Description of the Strategies

The trading strategies of the 3G-I trading program are comprised of a set of statistical and mathematical calculations, utilizing real time price data to anticipate future price movement in currency pairs. The 3G-I trading strategies are different from most other mathematical models used in technical trade analysis in the following key areas:

• ​3G-I is non-symmetrical in its statistical price distribution calculations (most statistical analyses are symmetrical);
• 3G-I does not assume randomness in the price data sequence or flow; and
• 3G-I has a unique approach to expected value and considers both the magnitude and sequence of potential losses in a series of trades (Based on Kelly’s Formula).

Emphasis on Loss Avoidance

The Advisor employs three measures in it its attempts to manage risk or reduce the size and number of trade losses.

First, the Advisor trades only 10-35% of investor total equity.  The balance is held in a reserve to avoid catastrophic loss.  In addition, the Advisor employs very tight stop-loss orders in an attempt to only expose to loss a maximum of 3-5% of the investor equity committed to each trade.  For example, an investor account with equity totaling $100,000 would have a range of $10,000 to $35,000 entered into trade(s) and, of that trade amount, stop-loss orders are used in an attempt to expose only 3-5% of that trade amount to potential losses.

Second, the Advisor is an active or “day” trader with trade durations of only minutes or hours and does not hold open trade positions overnight.

Third, The Advisor practices selective trade entry and exit.  The Advisor will only enter a trade when the statistical calculations of the particular strategy indicate a high probability of profitable results. This means that there can be periods when no trades are executed.

Currency Pairs Traded

The 3G-I trading program focuses on the most statistically reliable and most liquid currency pairs in its trade execution.  The four pairs traded in the program are the Euro dollar/ US dollar (EUR/USD), US dollar/Japanese yen (USD/JPY), British pound/US dollar (GPD/USD), and the Euro dollar/Japanese yen (EUR/JPY).  The Advisor has the right to add or delete currency pairs from this mix at his discretion.

Trading Program Overview

The Advisor’s business plan includes continued refinement and testing of its program.  Therefore, the Advisor retains the right to revise any methods or strategy, including the technical trading factors used and the money management principle applied.  The Advisor will do this without your prior approval if the Advisor determines that the changes are in the best interest of the investor’s account.  The Advisor’s trading program is proprietary and confidential, and the descriptions herein are, of necessity, general and are not intended to be exhaustive.  Consequently, you will not be able to determine the full details of the program, or whether the program is being followed.  There can be no assurance that any trading strategy of the Advisor will produce profitable results or will not result in losses.