Hypothetical Performance - April 16th, 2008

We officially began back testing and forward testing our system upgrades today. We are pouring through enormous amounts of data trying to establish the most profitable combinations for each pair. We began our testing with 13 pairs. These pairs will undoubtedly change as our computerized tester comes online. In the mean time, all data is being analyzed by hand. I have personally spent nearly 12 hours so far today alone testing hundreds of combinations while making 34 test trades on 13 pairs. This will be a daily routine for the next 45 days. By the end of this period, we hope to have 16 auto traded pairs on the Intra-day, and an improved GBP/USD system.

The following is the hypothetical results of our "beta" system upgrades:

I) INTRA-DAY UPGRADED STRATEGY (April 16th, 2008)

GBP/JPY = -0.06%
USD/JPY = -0.49%
GBP/USD= +0.81%
EUR/JPY= -0.36%
EUR/USD= +0.61%
EUR/GBP= -0.02%
AUD/JPY= -0.49%
AUD/USD= +1.30%
EUR/AUD= +0.01%
CHF/JPY = +0.40%
USD/CHF= +0.15%
EUR/CHF= -0.21%
GBP/CHF= -0.06%
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TOTAL = +1.59%

6 pairs had a winning day
7 pairs had a losing day


II) GBP/USD UPGRADED STRATEGY

GBP/USD = +1.23% (1% Risk)

TOTAL DAILY HYPOTHETICAL = + 2.82%

We will be shooting in the dark on our triggers (especially for the GBP/USD) until our auto trader and back tester are finished within the next week or so. We have far too little data up until this point to really know the effectiveness of our changes. I will keep you all updated as the progress continues.

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FYI

Our previous system would have finished the day as follows:

GBP/JPY = -0.25%
USD/JPY = -1.96%
GBP/USD= +1.75% (at 2% risk)
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TOTAL = -0.46%