - Call options available
Bearish (SSG) - Call options available

Real Estate
Bullish (URE) - Call options available
Bearish (SRS) - Call options available

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Buying ETFs
with Options

We use our proprietary options engine to identify the best options available at the time of our
signal. To summarize how we select options, we look for options that are four to six months
out that are already in the money.
They also typically have a Delta of 70-75.
Our preferred method of trading is to use the second column which is options on the Double
ETFs. While the 2X dont always perform double the 1X index, they do generally perform
better.

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For those who have not traded options before, some words of caution and encouragement.
Done properly, I believe that options actually carry less risk than the underlying stock.
There are dozens of options courses you can take that run anywhere from $1,500 to $7,500
that will teach you basically the same thingHow to lose your money less slowly. By the time
newbies reach 6 months, 93% will never trade an option again, giving up their dreams of easy
riches. But we will still be around, and in a game that has 93% losers, that also means there is
7 percent keeping all of the money. And that is where we want to be!
What goes wrong when people trade options? Initially, everyone is obsessed with the fair value
of the option as it approaches expiration. You are taught to look for the cheap mispriced
options that will hopefully double their money in the last three weeks.
And so you plunge for 10 contracts of Acme Rubber that is out of the money with 3 weeks
to run. At 35 cents each, that equates to $350 to control the equivalent of 1,000 shares of
stock. Three weeks go by and your mispriced option is now worth 70 cents on expiration day.
You doubled your money and kick yourself for not buying $7,500 or $10,000 worth. The only
problem is that may be the last time you are lucky enough or talented enough to pick that
kind of winner. Just like first time Vegas gamblers you never win again.
I couldnt care less if an option is mispriced. I dont want to hold it until expiration. I only want
to rent it for a while and then I want to sell it to somebody else so THEY can hold it until
expiration.
I buy options that are at least 4-6 months away from expiration and I will NEVER hold it
closer than one month until expiration. I do this even if I only expect in the trade for a month.
I have to pay a premium to buy it this many months away, but I will get most or all of the
premium back when I sell it to the next person.

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By renting the stock by buying options this way, I am just using the option as a proxy for the
stock and I receive gains without the obligation. My risk is totally limited to my investment.
The number one mistake people make in buying options (outside of buying too close to
expirations, so they are forced to liquidate or take a total loss) is investing too much in the
option.
Lets say I was going to buy $10,000 of each ETF. If I bought all 9 ETFs, that would be
$90,000. Now, lets say instead, I took $9,000 or just 10% of that capital and invested it in
options to control the same number of ETF shares.
If I lost every single position through some fluke of bad luck, or maybe Goldman Sachs filed
for bankruptcy, I would lose a total of $9,000. If I used a 10 percent stop on the $90,000 equity
position would also lose $9,000a wash. But I only risked 10% of my capital to do it and I
live for another day.
When you buy far into the future, you get the majority if not all of your premium back AND
you get the gains you were looking for without the risk.
Most people look at daily options fluctuations and get strange beasts crawling around in the
pit of their stomachs. But if you evaluate your losses in terms of the fraction you have invested,
then there is no reason to lose sleep.
A position that you invested 10% ($1,000) of what you would have put into the equity
($10,000) that loses 30% on an option really cost you just 3% of $10,000 or $300. That means
I would have actually lost just 3% of my total available capital. I can do that all day. The lesson?
Do not over-invest!

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Buy enough to return to you what you would expect to make on a stock-only purchase. There
is enough compounded leverage in the system to make everything you need. If that makes
your head swim and you dont want to leap into options, then just note the bid/ask price
when you buy the underlying and track what your potential profit/loss would be if you traded
options. You will soon become a believer.

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What About
Best-In-Class
Buying?
Lets say we get a signal to BUY in the HUI. We know that there are 15 stocks within the
HUI, so this Basket allows us to spread the risk among 15 stocks, so we cant get into too
much trouble. The problem is that we have bought into the mediocrity of the index. While
we have some hot performers leading the pack, there are also some dogs degrading overall
performance. The real question then becomes How do I pick the best stock in the sector to
purchase?
Intuitively I know that if a sector has 18-30 stocks, there will be some superstars and there will
be some dogs. What we want to find out is how the individual stocks have been performing
when the sector has been rallying, and pick the best of those stocks. If we buy the entire
sector, which is certainly easier, we are buying the dumbed-down version that also includes
several dogs, thus lowering the returns on average. Out of 20 stocks within the ETF, there are
probably about a half-dozen superstars that are responsible for most of the gains.
Back in November 2007, the Nasdaq Tech Index was up 26% for the year. 76 percent of the
gains in that 100 stock index were just from 4 stocks (AAPL, GOOG, AMZN, and RIMM).
That means if you bought the QQQ, you had at least of the stocks underperforming and
pulling down the performance of that ETF! So, how do you find these superstars when the
entire sector is moving to the upside?

