Tyche Capital Advisors LLC

(TCA Energy Spreads)

Fund Investment Objectives

TCA ENERGY SPREADS, is a trading and portfolio management platform which systematically trades the forward curve of crude oil via a collection of proprietary quantitative and analytical algorithms for profit while employing a risk management methodology to minimize risk and limit portfolio drawdown. The CAP's forward curve analysis module continually evaluates and monitors the crude oil forward and back curve's past, present, and projected slope, probability of change, and direction based on a number of proprietary algorithms and statistical analysis techniques. This analysis and predictability is critical to the success of this trading strategy and provides the guidance to predict the path, performance, and strength of the movement of the spreads created by this curve. It also provides vital indicators which anticipate changes to the curve and therefore allow the trading strategy to take advantage of these changes through position and equity manipulation which minimizes risk and captures gains to the portfolio. Market and product fundamentals as well as global and geopolitical events are also taken into consideration as part of the strategy. The CAP places substantial emphasis on portfolio risk management to reduce exposure through effective management of leverage via appropriate margin to equity ratios. While the futures market incorporates highly leveraged products, the model only uses a small percentage of this leverage, typically 5-15%. This allows for positions still capture substantial profits while limiting drawdowns and loses to manageable levels. These leverage ratios can be adjusted as changes to the portfolio goals modify profit and drawdown thresholds. We find this controlled and conscious approach ensures a calculated aversion to risk and produces consistent targeted returns and avoids excessive portfolio volatility. The program is also applied to other commodity markets such as natural gas, heating oil, unleaded gasoline, corn, soybeans and a number of other liquid commodities.