T2 Associates, Inc.

(Contrary #1 Pool)

Fund Investment Objectives

T2 ASSOCIATES, INC. utilizes a systematic strategy based trading algorithm called ORIGINAL PROGRAM consisting of multiple time frames trading similar strategies with modified parameters developed for a specific time frame. Initially the program has been developed for trading in the E-mini electronic trading markets, specifically, the S&P 500 index, the NASDAQ 100 index, the Dow Jones Industrial Index, and the E-mini Russell 2000 index. Initially, T2 Associates, Inc. will trade in a client's account the E-Mini S&P 500 futures but may enhance its portfolio with trading on the other three symbols as opportunities arise. The trading approach utilized by the CTA is to trade these future contracts as a portfolio consisting of multiple time frames. Each time frame will be traded independently of the other time frames; consequently one could have a period where the portfolio of time frames was both short and long at the same time. The results would give a net portfolio position. The positions are usually placed at the open of the next bar (bars being different for different time frames) and may be with the underlying trend or against the trend. The program is systematic and it is intended to always be in the markets, either long or short. The portfolio will carry positions overnight and the time length for any one position could be from a short span of 2 hours or less, to a long span of a 2 to 3 weeks. The algorithm is primarily focused on swing trading (positions usually held overnight for a period of more than one day) and is not a day trading program. From time to time there will be trades that will be both placed and closed out during a given trading day, but this is a rare occurrence. In addition some time frames may be on the sidelines. This is usually a minority of the time, but could happen when a trailing stop or a profit target has being met. The CTA may invest in a limited number of electronically traded commodities which will provide increased risk in concentration in one market sector. Non-diversification involves an increased risk of loss to the CTA accounts when financial, economic, business and other developments affecting this sector will have a greater effect on the CTA accounts than if it had not concentrated its assets in that sector.