Gloranis Praesentation Gross Word 97 En (1)

Systematic Currency-Trading

The most fascinating aspects of the
foreign exchange market are its
liquidity, around-the-clock trading,
zero transaction costs and the
intelligent diversification of a
portfolio.

Page 1 || Gloranis GmbH || Forchstrasse 282 || CH-8008 Zürich || www.gloranis.ch || Thinking and trading from a new perspective


Contents

Gloranis 3

Currency market 4

Advantages 7

Investment approach 8

Gloria the currency robot 10

Risk management 12

Investment objective 14

Track record 15



Gloranis

Gloranis GmbH is an independent investment advisor based in Zurich, specialising exclusively The result is impressive: this unique innovative
in currency investments
investments. investment style regularly generates substantial
risk adjusted
ris k- adjusted returns and additionally provides
The many years' experience and passion of both founding partners for trading, combined with an efficient form of diversification for
clients' need for stable positive returns ( pure alpha) , were the main motivation for
lpha) conventional asset classes such as equities and
developing the profitable trading strategy called Gloria. bonds.
While respectfully and knowingly acknowledging the unpredictability of the markets and their
returns, a fully automatic currency robot was developed. Now, for the first time, it is also
automatic
available to private investors.



Currency market / forex

Forex is short for foreign exchange and refers to the global market on which currencies are
traded. The daily trading volume of USD 4 trillion makes forex the world's largest market,
market,
while ensuring liquid and fair trading.



Low risk

Currencies are the least volatile asset class compared to equities and bonds. It is a widespread
misunderstanding that foreign exchange is riskier than traditional asset classes.

Equities - VIX Index:
Chicago Board of Options Exchange Volatility Index

Fixed Income USSV055 Index:
USD Swaption 5 Year Fixed/Floating Volatility Index

Currencies - CVIX Index:
Deutsche Bank FX Volatility Index



Correlation

Foreign exchange has little in common with the other asset classes (low correlation). While
the correlation between common asset classes has risen steadily in the past, leading to
increasing risks for investors, currencies have retained their independence. For this reason,
currency investments are a valuable method of diversifying a portfolio and reducing risk.

Currency:
Deutsche Bank Currency Returns (DBCR) Index

Fixed Income:
JP Morgan U.S. Aggregate Bond Index

Commodities:
Deutsche Bank Liquid Commodities (DBLCI) Index

Real Estate:
NAREIT Index

Equities:
S&P 500 Index



Advantages

There are other advantages as well:

Advantages FX market Equity market
24-hour market Yes No
Commission-free trading Yes No
A currency cannot become bankrupt Yes No
Short strategies possible Yes No
Fair prices through a high degree of liquidity Yes No
Market manipulation not possible Yes No

For the reasons indicated above, the foreign exchange market is ideally suited to the use of a
fully automatic trading system (algorithmic trading).



Investment approach / systematic

The investment strategy of Gloranis GmbH is purely systematic. It is based on the conviction
that better results can be obtained over the long term through a purely systematic trading
approach – detached from feelings and emotions
emotions.

In a systematic or algorithmic investment approach, the buy or sell signals are generated
automatically by a computer program and executed in a matter of seconds.

The major advantages of a systematic approach are seen as two-fold: it dis ciplin es investors
disciplines
and keeps them from being guided by feelings such as fear, greed or overestimation of their
own abilities.

The human brain is not designed for systematic behaviour. Rational decisions are often
contrary to intuition and prevent logical courses of action.



Systematic trading

> Information that is not in accord with the decision that was taken is ignored or The main advantage of an automated trading
underweighted (selective perception). emotion.
model is the absence of emotion
> Realisation of losses is delayed since on-paper losses are viewed as a cost of the decision,
while reversing the decision is equivalent to a pointless expense. This prevents investors
from liquidating a position quickly and re-investing profitably.
> Asymmetrical assessment of gains and losses leads to premature realisation of gains and a
situation in which losses are realised too late.



Gloria

The Gloria robot was developed in-house at
Gloranis GmbH, and is the result of many years'
trading experience combined with the latest
trading technologies.

Gloria is a swing- trading program It identifies
swing- rogram.
and uses distinct price movements based on the
mean-reversion effect, taking volatility into
account.

For 24 hours a day, 5 days a week, Gloria
monitors the candlestick charts of 12 currency
pairs at present. When it finds promising
opportunities it implements them as buy and sell
orders in a matter of seconds, using a unique
lgorithm.
algorithm



Gloria / swing-reversal trading

A position is only taken once a minimum price
target and the associated exit point have been
defined in advance. All the investments are
transparent and therefore easy to follow They
follow.
also form the basis for systematic risk
management.

Application of all the parameters in the robot is
subordinate to risk minimisation and is
accordingly weighted disproportionately. This is
because the objective is not to generate a return
that is as high as possible, but a return that is as
stable as possible.

