System Name: Accelerator- ES Auto Trade Developer: Addwins LLC dba Trading Systems Live System Type: Intraday Futures Trades: Emini S&P Subscription Cost: $650 USD Year Dates Covered: Jan 2007- Mar 31 2016 System Description The complex trading algorithms that are built into Accelerator attempts to identify market reversal and momentum breakout trading opportunities whether the markets are trending up or down. Before and during any open trading position several technical factors are taken into account, in realtime, to determine high probability entries and exits. While maximum profit targets and stop loss levels are built into the system, dynamic targets and stops are also applied the moment a position is entered into the market based on current market conditions, making the exit levels less than the maximums much of the time. Although Accelerator- ES can enter the market after the regular trading session all positions are closed before the end of the trading session. Model Account ACCELERATOR- ES HYPOTHETICAL PERFORMANCE CAPSULE - Trading One Lot $80,000 $70,000 Net ProUit/Loss Accum. $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 -$10,000 Jan- 07 Jul- 07 Jan- 08 Jul- 08 Jan- 09 Jul- 09 Jan- 10 Jul- 10 Jan- 11 Jul- 11 Jan- 12 Jul- 12 Jan- 13 Jul- 13 Jan- 14 Jul- 14 Jan- 15 Jul- 15 Jan- 16 Statistics Suggested Starting Equity: $15,000 Total&P&L& $65,946 Commission&Rate $20&RT Total&ROI&% 440% Win&Loss&Ratio 1.72 Avg&Annual&ROI&in&$ $6,764 Worst&Drawdown ($8,225) Avg&Annual&ROI&in&% 45% Worst&Drawdown&Period 12/18/15/3/31/16 Total&Number&of&Trades 1350 Worst&Drawdown&% /54.8% Total&Number&of&Winning&Trades 853 Profit&Factor 1.42 Total&Number&of&Losing&Trades 497 Tracked&Trades&Started 1/31/14
2 Month by Month Performance in $ in a 1 Unit Basis $ Change %"Change"for Lifetime Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec for Year Year"of"Initial"Invstmt Balance* 2007 ($10) $0 $0 ($64) $822 ($1,423) ($858) $1,405 ($564) $283 $3,930 $958 $4,480 30% $19,480 2008 $1,060 $475 $1,901 $1,248 $749 ($197) ($287) $831 $3,539 $8,780 $5,578 $3,471 $27,147 181% $46,627 2009 $2,060 ($153) $823 $335 $1,960 $2,003 $1,012 ($1,808) ($510) $1,310 $267 ($721) $6,578 44% $53,205 2010 ($937) $1,444 ($159) $513 $859 $3,489 $1,218 $175 $785 $697 ($719) $588 $7,953 53% $61,157 2011 ($387) $61 $1,626 ($759) ($855) $946 ($530) $4,048 $2,780 $2,282 $2,119 $807 $12,138 81% $73,295 2012 ($1,037) $1,076 $767 $212 ($35) ($815) $410 ($116) ($139) $1,321 $951 $1,090 $3,685 25% $76,980 2013 ($261) $511 $213 $413 $845 $989 $677 $703 $54 $1,848 $1,819 ($398) $7,412 49% $84,392 2014 ($399) ($913) $775 ($1,105) $158 $520 $290 $135 $135 ($380) $878 ($810) ($716) D5% $83,676 2015 ($945) $2,740 $420 ($1,973) ($1,173) ($693) $1,318 $73 $2,508 $1,543 ($128) ($463) $3,228 22% $86,903 2016 ($1,665) ($3,080) ($1,213) $0 ($5,958) D40% $80,946 *Balances include initial investment of $15,000 Month by Month Performance in % (Each monthly percentage return is based on suggested starting equity) Disclaimers 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. %"Change"for Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year"of"Initial"Invstmt 2007 0% 0% 0% 0% 5% -9% -6% 9% -4% 2% 26% 6% 30% 2008 7% 3% 13% 8% 5% -1% -2% 6% 24% 59% 37% 23% 181% 2009 14% -1% 5% 2% 13% 13% 7% -12% -3% 9% 2% -5% 44% 2010-6% 10% -1% 3% 6% 23% 8% 1% 5% 5% -5% 4% 53% 2011-3% 0% 11% -5% -6% 6% -4% 27% 19% 15% 14% 5% 81% 2012-7% 7% 5% 1% 0% -5% 3% -1% -1% 9% 6% 7% 25% 2013-2% 3% 1% 3% 6% 7% 5% 5% 0% 12% 12% -3% 49% 2014-3% -6% 5% -7% 1% 3% 2% 1% 1% -3% 6% -5% -5% 2015-6% 18% 3% -13% -8% -5% 9% 0% 17% 10% -1% -3% 22% 2016-11% -21% -8% 0% -40% Monthly % Values are Monthly $ Performance from above table divided by Starting Equity Value, $15K 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. Material Assumptions The data displayed is for one contract at the initial suggested investment amount of $15,000 with no reinvestment or distribution of profits. The suggested starting equity is subject to change at anytime. Dollars and percentages shown include allowances for commissions, fees, and slippage. The data displayed contains both hypothetical back-tested data as well as tracked data. For the period 1/1/07-1/27/14 the data was hypothetical as provided by the developer, Trading Systems Live, which used continuous contract back adjusted data to calculate performance. For the period 1/28/14 - current, the data was tracked by Foremost Trading, using the worst fill received from actual trades taken. Commission is calculated at a rate of $20 round turn, annual subscription fees have been calculated at a rate of $650. During the back-tested phase, slippage is calculated at a rate of $-21.00 per completed trade. For the period the data was hypothetical the average slippage rate was applied. For the years the system was tracked, slippage was built in by using the worst fill. The model account displayed is hypothetical in that
