Overview
| Managed Account Program: |
MCEL E-CYCLES/Currency - Premium |
| Account Manager: |
McElhannon Group, Inc. |
| Inception: |
January 2001 |
| Currencies Traded: |
G-7 |
| Minimum Investment Size: |
$100,000 |
| Minimum Time Commitment: |
6 Months |
| Leverage: |
4:1 |
| Maximum Drawdown: |
(31.16%) Two months to recoup |
| Average Monthly Return: |
5.81% |
| Results To Date: |
766.71% |
Performance
| Month |
2007 |
2008 |
2009 |
2010 |
January |
12.15% |
(4.94%) |
(0.00%) |
|
February |
(7.92%) |
10.22% |
(0.00%) |
|
March |
(9.77%) |
16.37% |
0.45% |
|
April |
(5.72%) |
23.29% |
12.17% |
|
May |
5.19% |
(8.40%) |
(9.43%) |
|
June |
9.20% |
22.85% |
28.73% |
|
July |
13.71% |
(12.57%) |
19.38% |
|
August |
8.80% |
13.49% |
12.88% |
|
September |
15.07% |
0.00% F |
11.88% |
|
October |
6.38% |
(0.00%) |
(0.27%) |
|
November |
18.71% |
(0.00%) |
19.43% |
|
December |
6.81% |
(0.00%) |
(10.14%) |
|
TOTAL |
72.61% |
60.31% |
85.08% |
|
|
Month |
2003 |
2004 |
2005 |
2006 |
|
January |
3.12% |
43.98% |
(13.32%) |
2.47% |
|
February |
(0.00%) C |
23.55% |
(4.32%) |
(0.17%) |
|
March |
(0.00%) C |
21.08% |
(6.56%) |
7.91% |
|
April |
(0.00%) C |
27.91% |
19.83% |
3.25% |
|
May |
0.67% |
13.35% |
2.15% |
6.13% |
|
June |
2.68% |
(7.00%) |
4.85% |
(3.01%) |
|
July |
15.17% D |
9.43% |
25.90% |
12.87% |
|
August |
5.35% |
8.34% E |
16.34% |
(9.28%) |
|
September |
9.80% |
7.70% |
(5.88%) |
7.07% |
|
October |
(25.12%) |
2.60% |
8.31% |
9.91% |
|
November |
(6.04%) |
(1.56%) |
4.90% |
4.93% |
|
December |
10.72% |
12.91% |
(3.76%) |
12.77% |
|
TOTAL |
16.35% |
162.29% |
48.44% |
54.85% |
|
Month
|
1999
|
2000
|
2001
|
2002
|
|
January |
18.77%
|
9.56%
|
32.21%
|
(0.84%)
|
|
February |
(12.74%)
|
13.63%
|
1.78%
|
8.44%
|
|
March |
15.42%
|
11.23%
|
9.96%
|
(0.81%)
|
|
April |
3.04%
|
(7.40%)
|
8.16%
|
(1.19%) B
|
|
May |
(10.97%)
|
4.63%
|
(3.19%)
|
0.50%
|
|
June |
2.44%
|
1.66%
|
9.99%
|
1.03%
|
|
July |
7.65%
|
(1.00%)
|
4.18%
|
3.27%
|
|
August |
29.26%
|
15.65%
|
(2.04%)
|
3.96%
|
|
September |
(1.09%)
|
(3.77%)
|
10.79%
|
7.67%
|
|
October |
8.58%
|
(3.69%)
|
(0.92%)
|
4.83%
|
|
November |
38.81%
|
(2.00%)
|
(0.47%) A
|
10.15%
|
|
December |
24.96%
|
(2.95%)
|
(2.99%)
|
2.63%
|
|
TOTAL
|
124.13%
|
35.55%
|
67.46%
|
39.64%
|
NO REINVESTMENT OF PROFITS
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
READ OUR FULL DISCLAIMER BELOW.
A. November 2001 includes a 10.64% equity loss due to the American Airlines crash 11/12/2001, Queens, New York.
B. PAMM transition period.
C. Pre-war and war with Iraq. Capital preservation mode.
D. BP FX Program begins
E. BP FX MATS Program begins
F. U.S. Presidential Election Cycle Pause. September 2008 through March 29, 2009.
Disclosure
All performance figures shown above are net of all fees and assume the monthly withdrawal of realized capital gains and, therfore, do not accout for monthly compounding. Fees: 2% annual management fee (billed at .166% per month) and 30% of new monthly profits based on a net high Dollar basis. Past performance is not indicative of future results and individual returns may vary among participants. Investments in foreign exchange are subject to risks, such as erratic market conditions, economic and political instability. This is not a solicitation to invest. Please consult your investment advisor and read all risk warnings prior to committing funds.