Gloria provides our investors with an investment
approach that is positively set apart from other
traditional forms of investment. It is not a
comparison with the benchmark that counts, but
the results.



Risk management

Successful investing requires effective risk management In order to trade systematically, an
effective management. The normal stop-l oss aims to close a position
stop-
investor must have precise knowledge of the expected values applicable to his trading system when a pre-defined rate is reached, in order to
in order that they can subsequently be parameterised in the robot. limit losses.

To ensure that this is done as effectively as possible, several levels of risk management The trailing s top-l oss aims to safeguard gains. It
trailing top-
elements are applied. These are predefined as fixed values for each currency pair and moves in the same direction as a favourable rate
integrated directly in the algorithm: movement and is constantly adjusted.

Each currency pair traded in our currency portfolio is given a candle-s top developed in-
candle- in- The take-profit order closes a position when a
take-
house.
house pre-defined profit threshold is reached.

If the rate becomes highly unfavourable (e.g. intervention by a central bank) and when the The candle s top- loss limits the loss of a position
candle top-
candle-stop is reached, the open position is immediately closed and trading in this currency directly in the relevant candle of the currency
pair is suspended for the time being. Unlike the conventional stop-loss, the candle-stop takes pair.
effect directly in the relevant candle, i.e. much earlier, thus preventing greater losses (see
following chart).



Risk management / candle-stop

The candle-stops that are used are different from
one currency pair to the other and are set
differently (differing volatilities).

The exact definition of the parameters is the key
to successful position management in order to
obtain risk-adjusted returns.

In addition, all the parameters are used to
prepare an exact risk/return profile at the
currency pair level. The purpose is to enable the
algorithm and its trading pattern to be checked at
any time.



Investment objective

The primary aim of Gloranis is capital preservation and long- term capital growth
and long- capital growth.

targeted
The targeted return is 15% p.a.

typical leverage
The typical l everage is 0.5 - 1.5 x



Track record

Gold in SXI Real
Gloranis in comparison Gloranis S&P 500
CHF Estate

Return last 1 month 1.78% 3.87% -7.93% 1.10%

Annualised return 32.01% -8.28% 11.64% 8.34%
Annualised volatility 7.52% 20.7% 22.17% 7.29%
Annual Sharpe ratio 3.86 -0.54 0.39 0.74%

% positive month 94% 52% 63% 65%
Maximum consecutive gain 155.62% 20.42% 26.47% 9.74%
Maximum consecutive loss -5.02% -39.5% -14.23% -9.14%
Best month 10.82% 9.83% 18.68% 3.98%
Worst month -5.02% -14.05% -14.23% -9.14%

Performance in back-testing / Dummy account Since inception: 303.68%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2008 2.19% 4.03% 2.78% 2.77% 1.52% 1.59% 2.65% 1.96% 2.20% 3.94% 0.90% 4.48% 35.73%

2009 1.32% 1.96% 4.88% 2.66% 1.39% 3.15% 1.88% 1.56% 3.58% 2.64% 2.86% 3.69% 39.16%

2010 0.98% 2.22% 2.22% 3.91% 1.58% - 2.28% 2.02% 3.37% 1.01% 1.87% 2.37% 26.54%

2011 0.87% 2.39% 5.58% -5.02% 4.15% 1.62% 2.52% 10.82% -3.70% 2.90% 3.14% 1.78% 29.55%

2012



Thank you very much

You are responsible not only for what you do,

but also for what you do not do.

So trade against the trend, systematically and successfully,

with

DISCLAIMER: The information presented above is intended for information purposes only and does not constitute an offer or preparation or solicitation of an offer to buy or sell an investment or financial instrument. This information must likewise not be construed as an invitation or offer to participate in a trading strategy. In
relation to the performance data used in this document, every reader must know and understand that past performance is no guarantee of future results. Trading on the foreign exchange market bears a high level of risk and may not be suitable for all investors. It is possible that you could suffer a loss, which could include part or
all of your deposit. For this reason you should only invest risk capital such that your personal financial circumstances would not be adversely affected in any way. These publications do not constitute an invitation to trade on financial markets. You should carefully consider your financial circumstances and make an appropriate
decision in view of your financial situation before you make an investment. Although the information presented above is based on sources that could be considered credible, Gloranis GmbH has not taken any steps to verify that this information, or parts thereof, is accurate, correct or complete. Neither Gloranis GmbH or any of its
affiliated or subsidiary companies, nor any partners, employees, managers, members of management, directors or representatives make any representations or assurances whatsoever, either expressly or implied, and none of these parties shall be liable for any losses, damage, costs or expenses of whatever nature and form, in
connection with the adequacy, accuracy, due care, correctness or completeness of the information (or parts thereof) in this document or from the use of the reproduced information. Neither Gloranis GmbH nor its employees or managers are under any obligation to update, add to or improve the information in this document. The
information is indicative only and may be changed without notice. This document has not been reviewed by any higher-level supervisory authority.


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