www.AutoSystemTrader.com

HYPOTHETICAL PERFORMANCE DISCLAIMER

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE

DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO

ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP

DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS

SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY

PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT

INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR

THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND

LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL

POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS

OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY

SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF

HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING

RESULTS.

FOREX RISK DISCLOSURE STATEMENT

OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS INVOLVE THE LEVERAGED TRADING OF

CONTRACTS DENOMINATED IN FOREIGN CURRENCY CONDUCTED WITH A FUTURES COMMISSION

MERCHANT OR A RETAIL FOREIGN EXCHANGE DEALER AS YOUR COUNTERPARTY. BECAUSE OF THE

LEVERAGE AND THE OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE ALL OF THE FUNDS YOU

DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOU DEPOSIT. YOU SHOULD BE AWARE

OF AND CAREFULLY CONSIDER THE FOLLOWING POINTS BEFORE DETERMINING WHETHER SUCH

TRADING IS APPROPRIATE

FOR YOU.

(1) TRADING IS NOT ON A REGULATED MARKET OR EXCHANGE—YOUR DEALER IS YOUR TRADING

PARTNER WHICH IS A DIRECT CONFLICT OF INTEREST. BEFORE YOU ENGAGE IN ANY RETAIL FOREIGN

EXCHANGE TRADING, YOU SHOULD CONFIRM THE REGISTRATION STATUS OF YOUR COUNTERPARTY.

The off-exchange foreign currency trading you are entering into is not conducted on an interbank

market, nor is it conducted on a futures exchange subject to regulation as a designated contract market

by the Commodity Futures Trading Commission. The foreign currency trades you transact are trades

with the futures commission merchant or retail foreign exchange dealer as your counterparty. WHEN

YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER. As a result, when you

lose money trading, your dealer is making money on such trades, in addition to any fees, commissions,

or spreads the dealer may charge.

(2) AN ELECTRONIC TRADING PLATFORM FOR RETAIL FOREIGN CURRENCY TRANSACTIONS IS NOT AN

EXCHANGE. IT IS AN ELECTRONIC CONNECTION FOR ACCESSING YOUR DEALER. THE TERMS OF

AVAILABILITY OF SUCH A PLATFORM ARE GOVERNED ONLY BY YOUR CONTRACT WITH YOUR DEALER.

Any trading platform that you may use to enter off-exchange foreign currency transactions is only

connected to your futures commission merchant or retail foreign exchange dealer. You are accessing

that trading platform only to transact with your dealer. You are not trading with any other entities or

customers of the dealer by accessing such platform. The availability and operation of any such platform,

including the consequences of the unavailability of the trading platform for any reason, is governed only

by the terms of your account agreement with the dealer.

(3) YOUR DEPOSITS WITH THE DEALER HAVE NO REGULATORY PROTECTIONS.

All of your rights associated with your retail forex trading, including the manner and denomination of

any payments made to you, are governed by the contract terms established in your account agreement

with the futures commission merchant or retail foreign exchange dealer. Funds deposited by you with a

futures commission merchant or retail foreign exchange dealer for trading off-exchange foreign

currency transactions are not subject to the customer funds protections provided to customers trading

on a contract market that is designated by the Commodity Futures Trading Commission. Your dealer

may commingle your funds with its own operating funds or use them for other purposes. In the event

your dealer becomes bankrupt, any funds the dealer is holding for you in addition to any amounts owed

to you resulting from trading, whether or not any assets are maintained in separate deposit accounts by

the dealer, may be treated as an unsecured creditor’s claim.

(4) YOU ARE LIMITED TO YOUR DEALER TO OFFSET OR LIQUIDATE ANY TRADING POSITIONS SINCE THE

TRANSACTIONS ARE NOT MADE ON AN EXCHANGE OR MARKET, AND YOUR DEALER MAY SET ITS OWN

PRICES.

Your ability to close your transactions or offset positions is limited to what your dealer will offer to you,

as there is no other market for these transactions. Your dealer may offer any prices it wishes, and it may

offer prices derived from outside sources or not in its discretion. Your dealer may establish its prices by

offering spreads from third party prices, but it is under no obligation to do so or to continue to do so.

