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Thank you for purchasing the "Serendipity 1.

1" Bond Trading System Four "Serendipity" System files are included in this archive: serendipity.txt The file you are now reading seren1.ela The Tradestation System ela file serpb.ela The Tradestation 2000i els file ua.lng 20 years of continuous contract, back-adjusted, day session onl y, NYFE futures data. ( If you are not using Tradestation or SuperCharts, the system rules are very simple and should be easy to code into any software) -------------------------------------------------------------------------------The System Documentation below contains the following information: "Serendipity 1.1" Bond Trading System (Report text format) Introduction Historical Results System Concept System Rules Tradestation Easy Language code in text form Instructions for "Transfer in" to TradeStation & SuperCharts & Import to TradeSt ation 2000i Instructions for Inserting Analysis Techniques Instructions for Cut and Paste to PowerEditor Trade by Trade Report -------------------------------------------------------------------------------"SERENDIPITY" BOND TRADING SYSTEM Version 1.1 Copyright 1999 by Charles LeBeau and David Elden Introduction Ser-en-dip-i-ty sought for. n. : the faculty of finding valuable or agreeable things not

The "Serendipity" Bond System was designed to be a short-term system that would trade successfully on the short side in order to complement and enhance our exis ting long only systems. However, as the Serendipity name implies, we were extre mely pleased to find that this short side system has excellent historical result s trading from the long side as well. In this report we present a historically profitable short term strategy that may be implemented to systematically trade t he Treasury Bonds futures market from both the long and short side. Hypothetical Test Results Before we discuss the rules of the system, we will present the hypothetical resu lts. Table 1 shows the hypothetical performance of the system tested over 11 yea rs of data. For testing purposes, we used continuously back-adjusted daily data. We ignored all night sessions, and all calculations were based on day-session-o

nly prices and ranges. $100 was deducted from every trade to simulate the effect s of commissions and slippage. The test period was from 1/4/88 to 4/30/99 with " maxbarsback" set to 50. ("MaxBarsBack" refers to the number of bars of data nece ssary to calculate the rules in a system. System rules begin to operate only aft er the MaxBarsBack period. The test period specified includes the MaxBarsBack p eriod, so that no trades are taken for the first 50 trading days of the historic al data.) This system trades much more frequently than our other Bond systems, trading 140 times over the last 11 years. Trading one contract since 1/4/88 would have resu lted in a gain of $67,031 with a maximum drawdown of $4,594. The system is reaso nably accurate with 68 percent winning trades (95 out of the 140 trades were win ners), and winning trades were larger than losing trades by a factor of 1.18. Th e average trade was $479, a respectable number for such a short-term system. The re were 13 consecutive winners and the maximum consecutive losers in the test pe riod was 3. The largest winning trade was $4,806 (a short trade) which accounted for only about 7% of the net profit, confirming that the net profits gained wer e not skewed significantly by a single big winner. A modest but respectable prof it factor of 2.50 summarizes the general efficiency of the system: it has made a gross profit of $111,843 versus a gross loss of $44,813 over the test period. Although this system is not as efficient as our long only systems, when we consi der that this system was designed to short bonds frequently during a period of s trongly rising historical price data we are more than pleased with these histori cal numbers. Table 1. Serendipity Bond System Historical Results (TradeStation format) Performance Summary: All Trades 1/4/88 to 4/30/99 Total net profit $ 67,031.25 Open position P/L Gross profit $ 111,843.75 Gross loss Total # of trades Number winning trades Largest winning trade $ Average winning trade $ Ratio avg win/avg loss Max consec. winners Avg # bars in winners Max intraday drawdown Profit factor Account size required 140 95 4,806.25 1,177.30 1.18 13 4 $ - 4,593.75 2.50 $ 4,593.75 Percent profitable Number losing trades Largest losing trade Average losing trade Avg trade(win & loss) Max consec. losers Avg # bars in losers Max # contracts held Return on account Open position P/L Gross loss Percent profitable Number losing trades Largest losing trade Average losing trade Avg trade(win & loss) 2 4 $ 0.00 $ - 44,812.50 68% 45 $ - 1,475.00 $ - 995.83 $ 478.79 3 3 1 1459% $ 0.00 $ - 20,156.25 78% 15 $ - 1,475.00 $ -1,343.75 $ 559.47

Performance Summary: Long Trades Total net profit $ 38,043.75 Gross profit $ 58,200.00 Total # of trades Number winning trades Largest winning trade $ Average winning trade $ Ratio avg win/avg loss Max consec. winners Avg # bars in winners Max intraday drawdown 68 53 2,056.25 1,098.11 0.82

9 Max consec. losers 5 Avg # bars in losers $ - 3,325.00

Profit factor 2.89 Account size required $ 3,325.00 Performance Summary: Short Trades Total net profit $ 28,987.50 Gross profit $ 53,643.75 Total # of trades Number winning trades Largest winning trade $ Average winning trade $ Ratio avg win/avg loss Max consec. winners Avg # bars in winners Max intraday drawdown Profit factor Account size required 72 42 4,806.25 1,277.23 1.55

Max # contracts held Return on account Open position P/L Gross loss Percent profitable Number losing trades Largest losing trade Average losing trade Avg trade(win & loss) 3 2

