Salus Alpha Capital Ltd

(Directional Markets (DMX))

Fund Investment Objectives

SALUS DIRECTIONAL MARKETS STRATEGY is fully systematic and invests in up to 100 global futures and forward markets. A statistical approach with a daily feedback system based on forecast quality is used to determine the signal (long or short) as well as position size. With 250 trading days a year and 100 markets, this generates 25000 forecasts a year, which is statistically significant. No technical analysis is used. The better the forecast quality the more trust is put into the forecast; the system is adaprive to changing market environment and can switch between short to long term as well as trend following and contrarian. The strategy targets a return of 15-20% p.a. with a volatility of approximately 10% p.a. Analog execution technology delivers no market price impact and high strategy capacity. The model exhibits on the long run significantly more upside with less downside than other CTAs/managed futures programs.