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Notice the constituent stocks in the DIA are ranked by their performance, so its easy to
separate the superstars from the dogs. I want to spread the risk, so I buy the top 3 superstars
(AA, CVX, BA). Any one of these stocks can run into trouble, so I buy 2 or 3 of the best and
if one gets in to trouble, then the others benefit as they take up the slack in the investor pool.
On the far right column of the Components screen there is a column for Options. Each
stock with options has a diamond shaped icon in that column. By clicking on the appropriate

diamond, you will be taken to a page where we will give you the best options to BUY

right now. Note that the best options might change every day, so dont expect to see the same
option listed there that you purchased the previous day.

I still advocate buying more than one of the leaders regardless of which sector you trade,
because there are always occasional slips and you dont want all of your eggs in one basket. If
you have 3 eggs in your basket, and you lose one of them, then the others will likely pick up
the slack with better performance.

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How are the stocks ranked? We look over the past 10, 15, 20 and 30 days and weight the gains
in each of those ranges with the heaviest weighting given to the past 10 days, and then we
halve the gains for each successive period. Add them together and rank each stock against the
index. Simple as that. You will generally see 15 percent better gains using the Best-In-Class
stocks as opposed to simply buying the ETF.
This system is normally too volatile to chase and there is not any time to wait for confirmation.
You will notice in the closed trades list that the average trade length is about 12 days, but there
are quite a few trades that lasted 1-4 days. Right now, we are in an across the board advance
which is market driven, not sector driven, so without doing some underlying analysis it would
be counterproductive. The idea was to provide people a completely mechanical vehicle. If you
have the skill set to reliably forecast market trends, then you could pick and choose which
signals to take and when to take them. For the most part, that defeats the proposition of
removing emotion from trading.

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Lets go back to our original table from January 1 2007 to April 2014:

It is important to note that the results shown here were based solely on single ETFS. There
were no Double ETFs, Options or Best-In-Class trades influencing these returns. This is
as basic as it gets.
We picked the period starting January 2007 so that it would encompass a raging bull market
until November 2007, when the market began its horrific slide leading to the recover rally
off the bottom in March 2009. In back testing, we have gone back as far as 1993 for some
of the ETFs. We selected 2007 because we have data on the ETFs we cover back through
that time period.
As this system was developed, I ran it on SP500 data going back to 1966. Only then did I
run it against the other 8 ETFs you see without any modification or compensation for the
sector being traded. We only took the history for the rest of the ETFs back to 2007 because
it was the first time there were viable and tradable ETFs for across the board, apples to
apples comparison with sufficient volume. More ETFs may be added in the future as they
become viable.

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Many more changes will be made to this system and feedback is always welcome. Please let us
know about any enhancements that you would like to see, and the will be added to the to do
list if they provide benefit for all!
Be sure to tune in for an actual 90 minute demonstration of the ETF Tipping Point System
by clicking the link below:

http://www.etftippingpoint.com
Warmly,

Kirt Christensen
122 N. Raymond,Suite 3

Spokane Valley, WA 99206

509-720-7867
(Feel free to call the office if you have any questions, or if youre in the area, our office is less
than a block off of Sprague, the main road running through Spokane Valley, so were easy to
find!)
PS - Yes, you can trade this in retirement accounts (ROTH IRAs, Regular IRAs, CoverDell
IRAs, some 401ks, etc.)Yes, it will work on small amounts of capital as well.I turned a measly
$3,000 in my 3 year olds education IRA into $4,500 in 120 days -- and thats just the beginning.
PPS - Yes, its safe, as far as investments go, well talk more about it, but were doing the exact
same thing that an investment advisor would tell you to do...BUT were not just doing the
buy and hold for 30 years.Were taking advantage of BOTH sides of the market.

Consult your own investment advisor, Im not a registered investment advisor,

nor ever want to be :)

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Disclaimer:
ETFTippingPoint.com is not an investment advisory service, nor a registered investment advisor
or broker-dealer and does not purport to tell or suggest which securities or currencies customers
should buy or sell for themselves.
The analysts and employees or affiliates of Company may hold positions in the stocks, currencies
or industries discussed here. You understand and acknowledge that there is a very high degree of
risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and
all affiliates of Company assume no responsibility or liability for your trading and investment results.
Factual statements on the Companys website, or in its publications, are made as of the date stated
and are subject to change without notice. It should not be assumed that the methods, techniques,
or indicators presented in these products will be profitable or that they will not result in losses.
Past results of any individual trader or trading system published by Company are not indicative of
future returns by that trader or system, and are not indicative of future returns which can be realized
by you. In addition, the indicators, strategies, columns, articles and all other features of Companys
products (collectively, the Information) are provided for informational and educational purposes
only and should not be construed as investment advice. Examples presented on Companys
website are for educational purposes only. Such set-ups are not solicitations of any order to buy or
sell. Accordingly, you should not rely solely on the Information in making any investment. Rather,
you should use the Information only as a starting point for doing additional independent research in
order to allow you to form your own opinion regarding investments.
You should always check with your licensed financial advisor and tax advisor to determine the
suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT
LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT
REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER
SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED,
THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY,
OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING
PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED
WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY
ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE
SHOWN.

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