1 1144% $ 0.00 $ - 24,656.25 58% 30 $ - 1,475.00 $ - 821.88 $ 402.60

6 Max consec. losers 4 Avg # bars in losers $ - 3,325.00 2.05 $ 3,325.00 Max # contracts held Return on account

1 872%

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS M AY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACT ORS SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO S UBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REP RESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. System Concept The concept behind the entry strategy of the Serendipity System is simple and qu ite logical. Like our other bond systems, we intend to buy on dips. However, un like our other systems this system will also sell short on rallies. In order to maintain some element of non-correlation between the various long side systems, we were careful to use a different "dip" indicator from our previous bond syste ms. This long and short system is designed to trade multiple times during a trend; e ach time seeking to capture a small but significant profit in the direction of t he trend. Trading Rules The rules for Serendipity are straightforward and are as follows: To go long in the Bond market, the following conditions must be met. 1. The closing price must be above the 32 day simple moving average of clos ing prices. 2. The closing price must be below the 8 day simple moving average of closi ng prices. If these two conditions are met then buy tomorrow only if and when prices rise 2 2 ticks (22/32) above today's opening price. Since the trigger is added to toda y's opening price, the resulting buy stop order for tomorrow can be entered prio r to the opening. (The opening price referred to is the day-session opening.) The long exit rules are as follows: 1. Exit on a stop at the lowest low of the last twenty days. 2. Or exit the trade on a stop order $1,250 below the entry price if this d ollar stop is closer than the twenty day stop.

3. Take a profit at the open following any close that shows an open profit of one Average True Range or more. 4. Exit on a reversal signal to go short. To go short in the Bond market, the following conditions must be met. 1. The closing price must be below the 32 day simple moving average of clos ing prices. 2. The closing price must be above the 8 day simple moving average of closi ng prices. If these two conditions are met then sell short tomorrow only if and when prices decline 16 ticks (16/32) below today's opening price. Since the trigger is su btracted from today's opening price, the resulting sell stop order for tomorrow can be entered prior to the opening. (The opening price referred to is the day-s ession opening.) The short exit rules are as follows: 1. Exit on a stop at the highest high of the last twenty days. 2. Or exit on a stop order $1,250 above the entry price if this dollar stop is closer than the twenty day stop. 3. If the trade is profitable on a closing basis within the first two days we will trail a temporary stop at yesterday's high. After three closes this sto p is removed. 4. Take a profit at the open following any close that shows an open profit of one Average True Range or more. 5. Exit on a reversal signal to go long. Entry Logic The entry logic typifies what we believe to be valid trading concepts. The setup for a long trade requires a simple trend direction indicator followed by a pric e decline. The trade is then entered on a short term entry technique requiring a volatility breakout above the opening price of the setup bar. The short trades are just the reverse. Trend indication is critical to trading success in most markets. As a general ru le, you do not want to enter a trade from the long side unless the trend is up, and you should not sell short unless you have confirmed that the trend is down. The closing price relative to the 32 day simple moving average is used to defin e the direction of the trend and our trades. (This is an optimized moving avera ge that we expect to be reasonably robust. Our research shows that any moving av erage between 20 and 50 will produce satisfactory results.) If the close is abo ve the MA the trend is up and we want to go long on a dip. If the close is belo w the MA the trend is down and we want to go short on a rally. A dip is defined by requiring the price to close below the eight day MA. A rally is defined by requiring the price to close above the eight day MA. (The range of satisfactory results on this moving average is 7 to 14. Shorter lengths tend to give more tr ades while longer lengths tend to have a better winning percentage. It should b e noted that a nine day MA produces a higher profit factor and a smaller drawdow n with only slightly less profit. We selected eight because it has more trades and more total profit.) Exit Logic When we began construction of this system we knew that we wanted it to work well on the short side. We were also very aware that our test data had a very stron g upward bias. This meant that there would be little to be gained by holding on to the short trades for a long time in an effort to let the profits run. In acc ordance with our intention to exit the trade quickly at a short-term profit, we

have chosen a profit target of only one Average True Range. Since we plan to ent er our short trades on a rally we will exit and take our modest profits on a dip . The concept of a modest profit target is one of the keys to the system's ability to achieve such high profitability while frequently going short in a period of long term rising prices. We knew from the beginning that if we tried to hold out for large profits on the short side we wouldn't succeed. We are obviously using our hindsight and knowledge of the data in selecting this exit strategy. This doesn't mean that the one ATR exit is a bad exit or one that won't work in the f uture. On a worst case basis if we encounter a strongly declining market we wil l simply be taking our profits too soon and complaining all the way to the bank. A more dangerous use of our hindsight might have been to try and go for larger profits on the long trades relying on the known data bias to make it work. We left the exits symmetrical so that the profit target is the same on the long and short trades. Its very interesting to compare the average winning trade on the long side with the average winning trade on the short side. The short trades a re larger. Its also interesting to compare the difference in time required to m ake one ATR of profit in the long and short trades. The short trades are quicker to reach our profit objective. These results confirm our frequent observation that short trades generally move faster and with bigger ranges than long trades. If a short trade has a profitable close within the first two days, we try not to let it turn into a big loser so we put in a stop at the high of yesterday. T his temporary stop should prevent a short trade that starts out in our favor fro m turning into a big loser. Assuming that the profit target is not reached, we have two alternative exits. T he first is a $1,250 money management stop. This stop is added for protection ag ainst major losses if the trade goes against us right away. We also wanted a way to exit the trade with a smaller loss or even a small profit if the trade start s moving against us so we installed the 20-day channel exit. This exit is seldom needed and has very little effect on the historical results. Since it doesn't h urt and reduces the size of the average loss slightly, we elected to leave it in . Weaknesses The Serendipity System is designed to exit at a quick profit target and does not let profits run. This is because the system was designed to have a high winnin g percentage on the short side trades. In a strong trending market we may wish t hat it held trades longer. However we should remember that this system was inte nded to be used in conjunction with other bond systems that do hold winning trad es much longer. Conclusion When we first offered our long only bond systems we were constantly questioned a bout trading the short side of the bonds. Because of the strong upward bias in the bond data the short side performance of the longer term systems was mediocre . To avoid losing money in a sustained downtrend these long only systems are des igned to switch off and cease trading. However, there is potential profit on the short side and we wanted to capture whatever we could. We have spent more than six months of research trying to develop a solid system that would make money on the short side in spite of the strong historical data bias. We believe the Ser endipity Bond System is capable of making consistent profits in either direction with a high percentage of winning trades. We think it is a very worthwhile addi tion to our bundle of well designed bond systems.

