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.”

Aztec is a shorter-term trend-following system that is profitable across all the commodity groups. As with Aberration, I-Master is a perfect compliment to Aztec because it's equity curve is very lowly correlated with Aztec's (less than 0.05 on a scale of 0 to 1).

The Aztec Starter Portfolio is suitable for accounts in the $20,000 to $40,000 range. It contains the following commodities: Kansas City Wheat, Pork Bellies, Cotton, Copper, Crude Oil, the Japanese Yen, Natural Gas, and 10-Year Notes. The following graph shows two equity curves: the Aztec Starter Portfolio performance with a risk level of $2,000, and Aztec trading the Starter Portfolio with a risk level of $2,000 and I-Master trading one E-Mini contract.

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 $18,005 to $37,575 per year (more than doubling profit) with a small decrease in average max drawdown ($16,047 versus $17,052).

The Aztec Mid-Size Portfolio is suitable for accounts in the $30,000 to $50,000 range. It contains the following commodities: Kansas City Wheat, Corn, Rough Rice, Pork Bellies, Cotton, Coffee, Lumber, Copper, London Nickel, Unleaded Gas, Crude Oil, Natural Gas, the Japanese Yen, British Pound, 10-Year Notes, and the Euro-Nathaniel Bond. The following breakout compares the Aztec Mid-Size Portfolio performance with Aztec trading the Mid-Size Portfolio and one E-Mini each of the S&P and NASDAQ. A risk level maximum of $2,000 is used for a Aztec trades.

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 $23,542 to $75,991 per year (more than 300 percent increase) with a decrease in average drawdown ($22,078 versus $21,991).

The Aztec Full-Size Portfolio is suitable for accounts in the $60,000 to $100,000 range. It contains the following commodities: Kansas City Wheat, Corn, Wheat, Rough Rice, Pork Bellies, Cotton, Coffee, Lumber, Copper, London Nickel, London Aluminum, Unleaded Gas, Crude Oil, Natural Gas, Heating Oil, Japanese Yen, British Pound, Dollar Index, T-Notes, the Euro-Nathaniel Bond, and US Bonds. The following breakout compares the Aztec Full-Size Portfolio performance with a combination of Aztec trading the Full-Size Portfolio and I-Master trading two E-Mini contract each of the S&P and NASDAQ.

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 $28,721 to $92,987 per year, or over 300 percent, with an average drawdown increase of about 10 percent.

The Aztec 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, 1 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: Kansas City Wheat, Corn, Wheat, Rough Rice, Pork Bellies, Lean Hogs, Cotton, Coffee, Lumber, Copper, London Nickel, London Aluminum, Palladium, London Aluminum Alloy, Unleaded Gas, Crude Oil, Natural Gas, Heating Oil, Propane, Japanese Yen, British Pound, Dollar Index, Swiss Franc, Euro-Currency, Australian Dollar, T-Notes, the Euro-Nathaniel Bond, US Bonds, Five Year Notes, Mini Bonds, Australian Bond, Long Gilt, Spanish Bond, Swiss Bond, Cimex JOB, and the Nikkei stock index. The following breakout compares the Aztec Global Portfolio performance with a 1 percent risk per trade, and Aztec and I-Master with a 1 percent risk per trade. I-Master is trading the S&P500, 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 63.9 to 111.5 percent per year, (almost a doubling), with a slight decrease in average drawdown (from 18.2 percent to 16.0).