Melissinos Trading can help traditional portfolios perform better. We can help by:

       a. Increasing average annual returns.
       b. Reducing volatility of returns.
       c. Reducing the portfolio’s maximum drawdown (loss).

We do a few different things to improve upon the traditional portfolio methodology:

       a. Increase the portfolio universe beyond stocks and bonds to include commodities and currencies.
       b. Trade with the trends, both up and down.
       c. Stay out of the market when no opportunities exist.
       d. Continually adjust allocations towards stronger trending markets and away from weaker (or flatter) trends.

As little as a 10% allocation to Melissinos Trading can potentially help provide a smoother ride for your traditional buy-and-hold portfolio.

Note: The diversification benefits of Trend-Following and Managed Futures, in general, is widely recognized in academic research. See “Litner Revisited, A Quantitative Analysis of Managed Futures”. Prospective investors must understand that the favorable results in this hypothetical analysis depend on Melissinos Trading periodically outperforming other asset classes in the portfolio.

Diversify

The graph above illustrates the difference between two hypothetical $1,000 portfolios. The first portfolio includes an allocation mix of 50% Stocks (S&P 500 Index), 30% Bonds (U.S. 10-year Note) and 20% Real Estate (iShares US Real Estate; ticker IYR). The second includes a mix of 40% Stocks, 24% Bonds, 20% Melissinos Trading and 16% Real Estate. Investors generally invest in these indexes with the intention of capital preservation, growth or income. Melissinos Trading represents the Trend-Following component. Sharpe Ratio uses a 0% risk free rate. Sortino Ratio uses a 0% risk free rate. The MAR = Annualized Return / Worst Loss. An investor cannot directly invest in an index. An index does not reflect fees that may be charged to an investment vehicle that is based on the index. Data is obtained from what Melissinos Trading holds to be reliable sources.

This information is produced by Melissinos Trading, LLC (the “Advisor”). For all of 2011, the Advisor’s performance reflects the composite performance of all accounts advised. Performance includes actively managed accounts with speculative trading profits as the objective. Performance does not reflect the performance of any one account, but rather a combination of the historical performance of multiple accounts and portfolios. Therefore, an individual account and a particular trading portfolio may have realized more or less favorable results than the composite indicates. From January 2012 to date, returns shown are actual returns of Melissinos Trading’s trading program “Eupatrid Commodity Program” as traded in Fund accounts. The returns represent the actual performance of all of the Fund accounts traded as a whole. The performance includes a transition period between November 2011 – December 2011 where no trading took place. Records, which document and support this performance are available upon request. The returns above are net of management fees (paid monthly) and performance fees (paid quarterly net of any new trading profits); fees vary amongst Fund participants. Actual returns of individual Fund participants or private client accounts may deviate from trading program returns depending on trading level, investment timing, & fee differences, among other factors. Further information on performance & method of calculation can be found in the Disclosure Document, which is available upon request. No representation is being made that any account is likely to achieve profits and losses similar to those shown. All information contained here, is subject to change without notice. Important information about the Eupatrid Commodity Program including risks, objective, strategy and fees is contained in the disclosure document. This is not and may not be used as a recommendation or a solicitation.

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 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 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.”

We implement a strategy based on diversifying, going with the trend, betting small, riding winners and cutting losses. We believe these design traits account for our outperformance and non-correlation, especially on days when stocks fall.

A completely different approach creates completely different results. Melissinos does not correlate highly to any traditional assets classes or Hedge Funds.

This serves investors by providing them with a strategy that does not perform like all of the rest, especially when they need balance and diversification.

Melissinos monthly returns and correlation figures here.

How our strategy fits into a portfolio of traditional asset classes and hedge funds, please click here.

12 Month Rolling Correlation

Past performance is not necessarily indicative of future results. Alternative investments, including those offered by Melissinos Trading, are speculative,
involve substantial risk, and are not suitable for all investors.

U.S. Stocks (S&P 500 Index); U.S. Bonds (U.S. 10-year Note); Real Estate (iShares U.S. Real Estate; ticker IYR); Hedge Funds (Barclay Hedge Fund Index).

This information is produced by Melissinos Trading, LLC (the “Advisor”). For all of 2011, the Advisor’s performance reflects the composite performance of all accounts advised. Performance includes actively managed accounts with speculative trading profits as the objective. Performance does not reflect the performance of any one account, but rather a combination of the historical performance of multiple accounts and portfolios. Therefore, an individual account and a particular trading portfolio may have realized more or less favorable results than the composite indicates. From January 2012 to date, returns shown are actual returns of Melissinos Trading’s trading program “Eupatrid Commodity Program” as traded in Fund accounts. The returns represent the actual performance of all of the Fund accounts traded as a whole. The performance includes a transition period between November 2011 – December 2011 where no trading took place. Records, which document and support this performance are available upon request. The returns above are net of management fees (paid monthly) and performance fees (paid quarterly net of any new trading profits); fees vary amongst Fund participants. Actual returns of individual Fund participants or private client accounts may deviate from trading program returns depending on trading level, investment timing, & fee differences, among other factors. Further information on performance & method of calculation can be found in the Disclosure Document, which is available upon request. No representation is being made that any account is likely to achieve profits and losses similar to those shown. All information contained here, is subject to change without notice. Important information about the Eupatrid Commodity Program including risks, objective, strategy and fees is contained in the disclosure document. This is not and may not be used as a recommendation or a solicitation.

Historically, trend-following strategies perform very well during stock market declines.

When stocks fall, overall market volatility tends to increase. By definition, when volatility increases, trends emerge; not in just stocks, but commodities, bonds and currencies.