Easy Language Code for TradeStation {Serendipity Bond System v. 1.1 1999 by Chuck LeBeau and David Elden} Condition1= Condition2= Condition3= Condition4= c> c< c< c> average(c,32); average(c,8); average(c,32); average(c,8);

if MarketPosition<>1 and Condition1 and Condition2 then buy open + 22 points s top; If MarketPosition= 1 then begin ExitLong("Long Exit") Lowest(L,20) Stop; If c> EntryPrice + 1 * AvgTrueRange(45) then Exitlong("Long Profit") open; End; if MarketPosition<>-1 and Condition3 and Condition4 then sell open - 16 points stop; If MarketPosition= -1 then begin ExitShort ("Short Exit") Highest(H,20) Stop; If BarsSinceEntry < 2 and c < EntryPrice then ExitShort ("Tight Channel") highest(H,1) stop; If c< EntryPrice - 1 * AvgTrueRange(45) then ExitShort ("Short Profit") open; End; {Maxbarsback 50, moneymanagement stop $1250.00} Paint Bar Studies In order to implement the entry on the correct day and at the correct price it w ill be helpful to create Paint Bars that alert you to the need to place entry or ders for the following day. Be sure to make the buy and sell paint bars differe nt colors. Here is the code for creating the optional paint bars: Serendipity Buy Paint Bar Code IF c> average(c,32) and c< average(c,8) Then Begin Plot1(high,"PBhigh"); Plot2(low,"PBlow"); IF CheckAlert Then Alert = TRUE; End; Serendipity Sell Paint Bar Code IF c< average(c,32) and c> average(c,8) Then Begin Plot1(high,"PBHigh"); Plot2(low,"PBLow"); IF CheckAlert Then Alert = TRUE; End;

INSTRUCTIONS FOR "TRANSFER IN" TO TRADESTATION (From TradeStation 4.0 Help File) When you receive a disk or CD that contains an indicator, a ShowMe or PaintBar s tudy, a trading system, or a function in ELA file format, do not use the Windows Explorer, the Windows File Manager, or the DOS COPY command to copy these analy sis techniques into TradeStation. Instead, you must use TradeStation's transfer feature. To transfer an analysis technique into TradeStation from another directory, a di sk, or a CD, when it is in the ELA file format, use the following steps: 1. Use the Tools - QuickEditor menu sequence to access the QuickEditor. 2. Click the Transfer button to produce the Transfer Analysis Techniques dialog. 3. Click the Transfer analysis techniques FROM Easy Language Archive file radio button to transfer in analysis techniques. 4. Click on OK to produce the Transfer from archive file dialog. 5. In the From edit box, enter the complete path name for and the name of the Ea sy Language Archive file (.ELA) from which you want to transfer the analysis tec hniques. Enter the path name and file name using one of the following methods: a) If you have previously transferred files, TradeStation remembers where the EL A files were located and lists the ELA file names in the From drop-down list. Ch oose an ELA file from the drop-down list. b) In the From edit box, type in the drive letter, the correct path name, and th e ELA file name. For example, C:\TEMP\SYSTEMS, where C: is the drive letter, TEM P is the directory path name, and SYSTEMS is the ELA file name TradeStation is t o create. c) Click on the Browse button to access the standard Windows Open dialog, in whi ch you can choose the directory and the ELA file that contains the analysis tech niques you want to transfer in. Once you specify the file and click OK, the info rmation is placed in the From edit box. d) Click the Scan button to have TradeStation scan any drive you specify for exi sting ELA files. Any ELA files found are placed in the From drop-down list. You can then choose the ELA file that contains the analysis techniques you want to t ransfer in from the drop-down list. 6. Once you enter the information in the From edit box, click on OK to produce t he Transfer dialog. 7. Click on the radio button for the type of analysis technique you want to tran sfer into TradeStation. You may transfer in only one type of analysis technique at a time, unless you select Transfer All and transfer in all the analysis techn iques found in the ELA file. If the radio button for a particular type of analys is technique is dimmed (grayed-out), it means TradeStation did not find that typ e of analysis technique in the ELA file you specified. 8. Once you select either the specific analysis technique type or Transfer All, click on OK. a) If you selected Transfer All, TradeStation begins transferring in the analysi s techniques contained in the ELA file you specified. If an analysis technique w

