Trade with Integrity

Informative Overview of Aurora Futures Corporation

Integrity Futures Group (IFG) has long been a proponent of managed futures as an important component of an investor’s balanced asset allocation. IFG researches Commodity Trading Advisors (“CTAs”) across the industry that we feel we can recommend to our customers. These CTAs can be established or emerging, but in our opinion they all share a few things in common including a disciplined investment approach, a positive track record, and a strong management team. When IFG finds such CTAs, we attempt to work closely with them to educate suitable investors regarding the benefits and the risks associated with making an investment.

Introducing Aurora Futures Corp. (AFC)

When it comes to risk management and trading, we believe AFC’s trader, David Seibel, has a positive disciplined investment approach and good credentials. You be the judge! Below, please find an informative overview covering AFC. Should you be interested in learning more information after reading this overview, please ask your broker for a copy of AFC’s disclosure document which contains more complete information. Be advised that you should read and understand the current disclosure document before investing.

David Seibel – AFC’s Trader

Mr. Seibel graduated with a Bachelor of Science degree from Worchester Polytechnic Institute in 1985 in management/engineering and received an MBA from the Fordham School of Business in 1991. His area of concentration was in international finance and economics. It was while studying for his MBA that Mr. Seibel developed a keen interest in commodities, foreign exchange and developing trading systems. His new found areas of interest were in turn enhanced and refined by his experience in the working world.

Upon completing his undergraduate work, Mr. Seibel was offered a position at the research firm Sanford Bernstein. In addition to performing financial analysis, part of his job entailed evaluation of P&L statements and balance sheets. On the job, Mr. Seibel discovered rather quickly that prudent management of risk was one of the most important factors in determining a company’s likely survival and success. As a result, Mr. Seibel was determined to learn all he could about risk management from a - z. The best way to broaden his horizons, he believed, was to gain front line exposure by working for a diverse group of Fortune 500 companies, which is precisely what he did.

While earning his MBA, Mr. Seibel was recruited by Random House, one of the nation’s largest publishing houses. In his role as Manager of Treasury Operations he directed domestic and international cash and risk management.

After three years at Random House, Mr. Seibel was offered the position of Director of Global Treasury by Allied Signal, now a part of Honeywell. His focus there was on cash management and the risk management of the company’s cash and foreign exchange assets. He also finished his MBA while at Allied Signal.

His success in cash and risk management at Honeywell caught the attention of Estee Lauder, which subsequently brought him aboard as Director of Global Treasury Operations. At Estee Lauder, Mr. Seibel developed a hedging program on one billion dollars in foreign exchange exposure using 40 different currencies which significantly reduced foreign exchange risk on the firm’s net income.

After four years at the cosmetics firm and having demonstrated a record of success in trading cash and financial risk management there, Mr. Seibel caught the eye of Revlon where he was recruited as Director of International Treasury, managing cash and financial risk management for Revlon’s international affiliates. At Revlon, Mr. Seibel functioned on multiple levels, including managing the pension fund investments for Revlon Chairman Ron Pearlman’s affiliates through MacAndrews & Forbes. As a result of his efforts, he was appointed to the role of Corporate Treasurer of the camping goods company, Coleman. He worked at Coleman until it was sold to Sunbeam where Mr. Seibel was appointed Chief Financial Officer.

Aurora Futures Corporation

After serving some four years at Revlon and the affiliated companies of MacAndrews & Forbes and 14 years in total as a cash and financial risk manager for other Fortune 500 firms, Mr. Seibel decided he had learned enough to be a potentially successful cash risk manager for the purpose of trading foreign currencies and commodity futures. In January 2000, he established Aurora Futures Corporation to leverage his business and market expertise. Mr. Seibel spent the next five years defining his strategies and developing systems for trading foreign exchange, commodity futures and options as well as the development of trading strategies for other traders. During this period, Mr. Seibel primarily traded his own funds.

Mr. Seibel’s friends soon learned of his success and asked him to trade on their behalf. He subsequently registered his firm as a CTA in 2004 and began trading both individual customer accounts and a fund trading in the foreign exchange market.

