XPLOR makes trading decisions for all clients' accounts using proprietary quantitative trading strategies applied to a wide range of global futures, forwards, and option contracts. Currently, Xplor offers a single trading program entitled the Global CTA Program, described in this section. The underlying markets in which Xplor participates represent a number of different sectors: fixed income, foreign exchange, equity indexes, energies, metals and agricultural commodities. In each market, positions may be effected by the use of futures, forwards and/or option contracts, alone or in combination. Xplor's various trading strategies can be categorized for convenience into several disciplines: 1) fundamental information synthesis - strategies which analyze quantitative fundamentals such as interest rates, earnings, and macro-economic data which correspond to price movements in the relevant instrument. The strategies then project, using the fundamental data, the direction, extent and duration of future price movements. 2) momentum recognition - strategies which assess an instrument's strength or weakness (either on an absolute basis, relative to its history, or relative to some peer group) and target the strongest (weakest) for long (short) positions. 3) trend recognition - strategies which seek to capture large portions of significant price moves, both up and down, while minimizing losses in volatile or sideways market action. 4) counter-trend recognition-strategies which seek to capture limited reactionary moves against established trends or within trading ranges (consolidation areas.) Xplor seeks to construct from the available combinations of strategies and markets, on a dynamic basis, a portfolio which exhibits superior risk-adjusted return. Xplor relies on a proprietary analysis of market statistics which characterize the performance of possible combinations to arrive at a portfolio it believes exhibits superior potential for profit, consistent with minimizing the potential for large losses. This process continually reassesses market conditions and the potential for favorable (or unfavorable) performance of any given combination of strategy and instrument as well as the portfolio as a whole. The dynamic nature of the portfolio makes it impossible to predict its exact composition at any future date. As such, there can be no assurance that profitable opportunities in the various markets and strategy disciplines result in gains to a client's account. Moreover, losses in a subset of market and strategy combinations can cause significant unexpected losses to the client account if these combinations are heavily represented in Xplor's active portfolio construction. Xplor generally intends to follow the disciplined systematic decisions of its trading strategies and portfolio construction process. However, there are occasions on which the risk of the market does not appear to be justified by the potential reward. On these occasions, Xplor may override the systematic decision. While such action may be taken for any reason and at any time at Xplor's discretion, it will typically only be taken to reduce risk in the portfolio, and may or may not enhance the results which would otherwise be achieved.