This eminiworld TREC presentation is intended only for professional traders and Portfolio Managers with the interest in 100% quantitative and systematic trading model. 2
Who we are at eminiwold? eminiworld team develops automated trading systems with limited optimization, a real-time history and verifiable results. We provide Portfolio Managers with innovative absolute return strategies that have the potential to enhance investment portfolios with strong uncorrelated returns through time. Experience is the one automated trading systems tool which cannot be bought, studied or learned. Experience can only be earned earned over time and usually at a cost. eminiworld team consist of people from wide range of intellectual backgrounds with proven success in fields such as Mathematics, Artificial Intelligence, IT and Finance. Our developers and traders have experience, earned by researching and executing futures trading systems, trading our own accounts and servicing clients. eminiworld team have started from trading few thousand dollars while live testing our algorithmic strategies. At the moment our clients trade millions of dollars using our trading approach and our proprietary trading strategies. 3
At eminiwold we believe in: Our core trading philosophy is that strategies should capture enduring and explainable market participant behavior. We strongly believe in diversifying risk in every way possible. We also think that risk is best controlled by taking a large number of small trades versus making a few large bets on a small number of trades. We have constructed model development process on five key pillars: Markets are fundamentally inefficient across multiple timeframes. Global liquidity drives market behavior across asset classes. We believe systems outperform discretion. Models must be simple and repeatable. Models must be grounded in experience. 4
What is eminiwold TREC model? eminiworld TREC is a 100% quantitative and systematic trading model. No trading discretion is required on the user's part at any time. Every trader, CTA or fund manager is able to adopt eminiworld TREC trading model to his risk and portfolio management rules and style. eminiworld TREC model trades balanced basket of model instances. All model instances are designed to trade profitably wide range of instruments across different asset classes. Basket of model instances is held together because its statistical profile delivers a desired goal, such as hedging a risk or trading it, which cannot be achieved through the individual constituents or even subsets of them. 5
Main eminiworld TREC advantages: Reduces market impact; Ease of use; Increased trader productivity; Consistency of execution; Anonymity; Portfolio customization capabilities; Multi asset capabilities; Diversification. eminiworld TREC model delivers crises Alpa Whether you trade stock index, commodity, currency or interest rate futures, eminiworld TREC model is adaptable, liquid, systematic and void of long equity bias making it less susceptible to the trap which almost all investors fall into during an equity crisis. 6
eminiwold TREC on TradeStation Strategy Network eminiworld team is a member of TradeStation Strategy Network Developer Program. For the moment part of eminiworld TREC model is available on TradeStation Strategy Network. Model could be tested free of charge in a form of six portfolios (links below): eminiworld TREC_CURRENCIES eminiworld TREC_DAX eminiworld TREC_EQUITIES eminiworld TREC_TREASURIES eminiworld TREC_METALS eminiworld TREC_GRAINS We will extend free trial period for everyone who trades futures professionally. Please contact us for more details. 7
eminiwold TREC description eminiworld TREC is a 100% quantitative and systematic trading model. No trading discretion is required on the user's part at any time. eminiworld TREC trades futures during the liquid trading hours in Europe and the USA. The model trades Gold, Silver, Copper, Platinum, German DAX, Mini Russell 2000, Mini Dow Jones, 30-YR T-BOND, 10-YR T-NOTE, 5-YR T-NOTE, 2-YR T-NOTE, Corn, Soybeans, Euro Currency, British Pound and Australian Dollar. The strategy is a short to mid-term trend following strategy that has been designed to capture relatively small futures price moves using few rules based signal-generating logic. Every position