ith the same name as one you are transferring in already exists in TradeStation, a warning dialog will appear indicating that the duplicate analysis technique w as not transferred. OR b) If you selected a specific type of analysis technique, the Transfer analysis technique type dialog appears. Click on as many analysis techniques as you want to transfer in; this highlights the technique. To deselect an analysis technique, click on it again. Once you have highlighted the analysis techniques you want to transfer in, click on OK. TradeStation begins transferring the analysis techniques from the ELA fi le into TradeStation. If an analysis technique with the same name as one you are transferring in already exists in TradeStation, a warning dialog will appear in dicating that the duplicate analysis technique was not transferred. 9. When TradeStation is finished transferring the analysis techniques in from th e ELA file, you are returned to the QuickEditor. Click Close to return to TradeS tation. You can now insert the analysis technique into your TradeStation chart. For info rmation on inserting the different analysis techniques into your chart window, r efer to the sections that cover indicators, ShowMe and PaintBar studies, and tra ding systems. How to work with user functions is covered in the Easy Language Us er's Manual. INSTRUCTIONS FOR LOADING SYSTEMS INTO SUPERCHARTS 4.0 (Older versions do not use the Ela format and cannot use this technique. See bel ow for versions prior to 4.0 (From SuperCharts 4.0 Help File) When you receive a disk or CD that contains an indicator, a ShowMe or PaintBar s tudy, a trading system, or a function in ELA file format, do not use the Windows Explorer, the Windows File Manager, or the DOS COPY command to copy these analy sis techniques into SuperCharts. Instead you must use SuperCharts transfer featu re. To transfer an analysis technique into SuperCharts from another directory, a dis k, or a CD, when it is in the ELA file format, use the following steps: 1. Use the Tools - QuickEditor menu sequence to access the QuickEditor. 2. Click the Transfer button to produce the Transfer Analysis Techniques dialog. 3. Click the Transfer analysis techniques FROM Easy Language Archive file radio button to transfer in analysis techniques. 4. Click on OK to produce the Transfer from archive file dialog. 5. In the From edit box, enter the complete path name for and the name of the Ea sy Language Archive file (.ELA) from which you want to transfer the analysis tec hniques. Enter the path name and file name using one of the following methods: a) If you have previously transferred files, SuperCharts remembers where the ELA files were located and lists the ELA file names in the From drop-down list. Cho ose an ELA file from the drop-down list. b) In the From edit box, type in the drive letter, the correct path name, and th e ELA file name. For example, C:\TEMP\SYSTEMS, where C: is the drive letter, TEM

P is the directory path name, and SYSTEMS is the ELA file name SuperCharts is to create. c) Click on the Browse button to access the standard Windows Open dialog, in whi ch you can choose the directory and the ELA file that contains the analysis tech niques you want to transfer in. Once you specify the file and click OK, the info rmation is placed in the From edit box. d) Click the Scan button to have SuperCharts scan any drive you specify for exis ting ELA files. Any ELA files found are placed in the From drop-down list. You c an then choose the ELA file that contains the analysis techniques you want to tr ansfer in from the drop-down list. 6. Once you enter the information in the From edit box, click on OK to produce t he Transfer dialog. 7. Click on the radio button for the type of analysis technique you want to tran sfer into SuperCharts. You may transfer in only one type of analysis technique a t a time, unless you select Transfer All and transfer in all the analysis techni ques found in the ELA file. If the radio button for a particular type of analysi s technique is dimmed (grayed-out), it means SuperCharts did not find that type of analysis technique in the ELA file you specified. 8. Once you select either the specific analysis technique type or Transfer All, click on OK. a) If you selected Transfer All, SuperCharts begins transferring in the analysis techniques contained in the ELA file you specified. If an analysis technique wi th the same name as one you are transferring in already exists in SuperCharts, a warning dialog will appear indicating that the duplicate analysis technique was not transferred. OR b) If you selected a specific type of analysis technique, the Transfer analysis technique type dialog appears. Click on as many analysis techniques as you want to transfer in; this highlights the technique. To deselect an analysis technique, click on it again. Once you h ave highlighted the analysis techniques you want to transfer in, click on OK. Su perCharts begins transferring the analysis techniques from the ELA file into Sup erCharts. If an analysis technique with the same name as one you are transferrin g in already exists in SuperCharts, a warning dialog will appear indicating that the duplicate analysis technique was not transferred. 9. When SuperCharts is finished transferring the analysis techniques in from the ELA file, you are returned to the QuickEditor. Click Close to return to SuperCh arts. You can now insert the analysis technique into your SuperCharts chart. For infor mation on inserting the different analysis techniques into your chart window, re fer to the sections that cover indicators, ShowMe and PaintBar studies, and trad ing systems. How to work with functions is covered in the Easy Language User's Manual. INSTRUCTIONS FOR IMPORTING ANALYSIS TECHNIQUES IN TRADESTATION 2000I We have supplied the code for the system in both ela, Tradestation 4.0 format an d els TradeStation 200i format. Use the els file if you are importing into Trad estation 2000i, and be sure to select all, when prompted. When importing analysis techniques, you can only import one ELA/ELS file at a ti

me. Each ELA/ELS file may contain several analysis techniques. Once you specify the file to import, the wizard enables you to select individually each analysis technique you want import from the file. If the analysis technique already exist s in your product, the analysis technique is not imported. To import an EasyLanguage Archive/Storage file: 1 Use the File - Import and Export menu sequence to open the Import and Ex port Wizard. 2 3 Click Import EasyLanguage Archive File (ELA and ELS). Click Next.