Aurora Diversified Day Trading Program (DDP)

According to Mr. Seibel, the Aurora Diversified Day Trading Program was designed and developed specifically for the customers of Vision Financial Markets to have a higher level of cash and risk management than his other trading programs without sacrificing performance. The program trades a diversified basket of commodities on an intra-day basis. Trading is limited to the highest volume period of the trading session and all trades are closed by the end of the trading day leaving NO overnight exposure to the account.

The objective of the trading program is to profit from trends that take place in futures contracts regardless of direction. The trading vehicle for the program may be any futures contracts traded on futures exchanges located in the United States with the exception of stock index futures. There will be no options or forex trading in this program.

The methodology used for this trading program can be considered as an intra-day trend breakout system. It looks for points in the market where a breakout is likely to occur and a trend begin. A buy or sell order is then placed above or below the market to enter when the point of the anticipated breakout is reached. Once in a trade the overall goal is to quickly exit those positions that prove to be incorrect and maintain those that are profitable. The methodology is also designed with proprietary filters that prevent or limit trading when the risk is too great or the likelihood of choppy trading exists.

Notionally Funded Accounts

The minimum account is $100,000. However, AFC will take $50,000 cash notionally traded as $100,000. As a special consideration to clients of Integrity Futures Group the adviser will charge management fees based on the cash invested, not the notionally traded amount. Thus, if an investor funds an account with $50,000 cash notionally traded as a $100,000 account, the CTA management fee will be based on $50,000 not $100,000 as would normally be the case. The adviser reserves the right to charge their management fee on the notionally traded amount at their discretion. However, this will not apply to investors who open an account with Aurora Futures Corp. before they make the change to charging their management fee to the notionally funded amount. Investors should be aware that funding an account with notional equity may potentially cause larger drawdowns.

Conclusion

We believe the Aurora Diversified Day Trading Program may be suited for these volatile times. It also addresses one of the greatest concerns investors have about futures trading by exiting all positions by the end of each day thus eliminating the potential for substantial overnight losses! Please be advised, however, that due to the day trading nature of the program as compared to other programs that are longer term in nature, a larger number of trades may be executed and this will lead to a proportionally higher amount of commissions and fees paid by the customer. Their prudent money management parameters are appealing to us from a risk management perspective. Just as appealing is the uniqueness of the program and the non-correlation to all of our other recommended CTAs programs as well as most other types of investments. We believe the Aurora Diversified Day Trading Program may provide investors a way to diversify their portfolios, participate in the commodities markets and potentially capitalize on the up and down market volatility we may see for years to come. Please be advised that trading futures and options involves substantial risk of loss and is not suitable for all investors. There are no guarantees of profit no matter who is managing your money. Past performance is not indicative of future results.

This informative overview is meant for informational purposes only and is not considered sufficient basis to make an investment. Please be sure to obtain and read the official risk disclosure document for Aurora Futures Corporation, which will contain complete details.

For more information or if you’re considering opening an account give Integrity Futures Group a call at 800.358.3205

Track Record of NDX Capital Management (Shadrach Program)

2004: +31.80% (started in September 2004)

2008: +67.53%

From 9/2004-9/2006 the program was traded as The Simpson Trading Green Program. The NDX Shadrach Program employs the exact trading strategy of the Simpson Green Program.

Worst monthly *drawdown: -21.53% (April 2005). *Drawdown means losses experienced by the composite over a specified period. Worst peak to valley drawdown: -21.53% (April-May 2005).

We believe most investors would agree that NDX’s investment approach and potential ability to provide positive returns in virtually any economic environment is particularly appealing. It is important to note, however, that there is no guarantee that the CTA will continue to be profitable in future volatile markets.

Past performance is not indicative of future results. Trading futures and options involves a substantial risk of loss and is not suitable for all investors. Please be advised that Introducing Brokers may charge a start-up fee of up to 6% and that above results have not been adjusted for such a fee.

Through both bull and bear markets, NDX has provided investors positive yearly returns primarily utilizing the hog futures market. Somewhat predictable seasonal patterns emerge considering that the animal’s life cycle is planned around the higher demand that typically occurs during holidays such as Christmas, Easter and the summer barbecue season. NDX’s trading focuses on attempting to exploit these seasonal patterns as well as opportunities in the periods in between. It is important to note, however, that fundamental factors, seasonal and weather trends, and current events may have already been factored into the markets.

Shadrach’s minimum account balance is $100,000, other CTA programs are available for as low as $25,000 and broker assisted accounts for as low as $5,000.00.

