S I N G U L A R I T Y F XForeign Exchange Trading Strategy

RISK DISCLOSURE STATEMENTTHE RISK OF LOSS IN TRADING FOREX CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

COMPANY ABOUTTribelet Capital Management is a fund management company founded in 2013, with the purpose of incubating Bella Vita Fund, a multi-asset class, multi-strategic, absolute return fund. Many of the approaches within the fund are model-driven and autonomously executed without human intervention. The principles have over 30 years of combined experience in researching, building and deploying investment strategies across a wide range of global markets.

FOUNDERSThe firm was founded by two traders and computer specialists that wanted to combine their years of investment experience to focus on creating an innovative investment product. Lessons learned in their various prior roles are now being brought to bear on a series of investment models for both Bella Vita Fund and for the provision of trading signals to institutions around the world.

Kevin SaundersCIOA specialist in electronic trading across many international exchanges. In 2009 Kevin co-founded Non Correlated Capital which later became a licensed Commodity Trading Advisor (CTA) with more than USD 40 million under management. For more than a year Kevin occupied 1st place on the RAPA Trader Leaderboard (a performance tracking and ranking website) and produced more than 5yrs of consistently superior trading performance. He developed a highly successful training program featured in the Australian Financial Review called the “Joey Experiment”. Kevin was awarded the Dux of Victoria from FINSIA for the highest mark in the State and the National Subject Prize for a course on derivatives from the same institution.

James Roche CTOAlgorithmic strategy programmer and designer; a specialist in software for trading across multiple platforms and markets. Deeply experienced in futures, foreign exchange and equities trading; founded bespoke trading software company TradingCoders. For the past 10 years James has gained extensive experience in algorithmic trading system design, via his own research and through servicing his global trading clientele. James has built custom trading solutions for all styles of trading and has been the architect behind the trading systems of hundreds of sophisticated investment professionals worldwide. His understanding of execution management systems and the languages that drive trading automation has been invaluable in the development of our investment strategies.

TRIBELET FOREIGN EXCHANGE STRATEGYSingularityFX constitutes the foreign exchange portion of the Bella Vita Fund, multi-asset class offering. We are pleased to be able to offer this investment solution to global investors wishing to gain exposure to an algorithmic trading strategy that presides over a basket of currency pairs. Individual currency pairs are available, as well as the total system basket. We believe this offers unique flexibility for investors to choose for themselves the appropriate mix of currency exposure for their investment objectives.

SINGULARITY FX STRATEGY

OVERVIEWThe objective of the SingularityFX Trading Program is to deliver high, consistent and absolute, risk-adjusted alpha returns. The program’s investments are actively managed utilising a multi-systems approach with tightly controlled risk management and automated execution. Trading is over a broad basket of spot currency pairs. SingularityFX relies on statistical approaches and various mathematical techniques to inform its trading decisions. Multiple trading models are brought to bear to diversify opportunity. Two key components of a trading strategy’s character are the return and draw-down metrics. When two strategies are combined with a focus on minimizing signal correlation, the result is at best, a linear increase in draw-down versus a geometric increase in returns. This “return versus risk effect” is one of the key conceptual cornerstones of the SingularityFX, multi-strategic investment approach.

CURRENCY BASKETThe strategy trades over a basket of currencies listed below. The systems that trade each pair are designed to operate individually or in tandem with the remaining currencies in the basket, so investors can select either a single currency, or as many currencies as desired within the basket. Our research shows that even if several currencies are under-performing, trading the entire basket, rather than selecting the best current performers, provides superior risk adjusted returns over 1-3 year timelines. More currency pairs will be added in the near future.

SingularityFX Currency Basket

EURUSD AUDJPY GBPUSD CADJPYEURAUD AUDUSD GBPJPY *GBPAUDEURCAD AUDCAD EURJPY *GBPNZDEURNZD AUDNZD EURGBP *soon

BUILD PROCESSStrategies are built using a multi-step process.

Machine Learning

Computer builds a strategy from a collection of signalling and risk

management components

Two Stage Out of Sample Testing

Strategies must survive two separate out of sample market periods

Monte-Carlo Process

Remaining strategies must survive rigorous monte-carlo analysis

Zero Signal Correlation

Surviving strategies are then combined with near zero signal

correlation

SINGULARITY FX STRATEGY

MODEL LAYERINGEach currency pair has up to 4 trading models working together to generate alpha. When multiple systems are trading the same instrument with minimal signal correlation, the result is most often a geometric increase in returns with small, linear increase in drawdowns. However, in order to benefit from this effect, you will need an account which allows hedging.

1 Model

2 Models

3 Models

RULESET DIVERSITYEach strategy (45 in total) has its own set of trading rules covering entries, exits, stops and take profit. Some strategies are mean reverting in nature and others are breakout systems. Some are designed to always be in the market while others are more opportunitistic. All strategies are based on the daily timeframe and executions will occur around the same time every day (unless profit targets or stops are taken intra-day).

DIVERSITY IN TIME Each strategy has a different average holding period. Some strategies seek to profit from larger trends within the market while others can turn over positions in as little as a day. The multiple timeframe ap-proach helps to deal with choppy sideways markets which often impact medium term trend following approaches.

DIVERSITY OF OPPRORTUNITYEach strategy has positive statistical expectancy, but we cannot know the future. The philosophy of SingularityFX is to maintain a diverse strategic approach in order to capture opportunity from a wide variety of market conditions.

CONTACT

S I N G U L A R I T Y F XForeign Exchange Trading Strategy

TRIBELET CAPITAL MANAGEMENT PTY LTDACN 162 139 871

ADDRESSLevel 31, 120 Collins Street

Melbourne, VictoriaAUSTRALIA 3000

TELEPHONE+61 3 9013 7270

EMAILinfo@tribeletcapital.com.au

WEBSITEwww.tribeletcapital.com.au