Hypothetical or Simulated Backtest Results…

The performance results shown, are based on simulated or hypothetical performance results, based on a fully-automated algorithm for the dates specified, which identifies stocks which would have been historically bought/sold, based on the specifed screening and ranking rules for the portfolio. Note that hypothetical performance results have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading, but simulated trading. Also, because these trades have not actually been executed, these results may have under – or over – compensated for the impact, if any, of certain market factors, such as lack of liquidity.

Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those being shown. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.