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Colby Algorithmic Trading System – Volatility/Opportunity (CATS-VO)
Investment Objective:
The Colby Algorithmic Trading System – Volatility/Opportunity (CATS-VO) seeks profits from speculative algorithmic trading systems.

Principal Investment Strategies:
The goal of CATS-VO is to achieve high absolute returns. CATS-VO is not designed to track the general stock market, and CATS-VO is not correlated to the broad stock market indexes. Risk may be substantially higher than the S&P 500. CATS-VO was designed to capitalize on stock-market volatility trends, which can be highly variable at times, resulting in large variations in account equity. There can be no assurance that future market behavior will resemble historical market behavior on which the CATS-VO algorithm was developed. CATS-VO was designed to be maximally flexible, require buying long and selling short in a margin account. CATS-VO and margin accounts are not available for retirement accounts.

Portfolio:
Long-term holdings: CATS-VO will usually hold a longer-term long or short position in Exchange Traded Funds (ETFs) that track the performance of the S&P 500. CATS-VO is currently trading a non-leveraged ETF, ticker symbol ‘SPY’ - SPDR® S&P 500® ETF (https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-trust-spy ).

Medium-term holdings: CATS-VO will usually hold a medium-term long or short position in Leveraged Exchange Traded Funds (ETFs) that track the performance of the S&P 500 in a bullish state, or will sell these ETFs short in a bearish state. CATS-VO is currently trading ticker symbol ‘UPRO’ - ProShares UltraPro S&P500 (https://www.proshares.com/funds/upro.html.) The S&P 500 has a tendency to trend upward over the long-term, so our algorithm buys long more often than it sells short in order to profit from this tendency.

Short-term holdings: CATS-VO will also trade Leveraged ETFs that track VIX Futures, long or short, based on Colby’s proprietary algorithm. CATS-VO is currently trading ticker symbol ‘UVXY’ - ProShares Ultra VIX Short-Term Futures ETF (https://www.proshares.com/funds/uvxy.html.) During each trade, profits may be taken at pre-determined levels to lock in gains and to attempt to lower volatility. VIX Futures have a tendency to trend downward over time, so our algorithm sells short more often than it buys long in order to profit from this tendency.

Performance:
Performance for CATS-VO will be updated monthly at https://www.colbyassetmanagement.com/performance.html . Additionally, detailed performance charts and risk metrics can be found on the CATS-VO data sheet here: www.colbyassetmanagement.com/PDF/CATS-VO.pdf . All of our published performance data for CATS-VO include all accounts that are fully funded in the program, and are net of all management fees, trading commissions, margin loan payments, and any other fees assessed by Interactive Brokers.

                               

                               

Fees and Expenses of CATS-VO:
Robert W. Colby Asset Management, Inc. (Colby) charges CATS-VO accounts a fixed investment management fee based on the value of assets in the account: 2.0% per year (assessed quarterly at 0.5% per quarter) for margin accounts held at our recommended custodian, Interactive Brokers. Trading commissions, margin loan fees, and other fees are as specified on the Interactive Brokers website. All fees are included in our performance numbers.

Management:
Investment Adviser:
Robert W. Colby, CMT, serves as investment adviser to CATS-VO.

Portfolio Manager:
William K. Anderson is responsible for the day-to-day management of CATS-VO and has been the portfolio manager of CATS-VO since its inception in August, 2020.

Account Requirements:
Margin account at Interactive Brokers (No IRA Accounts).
Account must have extended hours trading.
Account must be accessible to Robert W. Colby Asset Management, Inc. for trading only.


Minimum and Maximum Investment:
Minimum investment: $50,000.00.
Maximum investment is not to exceed 10% of a client’s total investable assets.

Download and Read:
Disclosures and Accredited Investor Questionnaire by clicking here.

Ready to Complete the CATS-VO Form?
We will send the CATS-VO Disclosure and Accredited Investor Questionnaire via a secure link using Docusign--just send us a request by clicking here.

Questions?
Call us at 646-652-6879, or email info@colbyassetmanagement.com.