Quay Capital Management Ltd.

Forex Interbank Program

Methodology The Quay Forex Program is a short-term systematic trading model, which exploits the intra-day movements between the US Dollar and the Swiss Franc, Japanese Yen, Sterling and the Euro. All of the program's trading techniques are based on extensively researched patterns of recognition of the short-term movements in the above currency pairs. Our research has identified that within the US and European trading time zones these markets offer continuous daily opportunities within mathematically derived and extensively researched parameters. Our trading system is designed to take advantage of these opportunities. It is an essential part of our investment belief that our trading model should be continuously upgraded and adapted to the dynamic nature of currency markets, and to achieve this objective the model is subject to continuous research and modification. Trading Strategy The Quay Forex Program looks to capture short term trading opportunities in the largest and most liquid US Dollar Cross Exchange rates. The short term and highly active nature of the model necessitate that it operates only in the most liquid of currency pairs. The model assesses each currency pair on the European market opening at approximately 6am GMT. It then forecasts the initial price direction for that day. Each position is controlled with a stop loss and a partial profit target. Any further gains in a position are held to the market close or the following days opening. Trailing stops are also employed to enhance the risk profile. The model updates continuously throughout the day and signals are generated and adjusted in each currency pair almost hourly. The strategy also adjusts its methodology slightly throughout the day to account for different features of markets in time zones. Approximately 90% of positions are exited the same day as they are initiated. This means that clients have minimal overnight exposure to markets and as a consequence risk is minimised and controlled. The average risk per trade is 0.2%.