VERY IMPORTANT Before you start you have to follow these instructions to insure that the strategy is working properly:

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Elvin Pearson
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Volatility Pivots User Guide help@volatilitypivots.com VERY IMPORTANT Before you start you have to follow these instructions to insure that the strategy is working properly: 1.

1 Volatility Pivots User Guide VERY IMPORTANT Before you start you have to follow these instructions to insure that the strategy is working properly: 1. This strategy works with a special Session Setting. Please download and install this Session Setting from here: 2. The strategy needs the following symbols data: VXX, SPY, QQQ and $VIX.X. You need to go to Software and Data Subscriptions page in TradeStation web site and to subscribe to NYSE, NASDAQ and CBOE Indices (free of charge) data. If you are already receiving the data then you do not need to do anything.

2 Strategy description General: Volatility Pivots is a strategy which we actually trade with real money and directed to swing traders, long term investors and fund s managers. The strategy is the product of more than 17 years of combined experience in developing trading systems with specialty in volatility field. The strategy analyzes the market volatility as reflected from the major market indexes, from the "fear" index and from ETNs data as well. The strategy trades the VXX symbol long and short, with the trend. This is a dynamic trading which aims to take advantage of the short term trends in the volatility by doing trades at the early stage of the movement. Strategy: The strategy analyze the market volatility as reflected from the major market indexes, from the "fear" index and from ETNs data as well. The strategy trades the VXX symbol long and short, with the trend. This is a dynamic trading which aims to take advantage of the short term trends in the volatility by doing trades at the early stage of the movement. The strategy developed to trade differently in different fear environment. When the volatility is increasing then the strategy trade long volatility and holds positions during intraday only. When the volatility is decreasing then the strategy trade short volatility and can hold position overnight. The strategy is a low frequency algorithmic trading which buy and sell securities related to volatility in the US markets. The strategy is designed to identify rising or falling trends and to trade with the trend. The system is based on statistical and mathematical models and implements the trading orders automatically. The trading is conducted by ETNs and Indexes which directly and inversely follow the future contracts on the VIX index, also known as the fear index, for the short and medium terms. Risk Management: The strategy can trade up to 2 positions at the same time. The strategy composed from one rules group for entry and from few rules groups for exists which reduce the risk by exit as soon as possible after the volatility starting to be changed. The strategy close position in one or two trades and can trade again if only part of the funds is invested. The default Stop Loss is 1.5% and can be modified under Format Strategy. Execution: All the orders are market orders. The strategy works in regular trading hours between 9:30 AM and 04:00 PM ET. Minute Bar: The strategy run under 60 minute.

This number is in percentage and represents how many percent the user agree to lose in Long position. 3. Short_SL_Percent: The default is 1.5.

3 Format Strategy: The user can control and change the following inputs in the Format Strategy. 1. Trade_Amount: The default is $100,000. This number represents how much money the strategy will invest in the next trade. 2. DT_LongSL_Percent: The default is 1.5. This number is in percentage and represents how many percent the user agree to lose in Long position. 3. Short_SL_Percent: The default is 1.5. This number is in percentage and represents how many percent the user agree to lose in Short position. 4. ShortProfit_Percent: The default is 4. This number represents the take profit percentage in Short trades. 5. LongProfit_Percent: The default is 20. This number represents the take profit percentage in Long trades. Strategy Properties for All Strategies on this Chart: The user must mark the box near Allow up to [5] entry orders in the same direction as the currently held position. You need also to mark the box near regardless of the entry that generated the order. See below:

4 Disclaimer: NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS ARE YOUR OWN. THE RESULTS MAY HAVE UNDER- OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT

5 REPRESENT ACTUAL TRADING. SIMULATED TRADING PROGRAMS ARE SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

S-Enrooter 1.0. Automatic trading strategy USER GUIDE. Version 1.0

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