4 In the Select the location of your EasyLanguage Archive File box, enter the appropriate path and file name (e.g., C:\My Analysis Techniques\Indicators.e ls). Note If you do not know the location and/or path of your EasyLanguage Archive fi le, you can scan or browse your hard drive. For more information, see Scanning Y our Hard Drive for EasyLanguage Archive Files. 5 6 Click Next. Select the categories of analysis techniques you want to import.

Note: Click Select All to select all analysis categories. Click Clear All to cle ar all categories so that you can reselect the appropriate categories. 7 8 Click Next. Select the analysis technique(s) you want to import.

Note: Click Select All to select all analysis techniques. Click Clear All to cle ar all analysis techniques so that you can reselect the appropriate analysis tec hniques. 9 10 Click Finish. When the importing process is complete, click OK.

INSTRUCTIONS FOR INSERTING ANALYSIS TECHNIQUES Analysis techniques, which includes Indicators, ShowMe studies, PaintBar studies and trading systems, can be inserted only on an active chart window. To make a chart window active, simply click on it or use the Window menu. Once your chart window is active, you can add an analysis technique to it in any of three ways: the Menu Sequence method, the Shortcut menu method, or the Indic ator icon method. The following covers each of these three methods. Using the Menu Sequence Method Use the following directions to insert analysis techniques in your chart window using the menu sequence method: 1. Use the Insert - Analysis Techniques menu sequence to produce the Insert Anal ysis Techniques dialog, shown below. This dialog contains four tabs. Insert Analysis Techniques dialog

2. Click on the appropriate tab to produce the corresponding dialog. For example , to insert an indicator, click the Indicator tab. 3. Select one analysis technique by clicking on it, or more than one analysis te chnique by holding down the CTRL key and clicking on the analysis techniques you wish to apply. If you want to format the analysis technique (change inputs, color, style, scali ng, and other properties) before it is plotted, click in the Format checkbox to place a check mark in the box. (To remove the check mark click again.) 4. Click the Plot button. You are returned to the chart window. The analysis has been applied to the chart. If you chose to format your analysis technique before inserting it on the chart window, the Format analysis technique dialog is produced when you click the Plot button. After specifying the way you want the analysis technique to be displaye d, click the OK button to insert the analysis technique and return to the chart window. Using the Shortcut Menu Method The following covers using the Shortcut menu method to insert an analysis techni que in your chart. 1. Place the mouse pointer on any empty area of the chart window and click the r ight mouse button to produce the Shortcut menu shown below. Chart window Shortcut menu 2. Select Insert Analysis Techniques to produce the Insert Analysis Techniques d ialog. 2. Click on the appropriate tab to produce the corresponding dialog. For example , to insert an indicator, click the Indicator tab. 3. Select one analysis technique by clicking on it, or more than one analysis te chnique by holding down the CTRL key and clicking on the analysis techniques you wish to apply. If you want to format the analysis technique (change inputs, color, style, scali ng, and other properties) before it is plotted, click in the Format checkbox to place a check mark in the box. (To remove the check mark click again.) 4. Click the Plot button. You are returned to the chart window. The analysis has been applied to the chart. If you chose to format your analysis technique before inserting it on the chart window, the Format analysis technique dialog is produced when you click the Plot button. After specifying the way you want the analysis technique to be displaye d, click the OK button to insert the analysis technique and return to the chart window.

Serendipity 1.1 UA.LNG-Daily Date Cumulative 03/16/88 Time Type Sell

01/04/88 - 04/30/99 Cnts 1 Price Signal Name 66^09 Entry P/L

Sell Entry

03/17/88 .75 $ 03/18/88 03/22/88 .25 $ 04/12/88 04/15/88 .00 $ 04/28/88 05/03/88 .25 $ 05/27/88 06/01/88 .75 $ 06/22/88 06/27/88 .00 $ 07/27/88 07/29/88 .25 $ 08/08/88 08/11/88 .25 $ 08/22/88 08/23/88 .00 $ 08/25/88 08/29/88 .00 $ 09/29/88 10/03/88 .00 $ 10/14/88 10/31/88 .00 $ 12/02/88 12/06/88 .75 $ 12/20/88 12/27/88 .50 $ 01/09/89 01/16/89 .25 $ 02/22/89

SExit -443.75 Sell SExit -262.50 Sell SExit 1262.50 Sell SExit 1818.75 Sell SExit 375.00 Buy LExit 775.00 Sell SExit 518.75 Sell SExit 2200.00 Sell SExit 1725.00 Sell SExit 375.00 Buy LExit 1400.00 Buy LExit 2175.00 Sell SExit 1981.25 Buy LExit 2693.75 Buy LExit 4000.00 Sell

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

66^20 65^30 65^21 64^27 63^07 62^20 61^31 59^25 61^04 63^06 63^22 61^10 61^15 62^03 60^10 60^03 60^15 59^25 61^01 63^26 64^30 65^21 66^17 64^01 64^04 65^17 66^11 65^13 66^26 65^00

tight channe Sell Entry tight channe Sell Entry Short Profit Sell Entry Short Profit Sell Entry Money Mngmt S Long Entry Long Profit Sell Entry tight channe Sell Entry Short Profit Sell Entry tight channe Sell Entry Money Mngmt S Long Entry Long Profit Long Entry Long Profit Sell Entry tight channe Long Entry Long Profit Long Entry Long Profit Sell Entry

