Managed Futures ProfileVision Capital Management

Trading Description
Mr. Michalek began developing trading systems in 1999. After much study and research both with actual trading, back testing and forward testing thousands of ideas the system currently in use begin to take shape in late 2002, but Mr. Michalek was not satisfied with the level of risk that one would have to assume in order to achieve the returns generated by the trading system, so research continued on a quest to minimize volatility and create a more consistent performance without sacrificing overall returns, this goal was reached to great satisfaction in January 2006 and VCM began trading the system in February of that same year.

The exact nature of VCM's trading methods are proprietary and confidential. The general trading strategy is trend following and strictly technical in nature no fundamental analysis is used. The trading method uses two main components to determine entries and exits these are both based on “Time and Price”.

Through the study of the markets, analyzing literally tens of thousands of charts Mr. Michalek came to the conclusion that both time and price provide all the necessary information to know when to enter and exit each market traded and based on this premise the trading program was developed. The system trades both sides of the market (long and short) on a diversified portfolio of future markets. All parameters are identical for all markets traded in the portfolio for both long and short trades and all trading signals are 100% systematic. Through the use of a proprietary trend filter the system eliminates many poor trading periods and as a result each market is only traded about 60% of the time this was accomplished without ever missing a winning trade. Many of the principles and ideas used to create the trading system came from an extensive study and practice of the Elliott Wave Theory and Fibonacci analysis and understanding the relationship between time and price. This was a key factor in putting all the pieces to the puzzle together and was the final touch that was needed to arrive at the current trading system from it's early stages when it started to take form in 2002 to it's implementation in February of 2006. Many of these discoveries were significant not only for perfecting the entry and the exit but were also just as important in formulating the composition of the markets to be traded and the risk management techniques employed for each individual position and portfolio as a whole, we believe that there is a delicate balance between risk and reward.

Risk Strategy
VCM employs proprietary risk management techniques designed to control risk in a client's account. In order to control risk the trading system determines and limits how much equity should be committed to each position, the risk taken is a small fraction of the total equity value. By broadly diversifying across a wide array of markets, the trading system diminishes the importance of any one position in the portfolio even further. VCM believes that there is always room for improvement and as a result the methods that may be used in the future might differ from those presently being used. Because VCM's methods are proprietary and confidential, managed account clients will not be informed with respect to such changes in VCM's investment methods.



Background
Mr. Michalek has over 9 years trading experience in the stock, futures, and derivative markets and has developed several proprietary trading systems. He is a portfolio manager of Vision Capital Management, LLC and is the primary developer of their proprietary trading and money management methodologies. He also currently serves as head analyst for a financial newsletter publisher where he prepares in-depth analysis reports on S&P 500 and Nasdaq 100 stocks for individual and institutional clients. Prior to starting Vision Capital Management, LLC Mr. Michalek was lead portfolio manager for Mapleton Capital Management, LLC.