3 it is not the result of any one account which traded continuously from 1/1/07 date listed on front page; rather it is a composite as described. Although individual investors will have the same trades, each investor may have a different percentage return depending on their start date and funding level. The Foremost Accelerator trade log of actual tracked fills as well as the Third Party Provider Glossary of Terms is made available to all Foremost Accelerator prospects and customers of the Accelerator system. The chart displayed reflects accumulated profits and losses to the account and does not include the initial suggested starting equity. It is a reflection of how the system did trading one unit at a time with no reinvestment or distribution. The tables displayed represent monthly profit and loss totals not accumulated account values. Monthly performance expressed as percentage is calculated by dividing the monthly profit or loss by the suggested starting equity. The actual percentage gain/loss experienced by individual investors will vary depending on many factors including but not limited to: starting account balances, market behavior, the duration and extent of the investor s participation in the system, and any money management techniques. Statistics for the System (posted under the chart) including drawdown are derived from daily trade data, not monthly totals. This means that the System Statistics listed may not align with the data in the monthly totals in tables, however both statistics are made available. Account values may fluctuate, sometimes greatly, during the month posted. For example, during a particular month, a significant loss could occur which is then followed by a significant gain. While the month total will reflect the sum of these two events, the System Statistics below the chart will reflect the individual events if they are either the worst drawdown or worst drawdown period. The individual trade logs, if tracked, should be reviewed for daily trades and accumulated account activity. It is possible to have a month with a profit but still be in a drawdown period. Drawdown should not only be measured from monthly change data though this data is significant for variety of investment evaluations. The Third Party Provider (TPP) Glossary of Terms is made available to all Foremost Accelerator prospects and customers of the Accelerator system. Risk Disclosure for Futures System Trading Programs & Performance Data Futures trading is complex and carries the risk of substantial losses. It is not suitable for all investors. The ability to withstand losses and to adhere to a particular trading program us spite of trading losses are material points which can adversely affect investor returns. Risks Associated With Day-Trading: Day trading strategies involving futures contracts and other products pose special risks. As with any financial product, persons who seek to purchase and sell the same future in the course of a day to profit from intraday price movements ( day traders ) face a number of special risks, including substantial commissions, exposure to leverage, and competition with professional traders. You should thoroughly understand these risks and have appropriate experience before engaging in day trading. Limitations of Stop-Loss: While stop-loss or stop-limit orders are placed they will not necessarily limit your losses to the intended amount. As past performance, hypothetical or actual does not guarantee and is not necessarily indicative of future results, these results may not necessarily be indicative of any account through utilization of this or any other trading method, software, strategy, newsletter or system in the future. No part of this document should be considered apart from the Disclosure Statements contained herein and provided. Futures based investments are often complex and can carry the risk of substantial losses, and are not suitable for everyone. The ability to withstand losses and to adhere to a particular trading program in spite of trading losses, are material points which can adversely affect investor returns. Any person that is considering using this information for the basis of investing/trading in the future does so at his or her own risk. Risk of loss can be greater than the funds deposited into the account owner s margin deposit account because futures are contracts that trade on a leveraged basis. Investors should carefully consider these risks and determine whether they are suitable for investing in light of their financial condition, personal risk evaluation and investment objectives.
