Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bull 24 Cheap 31 Puts Buy Long Call

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1 FX Trading Strategies for November 1, 2018 (based on closing prices for October 31, 2018) FX Pair 1 Volatility 2 Skew 3 Correlation 4 Trades Best Trade Today oqti oqvi oqsi oqti vs. oqvi AUD/USD Bull 24 Cheap 31 Puts Buy Call GBP/USD Flat 36 Cheap 15 Puts Wait Butterfly USD/CAD Bull 36 Cheap 17 Puts Buy Call Spread EUR/USD Bear 90 Rich 33 Puts Sell Short Call Spread USD/JPY Bear 71 Rich 20 Puts Sell Short Call Spread USD/CHF Bull 58 Fair 41 Even Buy Call Spread 1 (oqti): OptionQuantFX Indicator ranges from 0 to 100. Readings below 40 indicate the spot market is bearish; above 60 the spot is bullish. 2 Volatility (oqvi): OptionQuantFX Volatility Indicator ranges from 0 to 100. Readings below 40 indicate options are undervalued; above 60 options are overvalued. 3 Skew (oqsi): OptionQuantFX Skew Indicator ranges from 0 to 100. Readings below 40 indicate puts are more expensive than calls; above 60 calls more expensive. 4 Correlation (oqti vs. oqvi): R 2 correlation coefficient ranges from -1 to +1. Negative readings indicate volatility rises when the spot falls; positive the opposite.

2 Trading Strategies Based on Closing Prices for November 1, 2018 Page 2 of 10 Puts Trade Volatility Calls Entry Price 8 Exp Option Trade oqti 1 Limit Net Stop Net oqvi 2 oqsi 3 Buy Sell Buy Sell Pips $ Limit $Profit Stop $Loss AUD/USD (100,000 Australian Dollar vs. US Dollar) Buy Jan Call (221) GBP/USD (100,000 British Pound vs. US Dollar) Wait 3-Jan Butterfly , (385) USD/CAD (100,000 US Dollar vs. Canadian Dollar) Buy Jan Call Spread (185) EUR/USD (100,000 Euro vs. US Dollar) Sell Jan Short Call Spread (.00364) (364) (.00096) 268 (.00556) (192) USD/JPY (100,000 US Dollar vs. Japanese Yen) Sell Jan Short Call Spread (.365) (323) (.096) 238 (.557) (170) USD/CHF (100,000 US Dollar vs. Swiss Franc) Buy Jan Call Spread (183) 1 oqti: OptionQuantFX Indicator ranges from 0 to 100. Readings below 40 indicate the spot market is bearish; above 60 the spot is bullish. 2 oqvi: OptionQuantFX Volatility Indicator ranges from 0 to 100. Readings below 40 indicate options are undervalued; above 60 options are overvalued. 3 oqsi: OptionQuantFX Skew Indicator ranges from 0 to 100. Readings below 40 indicate puts are more expensive than calls; above 60 calls more expensive. 4 Trade: Market orders for spot trades ("!" indicates a strong signal). OB/OS indicates an overbought/oversold market. No spot trades at OB or OS levels. 5 : Liquidate at a profit when the trade profits this much or the oqti reverses to Buy/Sell, or (for option trades) when Days to Expiration falls to less than : Liquidate at a loss when the trade loses this much or the oqti reverses to Buy/Sell, or (for options trades) when Days to Expiration falls to less than : Strongest combination of trade indicators today. 8 Entry Price: Limit ("or better") orders for option trades. Does not include commissions. See complete trade liquidation guidelines on page 10.

3 Trading Strategies Based on Closing Prices for November 1, 2018 Page 3 of Volatility Puts Calls Entry Price AUD/USD (100,000 Australian Dollar vs. US Dollar) Buy Jan Call (221) AUDUSD AUDUSD Call Profit & Loss +.720C 3-Jan 3-Dec 1-Nov AUDUSD Volatility oqhv AtM IV 8.67% % % 8.20% % 7.00% AUDUSD Skew vs. Delta 1Y Avg AtM % 1.30% 1.10% 0.90% 0.70% 0.50% 0.30% 0.10% -0.10% -0.30% -0.50% AUDUSD