-443

181

1525

556

$ -1443

400

-256

1681

-475

$ -1350

1025

775

-193

712

1306

02/24/89 .00 $ 03/08/89 03/20/89 .25 $ 05/05/89 05/09/89 .00 $ 06/21/89 06/26/89 .25 $ 07/20/89 07/28/89 .75 $ 10/19/89 10/25/89 .00 $ 11/07/89 12/08/89 .50 $ 02/02/90 02/07/90 .25 $ 02/13/90 02/21/90 .00 $ 02/28/90 03/02/90 .75 $ 03/09/90

SExit 4275.00 Sell SExit 5706.25 Buy LExit 4356.25 Buy LExit 5412.50 Buy LExit 6406.25 Buy LExit 7056.25 Buy LExit 6018.75 Sell SExit 7200.00 Sell SExit 9100.00 Sell SExit 9718.75 Sell SExit Sell SExit Buy LExit Sell SExit Sell SExit Sell

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

64^20 64^23 63^06 66^18 65^10 72^08 73^13 74^03 75^06 75^11 76^03 76^11 75^13 70^23 69^14 70^27 68^27 70^04 69^13 69^02 68^04 66^27 67^07 69^01 71^02 67^22 66^11 65^16 66^24 66^05

Short Profit Sell Entry Short Profit Long Entry Money Mngmt S Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Long Exit Sell Entry Short Profit Sell Entry Short Profit Sell Entry Short Profit Sell Entry Short Profit Sell Entry tight channe Long Entry Long Profit Sell Entry Short Profit Sell Entry Money Mngmt S Sell Entry

275

1431

$ -1350

1056

993

650

$ -1037

1181

1900

618

03/14/90 .50 $ 10556.25 05/09/90 05/10/90 .00 $ 10081.25 05/22/90 06/04/90 .25 $ 12012.50 08/16/90 08/17/90 .75 $ 13256.25 09/04/90 09/07/90 .00 $ 11906.25 09/11/90

837

-475

1931

1243

$ -1350

09/24/90 .75 $ 13400.00 10/15/90 10/19/90 .25 $ 14956.25 10/31/90 11/02/90 .00 $ 15856.25 11/09/90 11/13/90 .75 $ 16725.00 11/30/90 12/06/90 .50 $ 17812.50 12/18/90 12/24/90 .00 $ 16337.50 12/27/90 01/03/91 .75 $ 17456.25 03/15/91 03/19/91 .50 $ 18168.75 04/12/91 04/16/91 .00 $ 18943.75 04/24/91 05/03/91 .25 $ 19875.00 05/23/91 06/06/91 .50 $ 20462.50 07/02/91 07/10/91 .75 $ 21081.25 07/24/91 08/01/91 .00 $ 21731.25 08/28/91 08/30/91 .00 $ 22256.25 02/07/92 02/14/92 .00 $ 23781.25 03/03/92

SExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Sell SExit Buy LExit Buy LExit Sell SExit Sell SExit Buy LExit Buy LExit Sell SExit Sell

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

64^18 66^28 68^17 68^11 69^11 69^25 70^24 72^05 73^11 74^09 72^29 73^13 74^20 73^13 72^19 74^04 75^00 74^07 75^08 73^15 72^25 72^08 71^17 73^04 73^28 76^25 77^13 81^23 80^03 80^31

Short Profit Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Money Mngmt S Long Entry Long Profit Sell Entry Short Profit Long Entry Long Profit Long Entry Long Profit Sell Entry Short Profit Sell Entry Short Profit Long Entry Long Profit Long Entry Long Profit Sell Entry Short Profit Sell Entry

1493

1556

900

868

1087

$ -1475

1118

712

775

931

587

618

650

525

1525

03/04/92 .00 $ 23681.25 03/11/92 03/13/92 .25 $ 24862.50 03/20/92 03/24/92 .00 $ 23512.50 03/27/92 04/01/92 .00 $ 22162.50 05/29/92 06/19/92 .00 $ 22687.50 07/15/92 07/24/92 .25 $ 23868.75 08/27/92 09/03/92 .00 $ 24518.75 10/16/92 10/21/92 .75 $ 25762.50 11/02/92 11/03/92 .00 $ 25662.50 12/04/92 12/08/92 .25 $ 26718.75 01/04/93 01/07/93 .00 $ 25368.75 01/14/93 01/18/93 .75 $ 26237.50 03/17/93 03/24/93 .00 $ 26762.50 04/30/93 05/05/93 .25 $ 27693.75 05/28/93 06/01/93 .75 $ 27000.00 07/29/93

SExit Sell SExit Sell SExit Sell SExit Buy LExit Buy LExit Buy LExit Sell SExit Sell SExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Sell SExit Buy

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

80^31 80^20 79^11 79^12 80^20 80^02 81^10 82^17 83^05 85^14 86^23 88^00 88^24 87^25 86^14 86^22 86^22 88^02 89^07 90^21 89^13 89^19 90^18 96^11 96^31 97^19 98^20 97^07 97^26 102^07

tight channe Sell Entry Short Profit Sell Entry Money Mngmt S Sell Entry Money Mngmt S Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Sell Entry Short Profit Sell Entry tight channe Long Entry Long Profit Long Entry Money Mngmt S Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Sell Entry tight channe Long Entry