4 Regarding Third Party Providers (TPP): It is vital that you know with whom you are working and who is providing the services you are using. The name of the system developer is on the performance document. Foremost Trading LLC is not the system developer. Foremost Trading LLC is not an agent of the third party developer of this system or any of its affiliates. Foremost Trading LLC executes trades on behalf of customers subscribed to a TPP system. Subscribers should contact their Foremost Trading LLC broker with any questions. Questions that your broker cannot answer should be asked of the developer directly. A TPP CANNOT give any individual or person any investment or trading advice. Only a registered Broker can discuss individual investment or trading concerns. TPPs are generally not registered with the Commodity Futures Trading Commission (CFTC) nor are they members of the National Futures Association (NFA). For further information about Third Party Providers please ask your Foremost Trading LLC broker. Generally speaking a TPP System Developer will have a purchase, subscription or lease fee for their program or services even if you are using Foremost Trading s Auto Trade service through a Letter of Direction. Be sure you have discussed the issues of cost with your broker before you start trading this or any other service you have. The user may choose to pay for these fees directly to the TPP or have them deducted from the trading account. Neither Foremost Trading LLC nor any of its brokers or principals shall have any liability of any nature in respect to any claim, damages, loss or expense arising from trades in connection with the reliance by you on the contents of this performance data report or any future performance data report updates. Any person who chooses to use this information as a basis for their trading/investing assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless Foremost Trading LLC, its Futures clearing firm, their principals, agents and employees. Repeat: Futures trading always involves risk and may not be suitable for everyone. Trading should only be done with true risk capital. Past performance is not indicative of any future performance. It may be better or worse. Therefore investors should carefully consider these risks and determine whether they are suitable for investing in light of their financial condition, personal risk evaluation and investment objectives. If you are uncertain whether or not you are suitable for this type of investment, please discuss this issue with someone that you feel can give you an objective viewpoint of this as a suitable investment vehicle for you. Note: Futures, Forex and Option trading involves substantial risk, and may not be suitable for everyone. Trading should only be done with true risk capital. Past performance either actual or hypothetical is not indicative of future results. Calls to and from Foremost Trading, LLC may be recorded.
5 Third Party Provider (TPP) - Glossary of Terms The following terms and definitions have been designed to pertain to the System Trading performance capsule. The information displayed as $ and % in the chart, statistics, and table sections reflect numbers which are after subscription fees have been included, and commission and slippage applied. There are no other commissions, costs or fees, which would make these numbers less favorable for the customer. Statistics for the number of winning and losing trades, and the win loss ratio, are calculated with commission and slippage applied. This means that some winning trades may be actually counted as losing trades due to the costs associated with commission and slippage. Subscription fees have no impact on whether a trade is a winner or loser thus that fee is not applied in the calculation. Suggested Starting Equity The suggested starting equity amount to trade this program is not necessarily adequate or inadequate. The starting capital is based on what appears to be a reasonable starting point with the intent that it should be sufficient to trade the program without additional funds needed. There may or may not be a need for additional funds. Total P&L in $ - The total profit or loss (P/L) over the period analyzed Total ROI Expressed as a Rate - The total profit or loss (P/L) expressed as a % of the suggested starting equity - over the period analyzed Average Annual ROI in $ The total profit and loss divided by the years over the period analyzed. Average Annual ROI as a Rate - The total rate of return divided by the number of years in the period (total return = net profit/loss divided by suggested capital) expressed as a percentage. Total Number of Trades- Total number of trades for the period analyzed Total Number of Winning trades - The number of trades in the period with returns greater than 0 after commission has been taken and slippage applied. Total Number of Losing Trades - The number of trades in the period with returns less than 0 after commission has been taken and slippage applied. Win Loss Ratio - Ratio of winning trades to losing trades Commission Rate A RT rate as indicated in the statistic portion of the performance capsule. It includes all exchange and any other trading fees. Average Slippage Per Trade Factor - Slippage is the difference between the execution price indicated by the trading algorithm, and the price the trade actually executes at in real accounts. Non- live performance is adjusted downwards by a slippage factor based on the actual slippage amount seen in the same contract or actual trades in the system. Worst Drawdown Period - The worst peak to valley loss of the system, as measured from accumulated daily trade values, on closed out trades with the date of the high and low point listed. Worst Drawdown and Worst Drawdown Rate - The dollar amount of the worst peak to valley drawdown and the rate (expressed as a percent of the starting equity) as measured from accumulated daily trade values. Drawdown Recovery- The date that the system recovered to the equity high before the worst drawdown Tracked Trades Started The date that Foremost Trading began tracking actual trades for the System Program. Profit Factor - The profit factor is the ratio between profits and losses and is calculated by dividing the sum of all profits by the sum of all losses. Lifetime Balance - The total profit and loss including the suggested initial investment.