For more information or if you’re considering opening an account give Integrity Futures Group a call at 800.358.3205

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS.

The Eurodollar futures market is one of the most heavily traded and liquid markets in the world. The price of the Eurodollar contract moves opposite to interest rates. With interest rates at near record-lows and the price of the Eurodollar at near record-highs, we think now would be an excellent time to investigate limited-risk opportunities.

Please call Integrity Futures Group at 800.358.3205 to discuss our latest market outlook and specific ideas.

The risk of loss associated with trading futures and options on futures can be substantial. Each investor must consider whether this is a suitable investment given their current financial condition.

Commodities Are Not For Joe And Josephine Average, But Now Is One of the Better Times In History To Get Started.

Absence of understanding triggers cowering fear in the hearts and minds of the average investor when contemplating an investment in futures or commodities. However, one who ventures to ascertain even a rudimentary knowledge of how the markets work will see the benefit and potential for massive financial gain. Commodities don’t behave like traditional stocks, but there are many who have taken this bull by the horns and generated fortunes that will last for generations.

Example 1:

George Soros and Jim Rogers created would become the Quantum Fund in 1973 with $6 MIL in assets. By 1980 the fund had grown to $381 MIL. In 1992 Soro’s Quantum Fund became famous for “breaking” the bank of England. Soros had bet his entire fund in a short sale on the prediction that the British Currency would drop in value, it did. Soros netted a profit of $1 Billion from that trade.

Example 2:

From the Washington Post: “Hillary Rodham Clinton was allowed to order 10 cattle futures contracts, normally a $12,000 investment, in her first commodity trade in 1978 although she had only $1,000 in her account at the time, according to trade records the at White House.

The computerized records of her trades, which the White House obtained from the Chicago Mercantile Exchange, show for the first time how she was able to turn her initial investment into $6,300 overnight. In about 10 months of trading, she made nearly $100,000, relying heavily on advice from her friend James B. Blair, an experienced futures trader.”

Mrs. Clinton received a lot of flack for this investment scenario. But setting politics and ethics aside, in 10 months she earned nearly $100,000. Even if she had bought the contracts for $12k, her investment grew by over 700%.

The examples above are extreme, but not unrealistic. In fact they were real and they showcase the enormous potential of commodities and futures.

What’s So Hard?

Commodities are complicated by the sheer number of variables in play. We know from considerable experience that markets have their distinct personalities. The “personality” of a market is a function of numerous variables which include the following:

• The type of commodity
• Weather factors that affect the commodity
• Margin and tick value
• Size of the contract
• Market participants
• Sensitivity to political events (domestic and internationally)
• Perishability or storability of the commodity
• Cash settlement or actual delivery
• Warehouse procedures of the contract specifications and
• Exchange at which the commodity is traded

Experienced traders stay informed about the factors affecting each market, therefore they can make educated decisions based on current conditions, historical numbers and trends. Joe and Josephine are at a clear disadvantage here if they attempt to manage these investments themselves without proper preparation. However, You don’t have to be an experienced trader to score big on a few well placed trades.

Why Now?

This one is pretty basic. If you ask anyone when the financial crisis will end, what’s their response? Next Month?, …Later this year?, …When?

Common opinion is that this recession will not subside until the housing market hits bottom. Many have said that we may have hit bottom but not THE bottom. Many predict it will take years. In the meantime, credit is still very hard to come by. What does that mean?

Jim Rogers has invested in a number of agricultural commodities futures contracts based on the reality that farmers can’t get loans. If farmers can’t buy supplies to culivate their crops then the inventory will diminish. When the supply goes down, demand goes up. Basic economics tells us that when demand increases so do prices.

What Else?

You can deny a lot of things, but history isn’t one of them. Statistics recorded over the last 100+ years show that when the stock market is in a bear trend and dropping, commodities are in a bull trend. No one can deny that the stock market is bear. Experts like Jim Rogers (mentioned above) Marc Faber, Peter Schiff and others have been predicting that the bull market in commodities will last for several more years.

Commodities like oil are finite and non-renewable.

New commodities in the energy field are just getting started.

Emerging market nations like China and India, while certainly affected by the slowing economy, are still growing.

