Track Record

History

Each account manager has posted his results over the last couple of years. These results are not compounded. They are the actual results of the trading for each manager, compiled on a monthly basis. All results are calculated after the performance fees and commissions. As mentioned in the disclaimer below, while Best FX Funds must rely on third party information, we have performed due diligence to verify this information to the best of our ability.

Looking at the track record of a trader is like looking at a resume. When one hires professionals, looking at their past performance gives information about their quality, skill and risk levels. When putting together our team, we look for consistency of performance. We also look at the risk levels and methodology employed to prevent large losses. While past performance is no guarantee of future performance, evaluating their past performance still is one of the best methods to determine how good they are.

Each trader that passes our criteria is added to the team on a conditional basis. They are then tested with live trading accounts. After passing this test period, usually three months, they succeed in joining the team. However, their performance is under constant supervision and their track record is continually updated. If they under perform, show signs of excessive leverage or other red flags, they are deleted from our approved list.

Criteria

1) Protection - Our biggest concerned is protecting clients from large losses. We look to see that the trader uses a stop loss for all trades. Also, that the stop loss placement is such that the maximum loss will be relatively small. Having a stop loss placement far away does not do us much good. Also, we look at the leverage and risk used. Is the size of the trade is within reasonable limits. Having too many lots on increases the leverage. We prefer to see smaller trades. When a trader tries to get larger profits from a few trades, this increases the risk. Large gains often mean large potential risk.

2) Maximum Draw down - Ideally, we want to see no more than 20% maximum draw down from peak to valley, including open trade positions. Some traders hold open trades through large negative positions and only close them out when the trade becomes profitable. We want to eliminte this type of trader. This does not show up on statements as statements only show closed positions. This is one reason we need to have a live account to really know what a trader is doing.

3) Performance - We look to see that our results match what the trader says he is making. Often, we are not able to get full statements. Does the trader's current claim of performance match what we are getting? Do we have confidence to believe the past results that are given. We want to see at least 1-2 years past performance.

4) Trust - Can we trust the trader? We interview the trader and ask a lot of questions in order to gage some level of trust. If there is a suspicion of lack of integrity, we will not use him.

5) Flexibility - Will the trader work with us? Traders are an interesting breed. Many are set in their ways. If we make a request that clients to be treated in a certain way, will he work with us to customize his system. For example, can we lower the risk?

6) Broker - Does he work through a reputable broker? We look to have protection of the client funds. We use brokers that are registered and approved by the CFTC, NFA or FSA. We use a limited power of attorney to place trades.

7) History - What is his track record? How many clients does he have? How much money does he manage. We do not want to use someone that has a great track record trading their own funds but has never traded other people's funds. They may turn into a good money manager, but we want to see experience.

8) Consistency - Is the trader's performance consistent or sporadic. Many traders can have a good month or two. We look at the pattern of his performance for clues.

9) Maturity - How old is the trader? How many years experience does he have. We like to see 8+ years of trading experience.

Funds

Sapphire Strategy

The Sapphire Program has three risk levels: Aggressive, Moderate & Conservative. It is a custom designed software generated trading program to minimize the drawdown while maximizing the profit performance.

During the last month, market conditions for many currency pairs have been ranging in a sideways channel. We have modified the Sapphire Strategy to improve its performance for this type of market. In addition, the Sapphire program will continue to utilize strategies that have performed well for trending markets. The aggressive strategy has made an average of +12.9% per month over the last 33 months.

Sapphire Trading Program
Strategy	Monthly Average	Total Return	Maximum Drawdown
Aggressive	+12.9%	439%	-24.0%

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Ruby Program

The Ruby Program is an Aggressive strategy designed to maximize profits for today's market. It is a custom designed software generated trading program to minimize the drawdown while maximizing the profit performance. Compaired to the Sapphire program, the Ruby is more geared for the ranging type of markets we are experiencing in our recent markets. The Ruby aggressive strategy has averaged 13.7% per month over the last 21 months. The maximum drawdown over the last year has been -20.3%. The Ruby Program is closed to new investors.

Ruby Trading Program
Strategy	Monthly Average	Total Return	Maximum Drawdown
Aggressive	+13.7%	+287%	-20.3%
Moderate	+6.9%	+144%	-10.2%
Conservative	+3.6%	+72.7%	-5.1%

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Emerald Pool

The Emerald Pool Fund is a combination of several managed fund accounts. The purpose is to diversify the investment by spreading the risk over several different account managers. Our experience in doing this has proven that the downside risk is reduced.

The combined results that would have been achieved over the last 3 years would average 7.9% per month. These are net results are after all commissions and fees. Currently, the strategy utilized to create this fund combines the Platinum, Topaz, Diamond, Ruby and Basket fund results. This is a closed fund and is not available to new investors at this time.