is opened through market order and is closed through three stop orders (fixed stop loss, time stop, trailing stop) or limit order (Profit Target). Model's average trading frequency: circa 80 times per day per all instruments traded. The strategy is always the same and applied on charts that are plotted in intraday (3 min, 5 min, 9 min, 11 min, etc) format. However each chart has its unique set of inputs for the same strategy. This multi asset, multi-time frame and multi-input sets approach ensures significantly more stable performance, reduced risk and low or negative correlation between instruments traded. In addition to low correlation between instruments traded, the model displays a low or negative correlation with both traditional (portfolios of stocks and bonds) and alternative investments (hedge and CTA funds). 8
eminiwold TREC_6 PORTFOLIOS Performance We believe that risk is best controlled by taking a large number of small trades versus making a few large bets on a small number of trades. For all serious traders we insistently recommend trading all eminiworld TREC portfolios simultaneously. Accumulated performance of six eminiworld TREC portfolios available on TradeStation Strategy Network presented below. 9
eminiwold TREC_6 PORTFOLIOS Performance 750 % PERFORMANCE TREC 6 PORTFOLIOS DJCS HFI (MF) 700 % 650% 600% 550% 500 % 450 % 400% 350% 300% 250 % 200 % 150% 100% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD 2003 0.40% 0.38% 0.14% 3.77% 3.66% 0.88% 0.36% 1.89% 3.27% 2.10% 2.99% 4.03% 23.87% 2004 1.75% 2.67% 6.71% 1.96% 0.87% 4.47% 0.99% 3.67% 3.32% 0.68% 1.91% 2.71% 31.71% 2005-0.49% 3.74% 0.37% 0.95% 5.41% 2.97% 1.07% 1.73% 2.21% 0.95% 1.74% 3.80% 24.43% 2006 4.98% -0.22% 5.01% 5.35% 6.68% 6.26% 4.54% -0.07% 2.74% 7.78% 3.92% 0.33% 47.30% 2007 5.17% 6.00% -1.37% 3.08% 3.78% 5.57% 5.45% 5.53% 10.18% 3.04% 5.84% 8.01% 60.27% 2008 10.66% 14.25% 5.74% 8.91% 5.73% 11.39% 6.12% 8.56% 11.75% 10.64% 9.97% 15.08% 118.81% 2009 8.05% 5.84% 11.41% 8.49% 6.96% 11.34% 10.56% 8.70% 9.73% 7.57% 6.34% 5.61% 100.59% 2010-1.10% 4.93% 4.19% 7.14% 4.21% 3.72% 9.52% 2.72% 8.50% 7.70% 7.18% 4.96% 63.64% 2011 5.92% 8.53% 8.18% 8.61% 3.11% 2.80% 6.59% 8.11% 4.00% 5.92% -4.04% 2.20% 59.94% 2012 6.03% 4.46% 4.12% 3.29% 0.15% 11.40% 10.32% 4.75% 44.52% *Performance is based on trading one contract per TREC instance. All figures are calculated on monthly data in percent of the initial account size *TREC 6 PORTFOLIOS performance is calculteded from 3.500.000 USD initial account size 10
eminiwold TREC_6 PORTFOLIOS Performance 30-YR T-BOND 5-YR T-NOTE 10-YR T-NOTE SOYBEANS (CBOT) 2-YR T-NOTE BRITISH POUND AUSTRALIAN DLR. EURO CURRENCY GOLD (COMEX) Profit / Year 59.7% Best Month 15.1% Monthly Volatility 3.6% Worst Month -4.0% Sharpe Ratio Ann. 4.56 Avg. Month 5.0% CORN (CBOT) MINI DOW JONES ($5) MINI RUSSELL 2000 (ICE) DAX SILVER (COMEX) COPPER (COMEX) PLATINUM (NYMEX) Net Profit 575.1% Best 12 M. 118.8% YTD 44.5% Best 24 M. 221.8% Last 12 M. 52.6% Worst 12 M. 23.2% Last 24 M. 132.8% Worst 24 M. 54.7% Last 36 M. 197.4% Last 60 M. 414.6% Max. DDn -4.0% All figures are calculated on monthly data in percent of the initial account size Account Size: 3.500.000 USD PORTFOLIO ANALYSIS DISTRIBUTION OF MONTHLY RETURNS Treynor Ratio* Tracking Error* Information Ratio* 0.43 0.05 0.85 * Benchmark = Dow Jones Credit Suisse Hedge Funds Index (Managed Futures) Skewness Kurtosis Excess Kurtosis 0.35 2.98-0.10 30 25 20 15 10 5 0-6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% Disc la ime r: No representation or warranty as to the accuracy of the information contained in this performance update is made or is to be implied. This update is for information purposes only, and doesnot constitute an offering. These materials are not, and underno circumstances are they to be construed as, a prospectus, advertisement or public offering. Hypothetical performance results - as some of the system results shown on this page - have several inherent limitations. There is no guarantee that any account will oris likely to achieve profits orlosses similar to those shown at this page.there are frequently differences between hypothetical results and the results achieved by real trading. The shown trading results or performances in the past are no guarantee for profits in the future. The risk of loss in trading forex and futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. 11