In Closing

Commodities and futures in particular are a zero-sum game. When one side of an option on a futures contract wins, the other side loses. Nobody wins all the time. But there is a regulated, documented history of all the trades that have ever taken place and several data processing institutions (like BarclayHedge) that will give you the info for free. Other resources like those found in the Tools section of Morningstar give you performance ratings of funds, traders, ETF’s and more.

Look, I don’t give a damn what you do. But it drives me crazy when such a blatant opportunity exists and people are too scared to take advantage of it. My recommendation, let a pro handle it for you. Yes you have to pay a commission, so what. If they make you better than 700% in 10 months, who cares? People with ungodly amounts of money are investing in commodities. Why can’t you?

CLOSING GRAIN COMMENTS
by Duane Lowry
Monday, April 13, 2009

Please call Integrity Futures Group at 800.358.3205 to discuss our latest market outlook and specific ideas.

FUTURES:

Corn was the anchor of the floor the entire session, never leaving negative territory and finishing down 2 ¾ cents. New news was limited. Technical conditions remain vulnerable and can easily encourage additional selling activity during the next few days.

Soybeans traded in a wide range and somewhat erratic, with the session highs made late up 16 cents, settling up 14 ½ in the May. November finished up 5 ¼ cents. Short-term technical indicators are very vulnerable. There were some “last rally/too extended” signals found in today’s action. New fundamental news is limited.

Wheat quickly rallied from opening weakness, pushing 15 cents from those levels into the 11:30 timeframe. Prices eased much of the remaining session, probing into negative territory before finishing up 1 ¼ cents. New news was limited.

In summary, today was a very choppy session with multiple competing signals, in an environment where traders are having a difficult time determining what is influencing prices during the trading session. Outside markets were also active, but not necessarily offering a clear pattern with grain price movement. Many technical indicators offer signs of price vulnerability, making me very suspect of today’s strength in soybeans and the corn’s ability to avoid additional liquidation pressures in the days ahead.

WEATHER: Midday weather forecasts were largely unchanged from this morning’s discussion.

NEWS: At the time of the grain close…Crude oil futures were down $1.26; the US$ Index was down 120; Gold was up $10; and the Dow Index was down 33.

REPORT WATCH:

Monday night’s grain trade outlook: Today’s price action left traders with mixed interpretations…expect a weaker bias tonight.

This commentary is prepared from information believed to be reliable. No guarantee is made that any information is accurate or complete; and it should not be relied upon as such. Opinions expressed are subject to change without notice. © 2009 Early Market News, Inc, All Rights Reserved.

DISCLAIMER: The risk of loss associated with trading futures and options on futures can be substantial. Each investor must consider whether this is a suitable investment given their current financial condition.

Track Record of Dighton Capital CTA Limited (Dighton)

2003: +43.76% (started in July 2003)

2008: +23.36%

Worst monthly *drawdown: –33.56% (April 2007). *Drawdown means losses experienced by the composite over a specified period. Worst peak to valley drawdown: -36.91% (February 2007-April 2007).

Past performance is not indicative of future results. Trading futures and options involves a substantial risk of loss and is not suitable for all investors. Please be advised that Introducing Brokers may charge a start-up fee of up to 6% and that above results have not been adjusted for such a fee.

Through both bull and bear markets, Dighton has often provided investors positive returns utilizing the futures markets. Note that during the September and October 2008 market meltdown, Dighton’s performance was up 3.05% and 10.85% respectively. During this period the S&P 500 experienced a 25% decline, the largest on record since 1930. As of October 30, 2008, at least one out of every 10 stock funds with at least a one year track record lost half of their value in the previous 12 months, while more than 100 were down at least 60%. Over that same time period the average diversified mutual fund according to Lipper Inc. was down 40%. Please be aware that past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. There is no guarantee that the program will continue to experience profits in future volatile markets.

One may argue that Dighton was lucky in achieving 40% plus returns in one or two years. But achieving 5 consecutive end-of-year returns ranging from 32% to 95% in our professional opinion isn’t luck, but extraordinary and should be recognized as such by suitable investors. We believe most investors would agree that Dighton’s investment approach and potential ability to provide returns in virtually any economic environment is particularly appealing. Investors should be aware that past performance is not indicative of future results. Trading Futures involves substantial risk of loss and is not suitable for all investors.

For more information or if you’re considering opening an account give Integrity Futures Group a call at 800.358.3205

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS.