Optionvue Info

8/6/2019 Optionvue Info

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Disclosure Document ofOptionVue Research, Inc.A Commodity Trading Advisor Registered with theCommodity Futures Trading CommissionAnd a Member of the National Futures Association

----------------------------------------------------------------------------------------------------------OptionVue Research, Inc.1117 S. Milwaukee Avenue, Suite C-10Libertyville, IL 60048(847) 837-1219 Telephone(847) 816-6647 Fax-----------------------------------------------------------------------------------------------------------------THE COMMODITY FUTURES TRADING COMMISSIONHAS NOT PASSED UPON THE MERITS OF PARTICIPATING

IN THIS TRADING PROGRAM NOR HAS THE COMMISSIONPASSED ON THE ADEQUACY OR ACCURACY OF THISDISCLOSURE DOCUMENT.OPTIONVUE RESEARCH, INC. INTENDS TO USE THISDISCLOSURE DOCUMENT BEGINNING APRIL 23, 2004.THIS DISCLOSURE DOCUMENT MAY NOT BE USED TO OPEN NEWACCOUNTS AFTER JANUARY 23, 2005.


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RISK DISCLOSURE STATEMENT

THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLYCONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. INCONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE

AWARE OF THE FOLLOWING:

IF YOU PURCHASE A COMMODITY OPTION, YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALLTRANSACTION COSTS.

IF YOU PURCHASE OR SELL A COMMODITY FUTURE OR SELL A COMMODITY OPTION, YOU MAY SUSTAIN A

TOTAL LOSS OF THE INITIAL MARGIN FUNDS AND ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKERTO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BECALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON

SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUIRED FUNDSWITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLEFOR ANY RESULTING DEFICIT IN YOUR ACCOUNT.

UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE APOSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A "LIMIT MOVE".

THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A "STOP-LOSS" OR

"STOP-LIMIT", WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKETCONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.

A "SPREAD" POSITION MAY NOT BE LESS RISKY THAN A SIMPLE "LONG" OR "SHORT" POSITION.

THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINSTYOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.

IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FORMANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO

THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIRASSETS. THIS DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF THE FEES TO BE CHARGED TOYOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR ON PAGE 5.

THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE

COMMODITY MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY THIS DISCLOSURE DOCUMENT ANDCOMMODITY TRADING BEFORE YOU TRADE, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORSOF THIS INVESTMENT ON 8.

THIS COMMODITY TRADING ADVISOR IS PROHIBITED BY LAW FROM ACCEPTING FUNDS IN THE TRADINGADVISOR'S NAME FROM A CUSTOMER FOR TRADING COMMODITY INTERESTS. YOU MUST PLACE ALL FUNDSFOR TRADING PROGRAM DIRECTLY WITH A FUTURES COMMISSION MERCHANT.


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Table of Contents Page

Introduction to the Advisor 3

Business Background of Principal 3

Trading Program 3

Fees 5

Introducing Broker and Futures Commission Merchant 6

Conflicts of Interest 7

Principal Risk Factors 8

Litigation 11

Required Performance Disclosures 11

Hypothetical Assumptions 12

Hypothetical Results 12

Enclosures:Commodity Advisory AgreementAcknowledgement of Receipt of Disclosure DocumentLimited Power of AttorneyFee Payment Authorization


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INTRODUCTION TO THE ADVISOR

OptionVue Research, Incorporated

OptionVue Research, Inc. (OVR) is an Illinois corporation organized February 11, 2002,and is registered as a commodity trading advisor with the Commodity Futures Trading

Commission. OptionVue Research, Inc. became a member of the National FuturesAssociation on February 24, 2003 and is also registered with the State of Illinois as aRegistered Investment Adviser.

The sole principal is Leonard Yates. The address of OptionVue Research, Inc. is 1117 S.Milwaukee Avenue Suite C-10, Libertyville, Illinois 60048. The telephone number is(847) 816-6610 and the facsimile number is (847) 816-6647.The Date of this Disclosure Document is April 23, 2004.

BUSINESS BACKGROUND OF PRINCIPAL

Leonard Yates

Leonard (Len) Yates is a professional programmer with over 25 years of experience insoftware development. In addition to being President of OptionVue Research, Inc., he isalso President and founder of OptionVue Systems International, Inc., which specializes inoptions trading software and services. Prior to founding OptionVue Systems in 1983,Mr. Yates was a software engineer at Tandem Computers, and a hardware and softwareengineer at IBM Corp. Mr. Yates has been an active options trader for many years, and isthe author of the book, High Performance Options Strategies. He has studied corporatefinance and financial models since the founding of his company and has made importantcontributions in the field of options pricing models -- the most notable being the "Yatesadjustment" to the popular Black-Scholes model as applied to American-style puts. Byaccounting for the possibility of early exercise, this model has the advantage of bothspeed and accuracy, mutually exclusive qualities with other models. Mr. Yates holds aBachelor of Science degree in Electrical Engineering from Purdue University, with

honors.

In addition to his present role as the principal for OptionVue Research (under NFA ID#0275348), Mr. Yates is also a CTA, non-NFA Member (NFA ID# 275347) sinceJanuary 15, 1997. As of this documents filing, this latter registration is pendingwithdrawal.

TRADING PROGRAMS

Ongoing Research

OVR is researching trading approaches on a continuing basis, and may introduceadditional managed account programs in the future that involve various commodity


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interests. For purposes of this disclosure document, commodity interests may includecommodities, commodities futures contracts, commodity options, forward contracts, andother financial instruments, securities, stock, financial and economic indices, and itemswhich are now, or may hereafter be, the subject of futures contract trading, futurescontracts, options on futures contracts and physical commodities, cash and forward

contracts, foreign exchange commitments, deferred delivery contracts, leverage contractsand other commodity-related contracts, agreements and transactions, and securities (suchas U.S. treasury bills) approved by the CFTC for investment of customer funds.

Overview of Current Programs

The Advisor currently offers one managed futures program involving the S&P 500futures and futures options contracts, and also the e-mini S&P 500 futures and futuresoptions contracts. No other commodity interests are traded by OVR at this time.

The OVR Swing 500 program seeks capital appreciation by assuming positions in theS&P 500 futures and futures options contracts (and e-mini S&P 500 futures and futuresoptions contracts) that exploit both increases and decreases in the S&P 500 index.

This program involves the sale of call and put options on futures contracts.

OVR Swing 500 Program

The trading approach used in the OVR Swing 500 program involves two strategiesapplied concurrently.

First, a short to intermediate term directional trading system is applied to the S&P 500index futures, and is based on technical price parameters rather than fundamental factors.The Advisor believes that consistent returns are more likely obtained through observationof historical price movements within a technical analysis rather than by fundamentaleconomic analysis. Several technical analysis tools are applied, and a lengthy set oftrading rules determine entry and exit points. The intent of this strategy is to captureprofits generated by large and fast price movements in highly volatile market conditions.

Second, an option selling program is used to generate returns when markets experiencelow volatility. Typically, this means selling out-of-the-money call options and putoptions. The trade timing, strike price location, contract quantity, and positionadjustment parameters are determined systematically, but are subject to change withoutnotice as additional research dictates. Although either of these approaches may have apositive profit expectancy, a more satisfactory account performance is expected whencombining the two strategies together.

The trading methods of the Advisor are proprietary and confidential. The descriptioncontained in this document, therefore, is general and is not intended to be exhaustive. TheAdvisor may refine or change the implementation of its approach (including but notlimited to technical factors and/or money management principals) without prior notice to


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or approval by customers. There can be no assurance that the Advisor's approach totrading will yield the same results as it has in the past.

Account Commitment

Clients should be able to commit funds in a program for at least twelve (12) months for a

period of adequate evaluation. As in any investment, profit, as well as loss, in commoditytrading can and will occur. The program is, therefore, only for those clients who alone orin conjunction with their representative are able to both appreciate and bear the financialrisks described herein. The minimum account size on new accounts is $40,000.However, the Advisor reserves the right to accept lower funding amounts.

FEES

Management Fees

For all accounts managed by OVR, the Advisor charges a management fee on a monthlybasis at an annual rate of 2% to 3% of the net asset value in each account at the end ofeach month. The term "Net Asset Value" means the net assets in the account (total assetsless total liabilities), including interest income and unrealized profits and losses on openpositions. If a client withdraws from the program on a date other than at the end of amonth, management fees will be calculated and billed as if such termination were the endof the month.

Where an account is partially-funded, the monthly management fee shall be taken as apercentage of the account's nominal size, defined as the dollar amount that the Advisorand its clients have agreed in writing will determine the level of trading in an accountregardless of the actual assets on deposit with the FCM. Please refer to the ManagementFee Matrix for Partially Funded Accounts to see the effect on the management fee forpartially funded accounts.

Management Fee Matrix for Partially Funded Accounts

Percentage Funded 100% 70% 50%Management Fee 3% 4.29% 6%

Incentive Fees

The Advisor charges a quarterly incentive fee of 0% to 30% of new net trading profits.This fee is calculated and accrued monthly and due at the end of each calendar quarter.New net trading profits are the sum of: (a) gross realized profits and losses during theperiod plus (b) the change in net unrealized profits and losses on open positions as of theend of the period, minus (c) all brokerage commissions and transaction fees and chargespaid or accrued during the period and (d) management fees and (e) cumulative net losses,if any, carried over from preceding periods. The incentive fee is payable only oncumulative profits in the account. If the account incurs a loss after an incentive fee hasbeen paid, OVR will retain the fee, but will not receive another incentive fee until new


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net trading profits have been earned. If funds are withdrawn from the account other thanthe end of a calendar quarter, incentive fees due will be paid to OVR as determined bydividing the value of the withdrawal by the value of the account immediately before suchwithdrawal and multiplying that fraction by the amount of the incentive fee accrued atthat time. If you withdraw funds from the account at a time when the account has a loss

carryforward amount, the trading loss that must be recovered before there will be new nettrading profits will be determined by dividing the value of the account immediately aftersuch withdrawal by the value of the account immediately before such withdrawal andmultiplying that fraction by the amount of the unrecovered trading loss at the time of thewithdrawal. If trading losses occur in the account in more than one calendar quarterwithout an intervening payment of an incentive fee, and the value of the account isreduced in more than one calendar quarter because of withdrawals, then the trading lossin each such calendar quarter shall be reduced in accordance with the above formula, andonly the reduced amount of trading loss will be carried forward to offset future tradingprofits.

The Advisor will bill all fees with the billing sent directly to the FCM to be paid out ofthe Clients account. The Advisor reserves the right to negotiate different fees fordifferent clients and share any portion of these fees with third parties in accordance withregulatory and industry standards.

INTRODUCING BROKER AND FUTURES COMMISSION MERCHANT

Futures Commission Merchants (FCM)

Client accounts will be maintained at Peregrine Financial Group, Inc.

PFG, Inc.

Peregrine Financial Group, Inc. (PFG) is an Iowa corporation with its principal addressat 190 S. LaSalle Street, 7th Floor, Chicago, Illinois 60603. PFG is registered with theCommodities Futures trading Commission (CFTC) as a futures commission merchant(FCM) and is a member of the National Futures Association (NFA).

PFG will maintain the Customers account on a fully disclosed basis. The positionsand funds of the Customer held by PFG will be commingled with those of othercustomers, but segregated from those of the Broker, pursuant to the CFTCs rules.

PFG clears its customers transactions on an omnibus basis. PFG will be responsible fortransaction, order execution of futures and options contracts, as well as certainadministrative duties, such as record keeping, transmittal of confirmation and statementsto the customer, and calculating equity balances and margin requirements for theCustomers account.

PFG has not assisted in the preparation of this disclosure document except to the extentthat it has provided information relative to a description of itself, its limited role and thematerial legal proceedings that involves PFG. PFG is not connected in any way with this


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trading program, other than in its capacity as an FCM for the Customers account.Accordingly, any person who is solicited in connection with this trading program shouldrealize that those who solicited his investment are not representatives of PFG, and PFG isnot involved with this trading program except in its limited role as a carrying broker. Theopening and maintenance of the Customers accounts with PFG does not constitute an

endorsement or recommendation of this trading program by PFG.

Disciplinary History

During the five years preceding the date of this Disclosure Document, PFG was thesubject of one administrative action initiated by the Division of Trading and Markets ofthe Commodities Futures trading Commission (CFTC). During the course of theMarch 1999 audit conducted by the CFTC, it was discovered that PFGs interpretation ofthe requirements of the Act and Regulations did not comply with the CFTCsinterpretation of it. The major discrepancy in question was related to the classification ofcurrent assets vs. non-current assets. As a proactive step, PFG has implementedinitiatives and changes to its accounting practices and regulatory reporting. OnSeptember 7, 2000, the CFTC accepted an offer of settlement submitted by PFG inwhich, without admitting or denying the allegations, PFG agreed to pay a fine of $90,000.In addition, PFG, without admitting or denying the necessity of the adjustments, hascomplied in full with the CFTC to meet their interpretations of the regulations andindustry accounting restrictions by reclassifying certain assets as non-current. Theseadjustments have not, nor will they, affect the operations or financial stability of thecompany.

Other than the aforementioned matter, there has been no other material, administrative,civil, or criminal proceedings against PFG or any of its principals with the preceding 5years of the date of this Disclosure document that would be material to a clients decisionto open and maintain a commodities account with PFG.

The Advisor, solely in reliance upon representations of the management of PFG, believesthat any pending litigation in which PFG may be involved will not have a material effectupon PFGs condition, financial or otherwise, and that such actions are not material toCustomers decision to have his account carried by PFG. PFG vigorously defends, as amatter of policy, civil litigation, reparations and arbitration proceedings brought against itand, in all such proceedings currently pending, the management of PFG has representedto the CTA that PFG has factually and legally sound defenses.

Introducing Broker

Clients are free to utilize the services of any introducing broker of their own choosing.

CONFLICTS OF INTEREST

Trading Multiple Accounts

The Advisor and its principals may manage the accounts of various clients, and theseother accounts might compete with a client's account for the same or similar positions in


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the traded markets. Because of price volatility, occasional variations in liquidity anddifferences in order execution, it may be impossible for the Advisor to obtain identicaltrade execution of all its clients. Such variations and differences may produce differencesin performance among client accounts over time. In an effort to treat its clients fairlywhen block orders for client's accounts are filled at different prices, the Advisor assigns

trades on a objective basis that attempts to be neutral in its allocation.

Proprietary Trading

OVR, the FCM, and their respective principals and affiliates may trade in the commoditymarkets for their own accounts and for the accounts of their clients, and in doing so maytake positions opposite to those held by Clients or may be competing with Clients forpositions in the marketplace. Records of this trading will not be available for inspectionby Clients. Such trading may create conflicts of interest on behalf of one or more suchpersons in respect of their obligations to Clients.

Because OVR, the Clients FCM, and their respective principals and affiliates may tradefor their own accounts at the same time they are involved in trading activities on behalf ofClients, prospective Clients should be aware that as a result of a neutral allocationsystem, testing a new trading system, trading their proprietary accounts moreaggressively or other actions such persons may from time to time take positions intheir proprietary accounts which are opposite of the positions taken for Clients.

Incentive Fees

In addition, a conflict of interest exists insofar as the Advisor is compensated on anincentive fee basis, which may increase the likelihood that the Advisor may engage intrading which is riskier than that which is described in the trading program. However, theAdvisor does not anticipate trading in such a manner.

Business Activities

The principal of the CTA is also the President of OptionVue Systems International, Inc.Consequently, a conflict may arise in regards to time devoted to multiple businesses.

Trading Errors

Though OVR will attempt to correct trading errors as soon as they are discovered, it willnot be responsible for poor executions or trading errors committed by brokers or itself.All errors, except those resulting from willful misconduct or fraud, will be considered acost of doing business.

PRINCIPAL RISK FACTORS

Trading commodity interest contracts involves a HIGH DEGREE OF RISK. In such

trading, the liability of the client is not limited to the initial investment or the equity in

the account, but extends to any and all losses. Although it is the intention of the


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Counterparty Creditworthiness

The Client could be unable to recover assets held at the Commodity Broker, even assetsdirectly traceable to the client, from the Commodity Broker in the event of a bankruptcyof the Commodity Broker. Although Futures Commission Merchants are required to

segregate customer funds pursuant to the Commodity Exchange Act, there is noequivalent, in the unlikely event of the Commodity Brokers bankruptcy, of the SecuritiesInvestors Protection Corporation insurance applicable in the case of securities brokerdealer bankruptcies. Off exchange transactions are also subject to the risk of counterpartyfailure and/or a counterpartys inability or refusal to perform with respect to suchtransactions. Any such default would deprive the client of any profit potential or force theclient to cover its commitments for resale, if any, at the market price and may result in aloss to the client. In addition, off exchange transactions are not subject to regulation bythe CFTC and therefore are not subject to the protections afforded to transactions effectedon a contract market.

Trading of Options Presents Certain Risks

A large number of options are traded on and off United States and non-United Statesexchanges. Each such option is a right, purchased for a certain price, to either buy or sellthe underlying physical commodity or security during a certain period of time for a fixedprice. Although successful options trading would require many of the same skills as doessuccessful securities trading, the risks involved are different.

Selling Options on Futures Contracts

An option on a futures contract gives the purchaser of the option the right, but not theobligation, to take a position at a specified price (the strike or exercise price) in theunderlying futures contract. The purchase of an option is referred to as its premium andis paid to the seller of the option. Market participants that sell options are known asoption writers or grantors. A primary reason for writing options is to earn the premiumpaid by the option buyer. If the option expires without being exercised (which is what theoption writer hopes will happen), the writer retains the full amount of the premium. If theoption buyer exercises the option, however, the writer of an option has unlimited risk.This is because any gain realized by the option buyer if and whe n he exercises the optionwill become a loss for the option writer. Stated another way, the writer of an option riskslosing the difference between the premium received for the option and the price of thefutures contracts underlying the option which the writer must purchase or deliver uponexercise of the option, which could subject the writer of a call option to an unlimited riskin the event of an increase in the price of the contract to be purchased or delivered. Theprice movement of the underlying futures contract determines whether the option expireswithout being exercised or whether the option is exercised because it is in-the-money.

Futures contracts prices are volatile. The profitability of the Advisors options tradingmay depend on anticipating the volatile price movements of the futures contractunderlying the options.


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Concentration

Because the OVR Swing 500 approach trades only the S&P 500 index futures and futuresoptions, clients should be aware that this program offers relatively less diversificationthan other CTA programs. OVR Swing 500 performance results depend solely on how

well the approach does in this one market.

LITIGATION

There have been no material administrative, civil or criminal proceedings, pending or onappeal, against the Advisor or its principals during the five years preceding the date ofthis Disclosure Document or at any time prior thereto.

REQUIRED PERFORMANCE DISCLOSURES

NEITHER THIS TRADING ADVISOR NOR ANY OF ITS TRADING PRINCIPALSHAS PREVIOUSLY DIRECTED ANY ACCOUNTS.

HYPOTHETICAL PERFORMANCE DISCLAIMER

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENTLIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NOREPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR ISLIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. INFACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEENHYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTSACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS ISTHAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OFHINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVEFINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CANCOMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUALTRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TOADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADINGLOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECTACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORSRELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OFANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLYACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICALPERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECTACTUAL TRADING RESULTS.

THIS TRADING ADVISOR AND ITS TRADING PRINCIPAL(S) HAVE HADLITTLE OR NO EXPERIENCE IN TRADING ACTUAL ACCOUNTS FOR ITSELF


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OR FOR CUSTOMERS. BECAUSE THERE ARE NO ACTUAL TRADINGRESULTS TO COMPARE TO THE HYPOTHETICAL PERFORMANCE RESULTS,CUSTOMERS SHOULD BE PARTICULARLY WARY OF PLACING UNDUERELIANCE ON THESE HYPOTHETICAL PERFORMANCE RESULTS.

Hypothetical Assumptions for the OVR Swing 500 Program

The OVR Swing 500 Program is new, and has no investors as of the date of thisdisclosure document. Therefore, to give potential investors an idea of how this programmight perform, hypothetical returns are shown below that were calculated based onvarious assumptions and parameters.

1) The $200,000 hypothetical account began trading the program on January 2,2001.

2) Returns are based on historic futures prices and futures option prices. In instanceswhen no option prices were reported, theoretical option prices were substituted.

3) Slippage and commissions are included in the return figures. Depending onmarket conditions, slippage was set at between 1/10 and 3/10 of an S&P 500point. Commissions are set at $12 per round turn for both futures and futuresoptions.

4) All Management and Incentive Fees are included as well. Management fees areset at 1/12th of 2% of the account balance at months end. Incentive Fees are setat 20% of New Net Trading Profits, as defined earlier in this document.

Hypothetical Results for the OVR Swing 500 Program

Name of CTA: OptionVue Research, Inc.Name of Trading Program: OVR Swing 500Inception of Trading by CTA: NAInception of Trading in Offered Program: NA# of accounts currently traded pursuantto the program as of April 23, 2004 NATotal assets under managementas of April 23, 2004 $0Total assets traded pursuant to theProgram as of April 23, 2004 $0Largest monthly draw-down: 9.68% / June 2002Worst peak-to-valley draw-down: 13.10% / April 2002

through July 2002Number of profitable accountsThat have closed: 0Number of losing accountsthat have closed: 0


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PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURERESULTS.

+

YTD: 6.95% 23.03% 1.40% 65.75%

Draw-down: Losses experienced by an account over a specified period.


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OptionVue Research, Inc.

1117 S. Milwaukee Avenue, Suite C-10

Libertyville, IL 60048

PHONE: (847) 816-6610

FAX: (847) 816-6647

COMMODITY ADVISORY AGREEMENT

with Limited Trading Authorization

and Power of Attorney Annexed

THIS AGREEMENT FOR ADVISORY SERVICES is made and entered into this ________ day of__________________, 20___, by and between OptionVue Research, Inc., hereinafter referred to as theAdvisor and ___________________________________________ hereinafter referred to as the Client.

THIS AGREEMENT IS ENTERED INTO BASED UPON THE FOLLOWING REPRESENTATIONS:

The Client has speculative capital for the principal purpose of investing in commodity futures and optionsand, if applicable, Foreign Currency Exchange markets, and has been informed and is fully cognizant of the

high risks associated with such investments.

This agreement is for the following managed trading program and related advisory fees as described in theOptionVue Research, Inc. Disclosure Document (the "Disclosure Document"). Specifically, the Client hasselected the following investment program for the account:

_________ OVR Swing 500 Program

IT IS MUTUALLY AGREED:

1. The Client shall open an account and/or deposit funds with Peregrine Financial Group, Inc. (PFG)hereinafter called the "Broker" for an account whose level of trading, risk, and advisory fees shall be basedon the account size.

2. The Advisor will cause commodity futures market contracts and/or options on such contracts, to bebought, sold, sold short or spread, and will have the exclusive authority to issue all necessaryinstructions to the Broker. All transactions shall be for the account and risk of the Client.

3. The Advisor's services are not rendered exclusively for the Client, and the Advisor shall be free torender similar services to others.

4. This Agreement shall remain in effect until terminated by the receipt of written notice of either partyto the other. The Advisor or Client may terminate this Agreement for any reason. Upon terminationof this Agreement, the open positions and subsequent management of the Account shall be the soleresponsibility of the Client.

5. The Client's account shall be charged for all commissions and fees arising from transactionsexercised in the administration of the account.

6. The Client agrees to inform the Advisor immediately if the Client is dissatisfied with the Advisor'sdecisions or actions, or if the Client is dissatisfied with the Broker's handling of the account.

7. The Advisor's recommendations and authorizations shall be for the account and risk of the Client.The Advisor makes no guarantee or representation that any of its services will result in a profit to theClient. The Client has discussed the risks of futures trading and understands those risks. The Clientassumes the responsibility for losses that may be incurred.


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8. The Client agrees to execute a limited trading authorization with the Broker authorizing the Advisorto enter orders for futures market contracts and/or cash market contracts for the Client's account. It isagreed and understood by the Client that the Advisor has no responsibility for the proper executionof orders by the Broker.

9. The Client agrees to authorize the Broker to make payments for the Client's account to the Advisor incompensation for services as set forth in the Disclosure Document, including a monthly management fee of_______% (________% annual) and a quarterly incentive fee of _____% on net new profits (as defined inthe Disclosure Document).

10. The Client acknowledges that Client has read a copy of the Disclosure Document, including the RiskDisclosure Statement. The Advisor makes no guarantee that any of its services will result in a profitor will not result in a loss for the Client. The Advisor will not be liable to the Client or to othersexcept by reason of acts constituting willful malfeasance or gross negligence as to its duties herein, anddiclaims any liability for human or machine errors in order to trade or not to trade Commodity Interest.

11. In the event that any provisions of this Agreement are invalid for any reason whatsoever, all otherconditions and provisions of this Agreement shall, nevertheless, remain in full force and effect.

12. This Agreement constitutes the entire agreement between the parties, and no modifications oramendments of this Agreement shall be binding unless in writing and signed by the participantshereto.

13. The Client acknowledges that should the Client's account become underfunded, trading profits andlosses on a percentage basis will be greater than if the account were fully funded and that additionalcapital may be required to maintain trading positions.

14. Any controversy between the parties hereto involving the construction or application of any of theterms, covenants, or conditions of this Agreement, shall on written request of one party served on the otherbe submitted to arbitration, and such arbitration shall comply with and be governed by the provisions of theIllinois Arbitration Act. The parties shall each appoint one person and the two (2) persons so chosen shallhear and determine the controversy. The decision of the arbitrators shall be final and conclusive upon both

parties hereto. The loser shall pay the costs of the other party or as otherwise apportioned by thearbitrators.

15. When market conditions warrant, the Advisor may reduce the number of positions normally held.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written onthe first page of this Agreement.

BY: _________________________________________Client(s):________________________________________ __________________________________________(Print Name) (Print Name, if joint)________________________________________ __________________________________________

(Address) (Address)________________________________________ __________________________________________(City, State, Zip) (City, State, Zip)________________________________________ __________________________________________(Telephone) (Telephone)________________________________________ _________________________________________(Signature) (Signature)


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PHONE: (847) 816-6610

FAX: (847) 816-6647

Acknowledgement of Receipt of

Optionvue Research, Inc. Disclosure Document and Customer Information

To Whom It May Concern:This is to acknowledge that I have received a copy of the Disclosure Document of OptionVue Research,Inc. dated ____________, describing the trading program pursuant to which my account will be directed.Read and acknowledged by:

_______________________________________ __________________________________________(Client's Signature) (Date)

_______________________________________ __________________________________________

(Client's Signature) (Date)


Commodity Trading Advisor

Customer Information

_______________________________________ __________________________________________

Last Name First M.I. Date

_______________________________________ __________________________________________Address City State ZIP

_______________________________________ __________________________________________Principal occupation or business Date of Birth

_______________________________________ __________________________________________Approximate Annual Income Approximate Net Worth

Please describe your previous investment and futures trading experience:.


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PHONE: (847) 816-6610

FAX: (847) 816-6647

LIMITED POWER OF ATTORNEY

TO: __________________________

The undersigned hereby authorizes OptionVue Research, Inc. (the Advisor) as his agent and attorney-in-fact to buy, sell (including "short" sales) commodities on margin or cash or forward currency transactionsor otherwise for the undersigned's account and risk including the purchase and sale of U.S. Treasury Billsand investments in money market funds accounts. The undersigned hereby agrees to indemnify and holdthe brokerage firm harmless from all loss, cost, indebtedness and liabilities arising therefrom.

In all such purchases and sales you are authorized to follow the instructions of the aforesaid agent in everyrespect concerning the undersigned's account with you; and except as herein otherwise provided, theAdvisor is authorized to act for the undersigned in the same manner and with the same force and effect as

the undersigned might or could do with respect to such purchases and sales as well as with respect to allother things necessary or incidental thereto, except that the Advisor is not authorized to withdraw anymoney, securities, or other property either in the name of the undersigned or otherwise other than that inconjunction with payment of fees owed to the Advisor.

The undersigned hereby ratifies and confirms any and all transactions with you heretofore or hereaftermade by the aforesaid agent on behalf of or for the account of the undersigned.

The authorization and indemnity is in addition to (and in no way limits or restricts) any rights which youmay have under any other agreement or agreements between you and the undersigned.

This authorization and indemnity is a continuing one and shall remain in full force and effect until revokedby the undersigned by a written notice addressed to you and delivered to you at the above address, but such

revocation shall not affect any liability in any way resulting from transactions initiated prior to suchrevocation. This authorization and indemnity shall inure to your benefit and that of your successors andassigns.

_______________________________________ _________________________________________Date Customer's Signature

_______________________________________ _________________________________________Date Customer's Signature

Witness:_______________________________ Or Sworn to and subscribed before me this ___ day of______________________, 20___.

Witness:_______________________________ Witness my hand and official seal.NotaryPublic:____________________________________

My CommissionExpires:___________________________________

Notary Seal

NOTE: This letter shouldbe witnessed by two individuals or notarized.


19/19

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PHONE: (847) 816-6610

FAX: (847) 816-6647

FEE PAYMENT AUTHORIZATION

TO BROKERAGE FIRM: Peregrine Financial Group, IncADDRESS: 190 S. LaSalle Street, 7th FloorCITY AND STATE: Chicago, Illinois 60603

Gentlemen:

Subject to the provisions of the Commodity Advisory Agreement of OptionVue Research, Inc. (theAdvisor), which the undersigned has executed, you are hereby authorized to deduct and remit directly tothe Advisor such monthly incentive, performance or other fees (Fees) as the Advisor requests on a

monthly basis.

The Advisor will inform you of the exact amounts due on the agreed-upon payment dates. Theundersigned acknowledges and agrees that the Advisor is solely responsible for the computation of Feesand authorizes you to rely on remittance instructions submitted by the Advisor completely without regardto amount.

This authorization will continue in effect until you have received written notice terminating it from theclient. Such notice will be mailed or delivered to the Advisor and to the Account executive handling thisaccount.

________________________________________ __________________________________Client's Signature Date

________________________________________Print Name

________________________________________ __________________________________Client's Signature Date

________________________________________Print Name

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