Capital Trading Group

CTA Profile - Ace Investment Strategists
Program - Stock Index Hybrid Approach
Principal(s): Yu-Dee Chang
Trading Strategy: Option Writer / Stock Indexes

Trading Description:
The objective of the SIHA strategy is to enhance the consistency of overall returns by taking advantage of various market conditions with a vast array of investment vehicles and techniques. Typically, all financial markets tend to move in three stages… a trending phase, counter-trend and consolidation. Like the seasons in nature, each stage has its own characteristics. Each, therefore, is susceptible to greater exploitation and protection, when the most appropriate vehicles and techniques for the specific market condition are applied. It is central to this strategy that the Advisor makes use of flexibility to match the optimum trading style to the specific market situation. In the best sense, these strategies may by thought of as “all weather” strategies.

The focus of this strategy will be on stock indices, and the Advisor may choose to use spreads, be long or short the future or the option, or swing-trade the future, or apply dollar-cost-averaging approaches, or other trading styles, very much directed by, and in sync with, the market situation at the time.

It is felt that over the long term the stock market continues to offer the greatest opportunity for wealth creation. The basic vehicles will be stock index futures, which can offer stability as well as growth opportunities, and/or options on those futures which can add leverage and versatility. At times, the index of choice to be traded (or serve as the underlying entity for option trades) will be the broad based S&P 500 index or its “mini” version. At other times the blue-chip Dow Jones Industrial future; or its mini version will be the vehicle of choice; or the tech/growth laden Nasdaq 100 index in its various versions will be utilized; or other, more specialized indices may be used either singly or in combinations with each other or with one or more of the major indices or its related option contracts.

Trading Approach

Systematic - 70.00%
Discretionary - 30.00%
Trading Methodology
Trend Following: Non Trend Following: Fundamental Counter-Trend Following Pattern Recognition Option Writer
Markets Traded
Non Diversified Stock Indicies Physicals Other Markets
Sector
US Markets
Contracts Traded
Futures Options

Annual Performance Since 2003

2003	0.00%
2004	0.00%
2005	0.00%
2006	0.00%
2007	13.76%
2008	12.97%
2009	50.89%

Recent Performance

Currency Denomination - US Dollars

2010	Monthly Return	YTD Return	Assets Under Mgt
07/31/10	0.87%	-5.54%	20,700,000
06/30/10	6.47%	-6.36%	19,800,000
05/31/10	-16.34%	-12.05%	18,500,000
04/30/10	-2.11%	5.13%	21,600,000
03/31/10	3.23%	7.40%	20,900,000
02/28/10	1.51%	4.04%	18,900,000
01/31/10	2.49%	2.49%	17,700,000
2009	Monthly Return	YTD Return	Assets Under Mgt
12/31/09	7.02%	50.89%	16,100,000
11/30/09	2.81%	40.99%	15,800,000
10/31/09	-0.06%	37.14%	14,800,000
09/30/09	1.68%	37.22%	14,700,000
08/31/09	3.45%	34.95%	14,500,000

VAMI Chart (Based on a $1,000 Initial Value)

Monthly Percentage Returns Chart

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

Investment Details

Disclosure Document Date	12/31/09
Starting Date of Program	11/01/07
Accepting New Money?	Yes
Average Annual Rate of Return	26.21%
Peak to Valley Drawdown	-32.67 %
Average Margin as % of Equity	50.00%
Round Turns per Million	4,200
Minimum Sized Account	100,000
Currency Denomination	US Dollars
Management Fee	2.00%
Incentive Fee	20.00%
Notional Funding?	No
Member of NFA	Yes
Other Memberships

Statistical Definitions
(1) From January 1990 or Starting Date of Program - The Annual Average Rate of Return represents the compounded rate of return for each year or portion thereof presented. It is computed by applying successively respective monthly rate of return for each month beginning with the first month of that period. This includes all monthly data from the inception of the program or from January 1990, whichever is less.
(2) From January 1990 or Starting Date of Program - The Worst Peak-to-Valley Drawdown is defined as the greatest cumulative percentage decline in net asset value due to losses sustained by the trading program during any period in which the initial net asset value is not equaled or exceeded by a subsequent asset value. "Monthly" indicates that the Worst-Peak-to-Valley Drawdown" is based on monthly Data.