Your dealer may offer different prices to different customers at any point in time on its own terms. The

terms of your account agreement alone govern the obligations your dealer has to you to offer prices and

offer offset or liquidating transactions in your account and make any payments to you. The prices

offered by your dealer may or may not reflect prices available elsewhere at any exchange, interbank, or

other market for foreign currency.

(5) PAID SOLICITORS MAY HAVE UNDISCLOSED CONFLICTS

The futures commission merchant or retail foreign exchange dealer may compensate introducing

brokers for introducing your account in ways which are not disclosed to you. Such paid solicitors are not

required to have, and may not have, any special expertise in trading, and may have conflicts of interest

based on the method by which they are compensated. Solicitors working on behalf of futures

commission merchants and retail foreign exchange dealers are required to register. You should confirm

that they are, in fact registered. You should thoroughly investigate the manner in which all such

solicitors are compensated and be very cautious in granting any person or entity authority to trade on

your behalf. You should always consider obtaining dated written confirmation of any information you

are relying on from your dealer or a solicitor in making any trading or account decisions.

FINALLY, YOU SHOULD THOROUGHLY INVESTIGATE ANY STATEMENTS BY ANY DEALERS OR SALES

REPRESENTATIVES WHICH MINIMIZE THE IMPORTANCE OF, OR CONTRADICT, ANY OF THE TERMS OF

THIS RISK DISCLOSURE. SUCH STATEMENTS MAY INDICATE POTENTIAL SALES FRAUD. THIS BRIEF

STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF TRADING OFF-

EXCHANGE FOREIGN CURRENCY TRANSACTIONS WITH A FUTURES COMMISSION MERCHANT OR RETAIL

FOREIGN EXCHANGE DEALER.

FX Stair Step

Stair Step is an automated trading strategy that trades the EURUSD 30 minute chart

looking for long trending moves. Stair Step has a tight 35 pip stop and protects

profitable positions quickly with a percentage trailing stop. Trades remain open as long

as price is moving in a profitable direction and do not close until a reversal signal is

generated or the percentage trailing stop is hit. This allows this strategy to capture

huge moves in the market with the maximum profitable trade capturing more than 1200

pips of profit. These large trades are relatively infrequent and give the strategy it’s

name Stair Step because most profitable trades are small, but the winning trades that

are occasionally captured can be very large giving the equity curve a Stair Step

appearance.

This is a trending strategy that should be combined with more consistent performing

strategies to help increase average trade net profits. At the time of this writing, the

average trade net profit is $188 and maximum historical drawdown is $5,474 including 3

pips per trade in fees.

Performance Summary

Total Net Profit:

Gross Profit:

Gross Loss:

Profit Factor:

Pessimistic RR:

Total Trades:

Winning Trades:

Losing Trades:

Even Trades:

% Profitable:

Avg. Trade Net Profit:

Avg. Winning Trade:

Avg. Losing Trade:

Payoff Ratio:

Largest Win:

Largest Loss:

Max Cons. Winners:

Max Cons. Losers:

Trading Period:

Longest Flat Period:

Max Shares/Contracts:

Max Drawdown:

Max Drawdown %:

Max Drawdown Date:

Longest Drawdown:

Recovery Factor:

Max Runup:

Max Runup %:

Max Runup Date:

Longest Runup:

Equity Peak:

Return on Initial Capital:

Annual Rate of Return:

Avg. Monthly Return:

Monthly Std. Dev.:

% Profitable Months:

Sharpe Ratio:

Sortino Ratio:

Sterling Ratio:

MAR Ratio:

Total Commission:

Total Slippage:

$93,601.60

$173,459.50

($79,857.90)

2.172

1.922

548

332

216

0

60.58%

$170.81

$522.47

($369.71)

1.413

$12,651.00, 7.29%

($570.00), 0.71%

13

7

7.99 years

1/6/2004-1/4/2012

49 days

100000

($6,108.30)

30.54%

12/27/2011

231 days

15.32

$12,827.00

64.13%

12/15/2010

133 days

$99,430.00

468.01%

58.54%

$975.68, 4.88%

$2,757.31

52.13%

1.18

4.39

2.64

1.92

$2,740.00

$13,700.00

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Closed Trade Equity Curve

Accumulative Monthly Net Profit

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Monthly Net Profit

Monthly Profit Distribution

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Drawdown Analysis

Largest Drawdowns

$ Amount Length

-$6,108.30 224 days

-$3,701.00 231 days

-$3,477.00 167 days

-$3,002.00 135 days

-$2,958.00 55 days

Total Drawdowns:

Average Amount:

Average Length:

41

-$1,293.91

58 days

Closed Trade Drawdowns

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Drawdown Depth Distribution

Drawdown Length Distribution

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Periodical Returns

Annual Returns

Year Net Profit % Return Profit Factor # Trades % Profitable

2012 $0.00 0.00% 0.00 0 0.00%

2011 $10,056.10 50.28% 1.75 84 55.95%

2010 $23,813.00 119.06% 5.18 37 59.46%

2009 $16,675.00 83.38% 2.42 82 62.20%

2008 $21,476.00 107.38% 2.82 71 56.34%

2007 $6,721.00 33.61% 1.84 59 62.71%

2006 $8,682.00 43.41% 1.84 71 60.56%

2005 $1,872.50 9.36% 1.15 75 54.67%

2004 $4,306.00 21.53% 1.66 69 73.91%

Monthly Returns

Year Net Profit % Return Profit Factor # Trades % Profitable

12/2011 ($378.80) -1.89% 0.67 8 62.50%

11/2011 ($1,929.20) -9.65% 0.37 12 33.33%

10/2011 $785.00 3.92% 3.07 7 85.71%

9/2011 $789.20 3.95% 2.04 4 50.00%

8/2011 ($3,660.60) -18.30% 0.14 18 27.78%

7/2011 ($493.40) -2.47% 0.57 9 66.67%

6/2011 ($299.00) -1.49% 0.21 2 50.00%

5/2011 $5,710.20 28.55% 6.01 7 57.14%

4/2011 $163.70 0.82% 1.22 7 71.43%

3/2011 ($196.00) -0.98% 0.48 4 75.00%

2/2011 $241.00 1.21% 100.00 3 100.00%

1/2011 $9,324.00 46.62% 100.00 3 100.00%

12/2010 ($528.00) -2.64% 0.54 5 40.00%

11/2010 $0.00 0.00% 0.00 0 0.00%

10/2010 $12,797.00 63.98% 100.00 3 100.00%

9/2010 ($158.00) -0.79% 0.58 3 66.67%

8/2010 $4,581.00 22.91% 5.02 5 40.00%

7/2010 $0.00 0.00% 0.00 0 0.00%

6/2010 ($624.00) -3.12% 0.45 6 50.00%

5/2010 $1,061.00 5.30% 3.79 3 66.67%

4/2010 ($201.00) -1.00% 0.47 3 66.67%

3/2010 ($760.00) -3.80% 0.00 2 0.00%

2/2010 $7,059.00 35.30% 100.00 3 100.00%

1/2010 $586.00 2.93% 2.54 4 75.00%

12/2009 $6,164.00 30.82% 17.22 4 75.00%

11/2009 ($403.00) -2.02% 0.65 6 50.00%

10/2009 ($632.00) -3.16% 0.17 5 60.00%

9/2009 $3,028.00 15.14% 3.66 7 57.14%

8/2009 $504.00 2.52% 1.66 7 71.43%

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7/2009 $943.00 4.71% 1.50 13 61.54%

