<Normally I wouldn't give the time of day to someone with a system that has such a short-term performance, so it's a testament to the fact that I did like what you had to say that I'm still looking at what you offer. Any insight you want to provide to help me understand your system and why you believe it wouldn't hurt.  And of course, it's also possible I would come back later as I will likely be allocating assets again sometime.  Without revealing all your secrets, I would be interested to learn more about the thought process (or algorithm method) that goes into each trade>

The name used for this system comes from the thoughts of Dr. Alexander Elder in his book, "Trading For A Living."  In it he said "A trader can use a farmer's approach.  He should look to buy in spring, sell in summer, go short in the fall, and cover in winter."  With some variation, this is what we are doing (except we also reversed the seasons).  By the time the average trader is incited to go long, Spring has begun to turn to Summer; and we are selling.  When Fall turns to Winter, the losing trader is bailing out or getting short; we are accumulating long positions.

Of course, we believe one has to have the courage to enter the fray against the trend.  The system must also have the mechanics within it to preserve capital when going against the crowd turns out to be the wrong thing to do.

If a Summer or Winter lasts too long, our goose is cooked; we get stopped out.  Winter always eventually turns to Spring and Summer to Fall, but we just take our losses and wait for the next season to appear.  We seek to limit the losses in these conditions by limiting the number of positions we put on and trading other uncorrelated markets.  The loss is further contained by setting system parameters to prohibit trading in that direction if a prescribed number of losses are taken.  As a matter of fact, we can set them where it is designed to take a measured loss even if stopped out of the maximum number of positions allowed.

An excellent example of this strategy is in the attached graphic.  It is a continuation of the four full-screen graphics you have in the promotional document we sent you.

<and particularly how you think it is braced to deal with risks, particularly unusual ones.>

In our opinion, nothing moves the EURUSD market like scheduled news announcements that happen almost weekly.  In the 5-minute environment, these movements can be equivalent to gigantic moves caused by monumental events on the daily level.  We benefit from these news releases significantly if we are on the right side of it.  If we are not, we are stopped out.  We have never experienced slippage in this market when that happens, even with the widest spreads we've seen.  In a move that is propelled as much as 75 pips in a matter of seconds, our executions have always been to the pip. However, past results are not necessarily indicative of future performance and most clearing firms cannot guarantee that there will never be slippage.

<I also don't remember what sort of leverage possibilities you have.>

You have a wide choice of leverage.  We use 200:1 in our corporate investment account, but we aim to contain risk with sensible position sizing based on an anti-martingale derivative of the Kelly criterion.

If we told you anymore than this, we would have to kill you.