Risk Disclosure
THE RISK OF TRADING COMMODITY FUTURES, OPTIONS AND FOREIGN EXCHANGE ("FOREX") IS SUBSTANTIAL. THE HIGH DEGREE OF LEVERAGE ASSOCIATED WITH COMMODITY FUTURES, OPTIONS AND FOREX CAN WORK AGAINST YOU AS WELL AS FOR YOU. THIS HIGH DEGREE OF LEVERAGE CAN RESULT IN SUBSTANTIAL LOSSES, AS WELL AS GAINS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES, OPTIONS AND FOREX IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IF YOU ARE UNSURE YOU SHOULD SEEK PROFESSIONAL ADVICE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS. IN SOME CASES MANAGED ACCOUNTS ARE CHARGED SUBSTANTIAL COMMISSIONS AND ADVISORY FEES. THOSE ACCOUNTS SUBJECT TO THESE CHARGES, MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS JUST TO AVOID DEPLETION OF THEIR ASSETS. EACH COMMODITY TRADING ADVISOR ("CTA") IS REQUIRED BY THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") TO ISSUE TO PROSPECTIVE CLIENTS A RISK DISCLOSURE DOCUMENT OUTLINING THESE FEES, CONFLICTS OF INTEREST AND OTHER ASSOCIATED RISKS. A HARD COPY OF THESE RISK DISCLOSURE DOCUMENTS ARE READILY AVAILABLE BY CLICKING ON EACH CTA'S "REQUEST DISCLOSURE DOCUMENT" BUTTON. THE FULL RISK OF COMMODITY FUTURES, OPTIONS AND FOREX TRADING CAN NOT BE ADDRESSED IN THIS RISK DISCLOSURE STATEMENT. NO CONSIDERATION TO INVEST SHOULD BE MADE WITHOUT THOROUGHLY READING THE DISCLOSURE DOCUMENT OF EACH OF THE CTAS IN WHICH YOU MAY HAVE AN INTEREST. REQUESTING A DISCLOSURE DOCUMENT PLACES YOU UNDER NO OBLIGATION AND EACH DOCUMENT IS PROVIDED AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF THE FOLLOWING PROGRAMS NOR ON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE DOCUMENTS. OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED TO YOU BEFORE AN ACCOUNT MAY BE OPENED FOR YOU.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PROSPECTIVE CLIENTS SHOULD NOT BASE THEIR DECISION ON INVESTING IN THIS TRADING PROGRAM SOLELY ON THE PAST PERFORMANCE PRESENTED. ADDITIONALLY, IN MAKING AN INVESTMENT DECISION, PROSPECTIVE CLIENTS MUST ALSO RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY MAKING THE TRADING DECISIONS AND THE TERMS OF THE ADVISORY AGREEMENT INCLUDING THE MERITS AND RISKS INVOLVED.

THE ABOVE PERFORMANCE NUMBERS HAVE BEEN SUPPLIED BY THE CTAS. CAPTIAL TRADING GROUP LP NO WAY GUARANTEES THE ACCURACY OF THESE NUMBERS AND HAS SUPPLIED THEM TO YOU FOR INFORMATIONAL PURPOSES ONLY. THIS DOES NOT CONSTITUTE A SOLICITATION TO BUY OR AN OFFER TO SELL. NO INVESTMENT SHOULD BE MADE WITHOUT FULLY REVIEWING THE ASSOCIATED RISK FACTORS, FEES AND CONFLICTS OF INTEREST AS OUTLINED IN EACH CTA'S RISK DISCLOSURE DOCUMENT. THERE MAY BE CTAS WHO HAVE CHOSEN NOT TO PARTICIPATE THAT MAY HAVE BETTER OR WORSE PERFORMANCE THAN THOSE CTAS IN OUR DATABASE.

PLEASE NOTE THAT THERE IS AN INHERENT RISK OF LOSS ASSOCIATED WITH TRADING FUTURES AND OPTIONS CONTRACTS. PLEASE CAREFULLY CONSIDER YOUR FINANCIAL CONDITION BEFORE INVESTING IN FUTURES AND OPTIONS CONTRACTS. FUTURES TRADING IS NOT SUITABLE FOR ALL INVESTORS