Adaptive managers like Melissinos can reap sizable gains if they adapt to the changing conditions fast enough. As volatility expands, we try to get on the right side of the trends as fast as possible and we make sure our downside is limited (by using stop-losses).

Below, the chart shows how Melissinos performs on days when the S&P 500 Index falls at least 2%.

Since January 2011, the S&P 500 Index has fallen at least 2% on 36 separate occasions. On these days, Melissinos Trading has gained 0.98%, on average.

Days S and P

Past performance is not necessarily indicative of future results. Alternative investments, including those offered by Melissinos Trading, are speculative, involve substantial risk, and are not suitable for all investors.

This information is produced by Melissinos Trading, LLC (the “Advisor”). For all of 2011, the Advisor’s performance reflects the composite performance of all accounts advised. Performance includes actively managed accounts with speculative trading profits as the objective. Performance does not reflect the performance of any one account, but rather a combination of the historical performance of multiple accounts and portfolios. Therefore, an individual account and a particular trading portfolio may have realized more or less favorable results than the composite indicates. From January 2012 to date, returns shown are actual returns of Melissinos Trading’s trading program “Eupatrid Commodity Program” as traded in Fund accounts. The returns represent the actual performance of all of the Fund accounts traded as a whole. The performance includes a transition period between November 2011 – December 2011 where no trading took place. Records, which document and support this performance are available upon request. The returns above are net of management fees (paid monthly) and performance fees (paid quarterly net of any new trading profits); fees vary amongst Fund participants. Actual returns of individual Fund participants or private client accounts may deviate from trading program returns depending on trading level, investment timing, & fee differences, among other factors. Further information on performance & method of calculation can be found in the Disclosure Document, which is available upon request. No representation is being made that any account is likely to achieve profits and losses similar to those shown. All information contained here, is subject to change without notice. Important information about the Eupatrid Commodity Program including risks, objective, strategy and fees is contained in the disclosure document. This is not and may not be used as a recommendation or a solicitation.

The exchange traded futures that we trade are taxed differently than typical securities.

Trading futures markets comes with several advantages.

1)   60% Long Term Gains / 40% Short Term Gains: Futures markets are marked to market at the end of ever year. No unrealized gains exist. Regardless of holding period, gains are treated as 60% long term capital gains and 40% short term capital gains.

2)   No Trade by Trade Accounting: Futures investments do not require the accounting of individual trades. Unlike when investing in stocks, this rule saves you tons of time and effort from having to peruse through pages of brokerage statements.

3)   No Capital Gains Paid When Withdrawing Capital (fund investors only): Limited partners do not pay capital gains on the difference between their sales price and purchase price since they have already paid tax via their K1 figures each year.

4)   Losses Can Be Carried Backwards Three Years: If you lose money in any year, you may offset prior years’ gains up to that loss amount.

5)   No Wash Sale Rules: In securities, a wash sale is when an individual sells or trades a security at a loss, and within 30 days before or after this sale, buys a “substantially identical” stock or security.

Performance Statistics

Hedge Funds (Barclay Hedge Fund Index); CTAs (Barclay CTA Index). The Barclay CTA Index is a leading industry benchmark of representative performance of commodity trading advisors. There are currently 535 programs included in the calculation of the Barclay CTA Index for the year 2015, which is un-weighted and rebalanced at the beginning of each year. To qualify for inclusion in the CTA Index, an advisor must have four years of prior performance history. Additional programs introduced by qualified advisors are not added to the Index until after their second year. These restrictions, which offset the high turnover rates of trading advisors as well as their artificially high short-term performance records, ensure the accuracy and reliability of the Barclay CTA Index.

Melissinos Trading’s performance is based on a model account that is charged a 1% management fee (paid monthly) and a 20% performance fee (paid quarterly net of any new trading profits).

We design our strategy with the intention of performing consistently year in and year out.

We do not expect to make money every day, month or year but we do aim to achieve profitability ~75% of the time in any 6 to 36-month rolling period. We believe the odds of an investor achieving success with us improves as their holding period lengthens.

The chart below shows Melissinos’ profitability over various time frames.

We encourage prospective investors to have at least a five-year time horizon when considering an investment with us.

Time Window Performance

Past performance is not necessarily indicative of future results. Alternative investments, including those offered by Melissinos Trading, are speculative, involve substantial risk, and are not suitable for all investors.

This information is produced by Melissinos Trading, LLC (the “Advisor”). For all of 2011, the Advisor’s performance reflects the composite performance of all accounts advised. Performance includes actively managed accounts with speculative trading profits as the objective. Performance does not reflect the performance of any one account, but rather a combination of the historical performance of multiple accounts and portfolios. Therefore, an individual account and a particular trading portfolio may have realized more or less favorable results than the composite indicates. From January 2012 to date, returns shown are actual returns of Melissinos Trading’s trading program “Eupatrid Commodity Program” as traded in Fund accounts. The returns represent the actual performance of all of the Fund accounts traded as a whole. The performance includes a transition period between November 2011 – December 2011 where no trading took place. Records, which document and support this performance are available upon request. The returns above are net of management fees (paid monthly) and performance fees (paid quarterly net of any new trading profits); fees vary amongst Fund participants. Actual returns of individual Fund participants or private client accounts may deviate from trading program returns depending on trading level, investment timing, & fee differences, among other factors. Further information on performance & method of calculation can be found in the Disclosure Document, which is available upon request. No representation is being made that any account is likely to achieve profits and losses similar to those shown. All information contained here, is subject to change without notice. Important information about the Eupatrid Commodity Program including risks, objective, strategy and fees is contained in the disclosure document. This is not and may not be used as a recommendation or a solicitation.