4 Trading Strategies Based on Closing Prices for November 1, 2018 Page 4 of Volatility Puts Calls Entry Price GBP/USD (100,000 British Pound vs. US Dollar) Wait 3-Jan Butterfly , (385) GBPUSD GBPUSD Butterfly Profit & Loss C/-1.315C P/-1.235P 3-Jan 3-Dec 1-Nov GBPUSD Volatility oqhv AtM IV 10.19% % 8.70% % 6.70% % GBPUSD Skew vs. Delta 1Y Avg 2.20% 1.90% 1.60% 1.30% 1.00% 0.70% 0.40% 0.10% -0.20% -0.50% AtM % GBPUSD

5 Trading Strategies Based on Closing Prices for November 1, 2018 Page 5 of Volatility Puts Calls Entry Price USD/CAD (100,000 US Dollar vs. Canadian Dollar) Buy Jan Call Spread (185) USDCAD USDCAD Call Spread Profit & Loss C/-1.345C 3-Jan 3-Dec 1-Nov USDCAD Volatility oqhv AtM IV 6.73% % % 6.70% 6.30% % USDCAD Skew vs. Delta 1Y Avg 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% AtM % USDCAD

6 Trading Strategies Based on Closing Prices for November 1, 2018 Page 6 of Volatility Puts Calls Entry Price EUR/USD (100,000 Euro vs. US Dollar) Sell Jan Short Call Spread (.00364) (364) (.00096) 268 (.00556) (192) EURUSD EURUSD Short Call Spread Profit & Loss C/-1.145C 3-Jan 3-Dec 1-Nov EURUSD Volatility oqhv AtM IV 7.50% % % 6.80% % % EURUSD Skew vs. Delta 1Y Avg AtM % 1.10% 0.90% 0.70% 0.50% 0.30% 0.10% -0.10% -0.30% -0.50% EURUSD

7 Trading Strategies Based on Closing Prices for November 1, 2018 Page 7 of Volatility Puts Calls Entry Price USD/JPY (100,000 US Dollar vs. Japanese Yen) Sell Jan Short Call Spread (.365) (323) (.096) 238 (.557) (170) USDJPY USDJPY Short Call Spread Profit & Loss C/-114.0C 3-Jan 3-Dec 1-Nov USDJPY Volatility oqhv AtM IV 6.93% % % 6.30% % % -1 USDJPY Skew vs. Delta 1Y Avg 2.40% 2.10% 1.80% 1.50% 1.20% 0.90% 0.60% 0.30% 0.00% -0.30% AtM % USDJPY

8 Trading Strategies Based on Closing Prices for November 1, 2018 Page 8 of Volatility Puts Calls Entry Price USD/CHF (100,000 US Dollar vs. Swiss Franc) Buy Jan Call Spread (183) USDCHF USDCHF Call Spread Profit & Loss C/-1.030C 3-Jan 3-Dec 1-Nov USDCHF Volatility oqhv AtM IV 6.47% 7.20% % 6.20% % 5.20% % USDCHF Skew vs. Delta 1Y Avg 2.30% AtM % 1.70% 1.40% 1.10% 0.80% 0.50% 0.20% -0.10% -0.40% USDCHF

9 Trading Strategies Based on Closing Prices for November 1, 2018 Page 9 of 10 OptionQuantFX Index (oqti) OB Buy! Buy Wait Sell Sell! OS Straddle Call Put Strangle OptionQuantFX Trade Engine AUD Call Spread CAD Butterfly GBP Put Spread Short Put Spread (oqsi > 50) or Call Spread (oqsi < 50) Iron Condor Put Spread (oqsi > 50) or Short Call Spread (oqsi < 50) CHF Short Iron Condor Cheap! Cheap Fair Rich Short Call Spread Short Butterfly OptionQuantFX Volatility Index (oqvi) JPY Short Put Spread EUR Rich! OptionQuantFX Skew Index (oqsi) Calls! Calls Even Puts Puts!

10 OptionQuantFX Trade Liquidation Guidelines Consider liquidating trades when 1) the trade has lost an amount equal to level at the time the trade was initiated, or 2) the trade has profited by an amount equal to level at the time the trade was initiated, or 3) the Trade column switches to Wait/Sell (for bullish trades) or Wait/Buy (for bearish trades), or 4) the Trade column switches to Wait (for neutral trades) or Buy/Sell, or 5) the Days to Expiration falls to less than 15 (for option trades) OptionQuantFX is a product of The Applied Research Company 53 West Jackson Boulevard Suite #337 Chicago, IL USA Monadnock Building info@appliedresearch.com