Initial margin required to trade eminiwold TREC_6 PORTFOLIOS ASSET CLASS SYMPOL ROOT DESCRIPTION NO OF INSTANCES INITIAL MARGIN/CONTRACT TOTAL INITIAL MARGIN CURRENCIES @AD AUSTRALIAN DLR. 4 $3,375 $13,500 CURRENCIES @BP BRITISH POUND 3 $2,025 $6,075 CURRENCIES @EC EURO CURRENCY 41 $4,725 $193,725 METALS @GC GOLD (COMEX) 28 $9,113 $255,164 METALS @HG COPPER (COMEX) 20 $5,400 $108,000 METALS @PL PLATINUM (NYMEX) 5 $3,850 $19,250 METALS @SI SILVER (COMEX) 14 $18,900 $264,600 EQUITIES @DAX DAX 28 12,440 348,320 EQUITIES @TF MINI RUSSELL 2000 (ICE) 8 $6,600 $52,800 EQUITIES @YM MINI DOW JONES ($5) 36 $3,125 $112,500 GRAINS @C CORN (CBOT) 34 $2,363 $80,342 GRAINS @S SOYBEANS (CBOT) 28 $5,063 $141,764 INTEREST RATES @FV 5-YR T-NOTE 6 $878 $5,268 INTEREST RATES @TU 2-YR T-NOTE 11 $371 $4,081 INTEREST RATES @TY 10-YR T-NOTE 36 $1,485 $53,460 INTEREST RATES @US 30-YR T-BOND 8 $3,780 $30,240 310 $1,778,691 eminiwold TREC_6 PORTFOLIOS Correlation Matrix AD BP EC C S TF YM FDAX GC HG PL SI FV TU TY US ALL TREC AD 1.0000 (0.0098) 0.1631 0.0368 0.0479 0.0956 0.1435 0.0821 0.0825 0.0742 0.0769 0.1010 0.0827 0.0354 0.0633 0.0411 0.2332 BP (0.0098) 1.0000 0.1303 0.0186 (0.0335) 0.0102 (0.0061) 0.0179 0.0286 0.0410 (0.0205) (0.0234) 0.0540 0.0369 0.0590 0.0668 0.0802 EC 0.1631 0.1303 1.0000 (0.0138) 0.0139 0.0289 0.0320 0.0345 0.1280 0.0672 0.0509 0.0583 0.0980 0.0552 0.1011 0.0838 0.3519 C 0.0368 0.0186 (0.0138) 1.0000 0.2893 0.0315 0.0733 0.0412 0.0511 0.0048 0.0311 0.0410 0.0015 (0.0279) (0.0315) (0.0372) 0.3103 S 0.0479 (0.0335) 0.0139 0.2893 1.0000 0.0655 0.0989 0.0465 0.0617 0.0246 0.1340 0.0630 0.0090 (0.0405) (0.0545) (0.0481) 0.4905 TF 0.0956 0.0102 0.0289 0.0315 0.0655 1.0000 0.4399 0.1737 0.0266 0.0666 0.0380 0.0225 (0.0031) (0.0292) (0.0140) (0.0168) 0.2551 YM 0.1435 (0.0061) 0.0320 0.0733 0.0989 0.4399 1.0000 0.2772 0.0505 0.0612 0.0552 0.0871 (0.0224) (0.0736) (0.0395) (0.0507) 0.3790 FDAX 0.0821 0.0179 0.0345 0.0412 0.0465 0.1737 0.2772 1.0000 0.0089 0.1440 0.0582 0.0300 (0.0389) (0.0522) (0.0579) (0.0342) 0.4717 GC 0.0825 0.0286 0.1280 0.0511 0.0617 0.0266 0.0505 0.0089 1.0000 0.0693 0.1716 0.4014 0.0587 0.0141 0.0720 0.0597 0.4373 HG 0.0742 0.0410 0.0672 0.0048 0.0246 0.0666 0.0612 0.1440 0.0693 1.0000 0.0418 0.0592 0.0429 0.0380 0.0306 0.0449 0.3238 PL 0.0769 (0.0205) 0.0509 0.0311 0.1340 0.0380 0.0552 0.0582 0.1716 0.0418 1.0000 0.2004 (0.0152) (0.0406) (0.0358) (0.0455) 0.2612 SI 0.1010 (0.0234) 0.0583 0.0410 0.0630 0.0225 0.0871 0.0300 0.4014 0.0592 0.2004 1.0000 0.0290 0.0160 0.0224 0.0080 0.4456 FV 0.0827 0.0540 0.0980 0.0015 0.0090 (0.0031) (0.0224) (0.0389) 0.0587 0.0429 (0.0152) 0.0290 1.0000 0.4317 0.6779 0.5131 0.3094 TU 0.0354 0.0369 0.0552 (0.0279) (0.0405) (0.0292) (0.0736) (0.0522) 0.0141 0.0380 (0.0406) 0.0160 0.4317 1.0000 0.5315 0.3953 0.2190 TY 0.0633 0.0590 0.1011 (0.0315) (0.0545) (0.0140) (0.0395) (0.0579) 0.0720 0.0306 (0.0358) 0.0224 0.6779 0.5315 1.0000 0.7525 0.3681 US 0.0411 0.0668 0.0838 (0.0372) (0.0481) (0.0168) (0.0507) (0.0342) 0.0597 0.0449 (0.0455) 0.0080 0.5131 0.3953 0.7525 1.0000 0.3144 ALL TREC 0.2332 0.0802 0.3519 0.3103 0.4905 0.2551 0.3790 0.4717 0.4373 0.3238 0.2612 0.4456 0.3094 0.2190 0.3681 0.3144 1.0000 12
eminiwold TREC on TradeStation Strategy Network There are few basic steps before we recommend starting trading any eminiworld TREC portfolio with your live account. Please contact us after you will start your free trial. We will arrange a conference call to extend your free trial. We assist/consult our potential customers in setting up LIVE SIMULATION to experience and get to know eminiworld TREC better. We expect a decision to be made by the end of extended free trial. If customer agrees to trade eminiworld TREC with his live account we will sign an agreement. It is in our interest to help every customer to make money on the market as we are compensated on a performance basis of our algorithmic model. 13
Contact Us For more information and free trial extension please contact us: Saulius Galatiltis Tel: +370 698 80738 email: saulius@eminiworld.com WORKING HOURS: 7:00 a.m. 5:00 p.m. (UTC) London, Dublin, Lisbon We also recommend visiting our website www.eminiworld.com Our live trading results are available upon request. 14