-100

1181

$ -1350

$ -1350

525

1181

650

1243

-100

1056

$ -1350

868

525

931

-693

07/30/93 .75 $ 27868.75 08/09/93 08/23/93 .75 $ 29112.50 09/23/93 09/28/93 .50 $ 30700.00 11/18/93 11/22/93 .50 $ 32787.50 11/30/93 12/01/93 .25 $ 32656.25 12/03/93 12/06/93 .25 $ 31275.00 02/04/94 02/04/94 .00 $ 29925.00 03/18/94 03/22/94 .50 $ 30512.50 03/24/94 03/30/94 .50 $ 31975.00 04/08/94 04/13/94 .00 $ 30625.00 04/14/94 04/19/94 .25 $ 32431.25 06/14/94 06/15/94 .00 $ 31081.25 07/21/94 07/29/94 .00 $ 29731.25 08/15/94 08/17/94 .50 $ 31193.75 09/16/94 09/28/94 .50 $ 31906.25 10/19/94

LExit Buy LExit Buy LExit Sell SExit Sell SExit Sell SExit Buy LExit Sell SExit Sell SExit Sell SExit Sell SExit Buy LExit Sell SExit Buy LExit Sell SExit Sell

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

103^06 103^26 105^05 107^09 108^31 105^26 103^20 104^28 104^29 104^14 105^23 107^06 105^30 100^18 99^28 99^27 98^09 95^31 97^07 96^06 94^09 97^00 95^24 94^22 95^30 94^29 96^15 92^27 92^01 91^22

Long Profit Long Entry Long Profit Long Entry Long Profit Sell Entry Short Profit Sell Entry tight channe Sell Entry Money Mngmt S Long Entry Money Mngmt S Sell Entry tight channe Sell Entry Short Profit Sell Entry Money Mngmt S Sell Entry Short Profit Long Entry Money Mngmt S Sell Entry Short Exit Long Entry Long Profit Sell Entry Short Profit Sell Entry

868

1243

1587

2087

-131

$ -1381

$ -1350

587

1462

$ -1350

1806

$ -1350

$ -1350

1462

712

10/21/94 .75 $ 32775.00 11/01/94 11/04/94 .00 $ 33550.00 11/10/94 11/14/94 .00 $ 33575.00 11/17/94 11/21/94 .50 $ 33662.50 01/26/95 01/30/95 .75 $ 35031.25 02/14/95 02/23/95 .75 $ 36025.00 03/08/95 03/13/95 .00 $ 36800.00 03/24/95 03/28/95 .25 $ 37481.25 04/03/95 04/24/95 .75 $ 38100.00 06/13/95 06/14/95 .75 $ 38843.75 06/19/95 06/23/95 .00 $ 40868.75 06/28/95 06/29/95 .00 $ 39518.75 07/06/95 07/07/95 .75 $ 40637.50 07/28/95 08/14/95 .50 $ 42100.00 08/23/95 08/24/95 .50 $ 41687.50 09/29/95

SExit Sell SExit Sell SExit Sell SExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Sell SExit Sell SExit Buy

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

90^23 90^23 89^27 89^22 89^18 90^05 89^31 93^06 94^21 95^27 96^30 96^16 97^12 98^03 98^28 98^15 99^06 107^27 108^22 108^11 110^15 109^17 108^09 108^31 110^06 105^02 103^16 104^15 104^25 108^21

Short Profit Sell Entry Short Profit Sell Entry tight channe Sell Entry tight channe Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Money Mngmt S Long Entry Long Profit Sell Entry Short Profit Sell Entry tight channe Long Entry

868

775

25

87

1368

993

775

681

618

743

2025

$ -1350

1118

1462

-412

10/04/95 .00 $ 42712.50 10/24/95 10/27/95 .00 $ 41362.50 10/30/95 11/03/95 .50 $ 42575.00 11/14/95 12/01/95 .25 $ 44006.25 12/20/95 12/28/95 .00 $ 45031.25 01/09/96 01/10/96 .00 $ 43681.25 01/29/96 02/05/96 .00 $ 42331.25 02/15/96 02/20/96 .00 $ 44731.25 03/06/96 03/11/96 .25 $ 49537.50 03/27/96 03/29/96 .25 $ 50468.75 04/04/96 04/08/96 .50 $ 53056.25 04/17/96 05/03/96 .50 $ 55768.75 07/12/96 07/19/96 .75 $ 57012.50 07/31/96 08/02/96 .25 $ 59068.75 09/17/96 09/19/96 .25 $ 58937.50 10/15/96

LExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Buy LExit Sell SExit Sell SExit Sell SExit Sell SExit Sell SExit Buy LExit Buy LExit Sell SExit Buy

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

109^25 111^30 110^22 111^28 113^06 113^00 114^17 114^29 116^01 116^04 114^28 115^23 114^15 115^04 112^20 110^24 105^27 107^31 106^30 107^09 104^19 105^17 102^23 104^09 105^20 104^26 106^31 104^31 105^00 107^18

Long Profit Long Entry Money Mngmt S Long Entry Long Profit Long Entry Long Profit Long Entry Long Profit Long Entry Money Mngmt S Long Entry Money Mngmt S Sell Entry Short Profit Sell Entry Short Profit Sell Entry Short Profit Sell Entry Short Profit Sell Entry Short Profit Long Entry Long Profit Long Entry Long Profit Sell Entry tight channe Long Entry