6/2009 ($148.00) -0.74% 0.81 4 50.00%

5/2009 ($52.00) -0.26% 0.86 5 80.00%

4/2009 $824.00 4.12% 100.00 3 100.00%

3/2009 $2,746.00 13.73% 2.81 7 42.86%

2/2009 ($1,283.00) -6.42% 0.32 12 58.33%

1/2009 $4,984.00 24.92% 5.37 9 66.67%

12/2008 ($83.00) -0.41% 0.89 4 50.00%

11/2008 ($441.00) -2.21% 0.71 7 42.86%

10/2008 $1,404.00 7.02% 2.85 4 50.00%

9/2008 $12,360.00 61.80% 33.53 5 80.00%

8/2008 $142.00 0.71% 100.00 1 100.00%

7/2008 ($692.00) -3.46% 0.64 11 54.55%

6/2008 ($523.00) -2.61% 0.31 6 66.67%

5/2008 ($868.00) -4.34% 0.54 11 54.55%

4/2008 $838.00 4.19% 1.44 9 44.44%

3/2008 $8,095.00 40.48% 22.30 3 66.67%

2/2008 $1,869.00 9.35% 5.92 4 75.00%

1/2008 ($625.00) -3.12% 0.45 6 50.00%

12/2007 ($981.00) -4.91% 0.14 6 50.00%

11/2007 $1,121.00 5.61% 3.95 5 80.00%

10/2007 $4,647.00 23.23% 13.23 3 66.67%

9/2007 $145.00 0.73% 100.00 1 100.00%

8/2007 $2,054.00 10.27% 6.41 4 75.00%

7/2007 $2,405.00 12.03% 5.92 4 50.00%

6/2007 $375.00 1.88% 1.49 4 50.00%

5/2007 ($380.00) -1.90% 0.50 9 77.78%

4/2007 ($667.00) -3.33% 0.14 4 50.00%

3/2007 ($1,114.00) -5.57% 0.19 8 50.00%

2/2007 $69.00 0.34% 1.18 6 83.33%

1/2007 ($953.00) -4.76% 0.16 5 40.00%

12/2006 $4,719.00 23.59% 12.51 6 66.67%

11/2006 ($632.00) -3.16% 0.17 3 33.33%

10/2006 ($148.00) -0.74% 0.87 5 40.00%

9/2006 ($12.00) -0.06% 0.98 7 71.43%

8/2006 ($1,468.00) -7.34% 0.23 10 50.00%

7/2006 $388.00 1.94% 2.02 3 66.67%

6/2006 ($147.00) -0.73% 0.61 4 75.00%

5/2006 $6,796.00 33.98% 18.88 5 80.00%

4/2006 $71.00 0.36% 100.00 1 100.00%

3/2006 ($549.00) -2.74% 0.29 5 60.00%

2/2006 ($1,465.00) -7.32% 0.36 13 53.85%

1/2006 $1,129.00 5.64% 1.99 9 66.67%

12/2005 ($298.00) -1.49% 0.74 7 57.14%

11/2005 $309.00 1.54% 1.20 8 50.00%

10/2005 $478.00 2.39% 2.26 7 85.71%

9/2005 $1,315.50 6.58% 2.30 8 62.50%

8/2005 ($191.00) -0.95% 0.50 4 75.00%

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7/2005 ($1,655.00) -8.28% 0.23 9 33.33%

6/2005 $3,014.00 15.07% 8.93 4 75.00%

5/2005 $214.00 1.07% 1.11 8 37.50%

4/2005 ($1,384.00) -6.92% 0.27 10 50.00%

3/2005 $1,436.00 7.18% 100.00 2 100.00%

2/2005 $154.00 0.77% 2.40 4 75.00%

1/2005 ($1,520.00) -7.60% 0.00 4 0.00%

12/2004 $4,394.00 21.97% 16.69 6 83.33%

11/2004 ($290.00) -1.45% 0.77 11 63.64%

10/2004 $294.00 1.47% 100.00 3 100.00%

9/2004 $878.00 4.39% 4.38 7 85.71%

8/2004 ($120.00) -0.60% 0.68 5 80.00%

7/2004 ($940.00) -4.70% 0.18 5 40.00%

6/2004 ($684.00) -3.42% 0.41 8 62.50%

5/2004 ($254.00) -1.27% 0.67 5 60.00%

4/2004 $920.00 4.60% 100.00 4 100.00%

3/2004 $508.00 2.54% 2.34 7 85.71%

2/2004 ($612.00) -3.06% 0.36 7 71.43%

1/2004 $212.00 1.06% 100.00 1 100.00%

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Market Analysis

Total Markets in Portfolio:

% Profitable Markets:

Most Profitable Market

as % of Total Net Profit:

Avg. Profit per Market:

Avg. Profit Factor:

Avg. Trades per Market:

Avg. % Profitable Trades:

1

100.00%

100.00%

$93,601.60

2.17

548

60.58%

Market System Net Profit % Return Profit Factor # Trades % Profitable

EURUSD StairStep_Euro $93,601.60 468.01% 2.17 548 60.58%

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