| All the material in this section is based on hypothetical performance. The following disclaimer should be carefully reviewed. Additionally, prospective clients should be aware that futures trading involves considerable risk, and you can lose money. | ||||||
| NOTICE: "HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. | ||||||
Aberration Global Portfolio | ||||||
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The ABERRATION Global Portfolio is suited for accounts that are larger than $100,000. The portfolio is diversified across the commodity groups to gain exposure in uncorrelated markets. The commodities in each group have been carefully chosen for their profitability to risk characteristics. The portfolio is: Corn, Kansas City Wheat, Bean Oil, Live Cattle, Cotton, Sugar, Lumber, Coffee, Palladium, London Aluminum Alloy, London Copper, London Nickel, Crude Oil, Natural Gas, Propane, Heating Oil, Unleaded Gas, the Dollar Index, Japanese Yen, Swiss Franc, British Pound, Euro-Currency, Mexican Peso, Canadian Dollar, T-Notes, Euro-Bund, Two-Year Notes, Five-Year Notes, Eurodollar, Australian Bond, British Long Gilt, Muni-Bond, and the Nikkei. The following graph shows the return risking two percent of equity on each trade and implementing the profit-taking strategy.  Global Portfolio The portfolio and strategy had the following performance metrics:
This example illustrates the power of implementing the money management strategies available to the large-account investor. He can achieve a very high rate of return for a relatively low max annual drawdown. Moreover, he can adjust the percentage of equity risked to either increase his return or lower his drawdown until he achieves a risk/reward scenario suitable to his trading temperament. If, for example, a max drawdown of over 30 percent and an average max drawdown of almost 17 percent is too high for him, he can lower the amount risked and have lower expected drawdowns. Conversely, if he can stand more risk, he can up the amount risked and achieve a higher return. The graph compares average annual return and average max drawdown for a spectrum of percent of equity risked.  Global Portfolio with Profit-Taking, Risk Versus Reward This figure illustrates a further point. As the percent of equity risked increases, return increases at a
faster rate than drawdown. This can be seen in the slopes of the two lines on the graph, the return line is
much steeper than the drawdown line. This is an important point. It means that: THE MORE DRAWDOWN YOU CAN STAND, THE GREATER THE RELATIVE REWARD.
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