1025

$ -1350

1212

1431

1025

$ -1350

$ -1350

2400

4806

931

2587

2712

1243

2056

-131

10/30/96 .00 $ 60837.50 11/29/96 12/05/96 .00 $ 59487.50 12/09/96 12/11/96 .00 $ 58137.50 12/31/96 01/02/97 .25 $ 58943.75 01/16/97 01/21/97 .25 $ 58687.50 01/23/97 01/28/97 .75 $ 59681.25 03/11/97 03/14/97 .25 $ 60612.50 04/22/97 04/29/97 .50 $ 59825.00 07/02/97 07/07/97 .75 $ 61068.75 07/22/97 07/24/97 .75 $ 61562.50 08/07/97 08/08/97 .75 $ 60118.75 08/21/97 08/25/97 .50 $ 61206.25 09/02/97 09/16/97 .00 $ 59856.25 10/01/97 10/08/97 .50 $ 60943.75 10/23/97 10/28/97 .00 $ 62968.75 11/06/97

LExit Buy LExit Buy LExit Sell SExit Sell SExit Sell SExit Sell SExit Sell SExit Buy LExit Buy LExit Buy LExit Sell SExit Sell SExit Buy LExit Buy LExit Buy

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

109^18 113^04 111^28 111^17 110^09 110^23 109^26 108^07 108^12 108^05 107^02 107^14 106^13 105^07 105^29 109^30 111^09 112^23 113^10 113^06 111^27 111^25 110^19 110^31 112^07 114^28 116^02 114^27 116^31 116^09

Long Profit Long Entry Money Mngmt S Long Entry Money Mngmt S Sell Entry Short Profit Sell Entry tight channe Sell Entry Short Profit Sell Entry Short Profit Sell Entry Short Exit Long Entry Long Profit Long Entry Long Profit Long Entry Money Mngmt S Sell Entry Short Profit Sell Entry Money Mngmt S Long Entry Long Profit Long Entry Long Profit Long Entry

1900

$ -1350

$ -1350

806

-256

993

931

-787

1243

493

$ -1443

1087

$ -1350

1087

2025

11/20/97 .75 $ 64087.50 12/11/97 12/15/97 .50 $ 65425.00 01/02/98 01/06/98 .00 $ 67450.00 02/05/98 02/12/98 .00 $ 66100.00 02/20/98 02/25/98 .00 $ 67125.00 05/08/98 05/12/98 .25 $ 66868.75 06/19/98 07/06/98 .75 $ 67737.50 09/09/98 09/11/98 .75 $ 69356.25 10/15/98 10/15/98 .00 $ 68006.25 11/02/98 11/05/98 .25 $ 69687.50 11/16/98 11/17/98 .75 $ 69243.75 11/23/98 11/30/98 .00 $ 67768.75 12/31/98 01/11/99 .25 $ 70325.00 01/19/99 01/21/99 .00 $ 69975.00 01/27/99 02/03/99 .00 $ 71625.00 03/09/99

LExit Buy LExit Buy LExit Sell SExit Sell SExit Sell SExit Buy LExit Buy LExit Buy LExit Sell SExit Sell SExit Sell SExit Sell SExit Sell SExit Sell SExit Sell

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

117^16 117^20 119^02 119^12 121^16 119^19 120^27 120^03 118^31 118^18 118^23 122^04 123^03 126^23 128^14 128^23 127^15 127^30 126^05 126^21 127^00 126^24 128^04 126^22 124^01 125^26 126^02 126^22 124^30 119^30

Long Profit Long Entry Long Profit Long Entry Long Profit Sell Entry Money Mngmt S Sell Entry Short Profit Sell Entry tight channe Long Entry Long Profit Long Entry Long Profit Long Entry Money Mngmt S Sell Entry Short Profit Sell Entry tight channe Sell Entry Money Mngmt S Sell Entry Short Profit Sell Entry tight channe Sell Entry Short Profit Sell Entry

1118

1337

2025

$ -1350

1025

-256

868

1618

$ -1350

1681

-443

$ -1475

2556

-350

1650

03/09/99 .00 $ 70275.00 03/11/99 03/15/99 .00 $ 68925.00 03/18/99 03/26/99 .25 $ 69731.25 03/31/99 04/02/99 .00 $ 68381.25 04/20/99 04/26/99 .00 $ 67031.25

SExit Sell SExit Sell SExit Sell SExit Buy LExit

1 1 1 1 1 1 1 1 1

121^06 120^20 121^28 121^24 120^27 119^25 121^01 121^30 120^22

Money Mngmt S Sell Entry Money Mngmt S Sell Entry Short Profit Sell Entry Money Mngmt S Long Entry Money Mngmt S

$ -1350

$ -1350

806

$ -1350

$ -1350

To view an equity chart based on the above trades go to: http://traderclub.com/systems_serendipity.htm PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS M AY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACT ORS SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO S UBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REP RESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. ******************************************************************************** ******* For further information, new systems, traders forum, bulletins, and more be sure to visit the Traders Club Web site: http://www.traderclub.com Come back often as we are growing rapidly and adding new features all the time. Other questions can be answered by sending email to: mailto:support@traderclub.com Good luck and Good trading. Chuck