Background of Philip M. Worley
Philip M. Worley is President of McElhannon Group, Inc., which is a commodity futures and Forex research and consulting firm offering equity enhancement strategies, research, and consulting on a global basis to institutional and professional money manager clients, major brokerage firms, energy companies, and retail customers. Mr. Worley has been a federally licensed investment broker since 1973. He served 20 years as President of GCCF, Inc., previously a guaranteed Introducing Broker of ED&F Man, based in Burnet, Texas. He has been President of McElhannon Group, Inc. for 15 years. Additionally he has served as a Commodity Futures arbitrator for the NASD in Houston, Texas. Philip M. Worley and McElhannon Group, Inc. are registered with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) as a Commodity Trading Advisor.
Trading Strategy
Mr. Worley’s trading strategy utilizes two proprietary trading systems called MACK STACK and MCEL E-CYCLES. This cyclic approach is substantially different than linear cycles and standard seasonal cycle studies. The basics for these two approaches are incorporated into a Forex market cycle program that is self-correcting, self-projecting, self-controlled, and self-learning. For years, Mr. Worley has used this “live cycle” method in various market indexes that his firm utilizes internally. Unlike broad Futures indexes and other similar market indexes on various markets and market groups, his indexes are not just price-average derivatives. The McElhannon indexes also include other “live data” components that treat the Futures and Forex markets as the living, breathing, ever-changing entities that they are. Most popular indexes are one-dimensional. McElhannon indexes used in these Forex strategies are three to six-dimensional. The results generate a clearer, more-correct picture. That same multi-dimensional “live data” approach is now incorporated in our computerized Forex cycle projections. This market approach seeks profit opportunities from market discrepancies in the U. S. Dollar versus G-7 currencies and in G-7 currencies versus each other.
The Forex markets offer some of the most consistent patterns under the McElhannon trading discipline. The ability to trade these 24-hours per day, Sunday afternoon through Friday generates additional opportunities which are not available in most other investment markets.
The MCEL Currency Program was introduced in 2001. Its fund management combination of trade identification and risk management has performed well since inception. This program utilizes MACK STACK in addition to the newer proprietary MCEL E-CYCLES investment method. This systematic technically based program with strict parameters is modeled after the MCEL Diversified Futures Program, which was discontinued in 2001. The returns in the table above reflect the performance record of the MCEL Diversified Futures Program during 1999 and 2000, and the performance of the MCEL E-CYCLES/Currency Program beginning January 2001 to the present.
Opening An Account
All accounts are traded through firms which are Futures Commission
Merchant (FCM) registered with the Commodity Futures Trading Commission
and are members of the National Futures Association. Each of these firms
must be pre-approved by McElhannon Group, Inc. All funds are held in
segregated accounts, where clients have sole deposit/withdrawal rights.
McElhannon Group, Inc. has limited power of attorney to trade the account
only and does not have deposit/withdrawal authorization.
To open an account with one of these FCMs, it is necessary to complete
their account opening documents. You will also need to complete a limited
power of attorney form, which must be signed by both the client and
McElhannon Group, Inc. McElhannon Group, Inc. also requires the
completion of additional paperwork.
Investors who are interested in having their funds managed by McElhannon
Group can contact them using the information below. The necessary
paperwork can be sent by email or fax.
Risk Warning Disclosure
RISKS OF FOREX TRADING
Trading in foreign exchange is speculative and may involve the loss of principal; therefore, assets placed under management should be risk capital funds that if lost will not significantly affect one’s personal financial well being. This is not a solicitation to invest and you should carefully consider your financial situation as to the suitability to your situation prior to making any investment or entering into any transaction.
PAST PERFORMANCE
Past performance is not indicative of future results, as returns may vary according to market conditions. Forex trading involves substantial risk.
The trading systems herein described have been developed for sophisticated traders who fully understand the nature and the scope of the risks that are associated with Forex trading. Should you decide to trade any or all of these systems’ signals, it is your decision.
No representation is being made that following a system’s suggested signals will necessarily lead to profit. Investors may incur a series of consecutive losses and substantial equity-draw-downs that can deplete their assets before the occurrence of any meaningful profit accumulation.
Please take note that all the figures shown herein (unless otherwise noted) represent a computer back-test of trading systems-logic and NOT an actual trading record. Results from January through December 2009 were real time trading results on commercial trading platforms.
HYPOTHETICAL PERFORMANCE
Hypothetical performance results have many inherent limitations. 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. Variables such as the ability to adhere to a particular trading program in spite of trading losses as well as maintaining adequate liquidity are material points which can adversely affect actual real trading results. For example, the ability to withstand losses or to 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 markets in general or to the implementation of any specific trading program that cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
