I-MASTER
INDEX TRADING SYSTEM

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 is a longer-term trend-following system that is profitable across all the commodity groups. Because of it's longer trend-following nature, Aberration shouldn't be traded on US stock indices. I-Master is a perfect compliment to Aberration because it's equity curve is very lowly correlated with Aberration's (less than 0.05 on a scale of 0 to 1).

The Aberration Starter Portfolio is suitable for accounts in the $10,000 to $30,000 range. It contains the following commodities: Corn, Live Cattle, Cotton, Sugar, Palladium, Crude Oil, the Dollar Index, and 10-Year Notes. The following breakout compares the Aberration Starter Portfolio performance versus Aberration and I-Master trading one E-Mini S&P contract. The Aberration trades were limited to those with $3,000 or less of risk.

These results show that by trading one E-Mini S&P contract with I-Master in conjunction with the Aberration Starter Portfolio, profitability is increased from $12,867 to $32,087 per year (more than doubling profit) with a small decrease in average max drawdown ($12,747 versus $12,867).

The Aberration Mid-Size Portfolio is suitable for accounts from $30,000 to $50,000. It contains the following commodities: Corn, Rough Rice, Live Cattle, Cotton, Sugar, Lumber, Palladium, London Al. Alloy, Crude Oil, Natural Gas, the Dollar Index, Yen, T-Notes, and the Euro-Nathaniel Bond. The following breakout compares the Aberration Mid-Size Portfolio performance versus Aberration trading the Mid-Size Portfolio and I-Master trading one S&P E-Mini and one NASDAQ E-Mini contract.

These results show that by trading one E-Mini contract of the S&P and NASDAQ with I-Master in conjunction with the Aberration Mid-Size Portfolio, profitability is increased from $21,561 to $74,006 per year (more than 300 percent increase) with a decrease in average drawdown ($19,235 versus $16,543).

The Aberration Full-Size Portfolio is suitable for accounts in the $50,000 to $100,000 range. It contains the following commodities: Corn, Rough Rice, Kansas City Wheat, Live Cattle, Cotton, Sugar, Lumber, Coffee, Palladium, London Aluminum Alloy, London Copper, Crude Oil, Natural Gas, Propane, the Dollar Index, Japanese Yen, Swiss Franc, T-Notes, the Euro-Nathaniel Bond, the Euro-Bund, and the Nikkei stock index. The following breakout c ompares the Aberration Full-Size Portfolio performance, and Aberration trading the Full-Size Portfolio and I-Master trading two S&P and NASDAQ E-Mini contracts.

These results show that by trading two S&P and NASDAQ E-Mini contracts of I-Master in conjunction with the Aberration Full-Size Portfolio, profitability is increased from $29,035 to $93,301 per year, or over 300 percent, with an average drawdown remaining the same.

The Aberration Global Portfolio is suitable for accounts greater than $100,000. The portfolio is traded with two money-manager strategies: a fixed percent of equity is risked on each trade (for this example, 2 percent is used) and profit-taking is used on the multiple lot trades to smooth the equity return. The Global Portfolio contains the following commodities: Corn, Rough Rice, 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, the Euro-Nathaniel Bond, the Euro-Bund, Five Year Notes, Two Year Notes, Australian Bond, Canadian Bond, Mini-Bond, Spanish Bond, and the Nikkei stock index. The following breakout compares the Aberration Global Portfolio performance with a 2 percent risk per trade, and Aberration and I-Master with a 2 percent risk per trade. In this case, I-Master is trading S&P, NASDAQ, and Russell 2000 contracts. Note that return and drawdown are expressed in percentage terms.

These results show that by trading I-Master system in conjunction with the Aberration Global Portfolio, profitability is increased from 58.3 to 166.5 percent per year, (almost a doubling), with a slight decrease in average drawdown (from 22.1 percent to 19.8).