Theta is Featured at the Dallas Texas Chapter of the Market Technicians Association (MTA) Mike Posey, Theta Research’s Marketing Director, was recently the featured speaker at the Dallas MTA Chapter meeting. Like his previous presentations to other MTA Chapters, Mike shared his experienced-based insight on the due diligence process. Mike’s goal is to highlight business concerns once the heavy lifting of creating a trading model is done. The presentation was primarily educational in nature with a focus on why it is important for Investment Managers to have a track record made up of actual, verified returns. Mike also discussed the inherent limitations of backtesting from a due diligence standpoint and why it’s especially important for early-stage Managers to document their performance in real-time trading. Mike’s comments about his experience in the due diligence field closely follow those expressed in his white paper – The Importance of Actual Returns in the Due Diligence Process, a copy of which is available free of charge from Theta Research. Existing Managers Post New Tracking Accounts Theta Research is proud to announce the addition of two new active strategies from Investment Managers who already have programs being tracked. First, Brian Boughner, CFA, CMT, co-founder of Parallel Financial Partners has initiated tracking of a new strategy. The Parallel High Beta strategy is managed by Chief Investment Officer, Greg Towner, CFA, CMT and trades at Charles Schwab. Theta Research began tracking this new strategy as of its inception date of January 31, 2017. Next, David Daughtrey, CFA, CFP and principal of Copperwynd Financial has added a new volatility based strategy. The Copperwynd Long/Short VIX strategy trades at TD Ameritrade where Theta has verified its actual performance back to the original inception date of January 1, 2016. Why You Should be a Theta Subscriber We at Theta Research take great satisfaction in building a database of investment strategies based on tactical and quantitative models. If you haven’t yet subscribed to Theta’ database of active investment managers, here are ten excellent reasons why you should consider doing so: 1. Access to Investment Managers You May Not Find Elsewhere 2. Focus on Active Strategies 3. Ground Floor Opportunities 4. Two Levels of Subscription to Choose From (see thetaresearch.com) 5. Constantly Growing List of Managers 6. Verified Performance Net of All Fees and Costs 7. Online Analytics Allow You to Rank and Evaluate Performance 8. In Some Cases, Ability to Reconstruct Historical Track Records 9. Guest Pass Feature Allows One-on-One Contact with Managers 10. Inexpensive and Easy to Subscribe Just how inexpensive are Theta Subscriptions? Our most comprehensive Professional Subscription is $295 per year while our scaled down Basic Subscription is only $195 per year. If you are a member of NAAIM or the MTA, annual subscription prices go even lower. To learn more, go to the subscription section of our website at thetaresearch.com/pricing_page and check out the various options. If you have questions, contact Mike Posey at mike@thetaresearch.com or (512) 628-5201, Option #1.

The National Association of Active Investment Managers (NAAIM) has issued a renewed call for competitors for its “Shark Tank” competition. Since 2013, this unique challenge has allowed NAAIM Members to gain exposure to new ideas employing active management strategies, possibly leading to new business relationships. However, to participate in this year’s Shark Tank Competition, your video presentation must be submitted by February 17th. For Investment Managers who employ active strategies, competing in NAAIM’s Shark Tank competition provides exposure to a room full of Advisors, many of which are seeking viable sub-advisory relationships. It’s an opportunity to describe your investment approach to the markets in your own words and answer questions posed by a panel of seasoned professionals. The opportunity to present your active strategy to other Advisors representing literally billions of dollars of client assets doesn’t come around every day. The NAAIM Shark Tank could provide the exposure necessary to take your business to the next level. To learn more about the Shark Tank Competition and how to apply to compete in this year’s contest download the Shark Tank Rules and Application. For more information about the NAAIM organization, see the NAAIM website home page at [url=http://www.naaim.org]http://www.naaim.org[/url]. We hope to see you at the upcoming NAAIM Conference!

2017 promises to be an interesting year in the markets. What with a new president, expected rate hikes by the Fed and a host of international challenges, an environment of uncertainty may be an understatement for the year ahead. Fortunately, the active management strategies of Theta’s Investment Managers offer the potential to navigate whatever market environment presents itself. Theta Research is pleased to announce the addition of three more actively managed strategies seeking third-party track record verification. These strategies come from an existing Investment Manager as well as a former Manager who has initiated tracking of a new strategy. Included in that number are the following: Models Added by an Existing Investment Manager on Theta: Dr. George Paul Distefano, founder and Portfolio Manager of MIPS Timing Systems, LLC in Houston, Texas has added two new strategies. First is the MIPS/HiYld program, a trend-following approach to high-yield bond funds. Theta Research has independently verified the MIPS/HiYld actual performance back to its inception date of 12/01/2015. Dr. Distefano has also announced the addition of the MIPS33.33 strategy, which is a blend of 65% MIPS 3 and 35% MIPS Nitro strategies. The composite performance of MIPS33.33 has been verified back to the common inception date in September of 2013. A New Active Model from a Former Investment Manager Daniel Turov, founder of Turov Investment Group in San Diego, California formerly had active strategy models tracked by Theta. He has now initiated tracking of a new strategy called QIP, short for Qualified Investor Program. QIP is designed to be a non-annuity version of Turov’s sector strategy. Theta began tracking of this new strategy as of its inception date of January 1, 2017. Stay Tuned – More New Strategies are on Their Way One of the benefits of the Theta Research database of actual performance is that it is not a static list of the same old names and numbers. Instead, Theta has a number of new strategies in various stages of completion which will join the database of active Investment Managers in the near future. So, be on the lookout for our Theta News notices as they may contain just the Investment Manager you’re looking for.

While Theta Research is well known for its ability to verify historical track records generated by established Investment Managers, we are also often called upon to track brand-new strategies, what you might call “ground-floor opportunities.” In today’s Theta News, we have a variety of such opportunities, both from an existing Theta Manager as well as those new to Theta’s tracking database. As you review these new strategies, keep the following in mind:

1. New strategies don’t necessarily mean an inexperienced manager. Experienced Managers often developnew strategies. In addition, even Managers who may not have been trading a long time often have prior experience that gives them a fresh approach to the market;
2. New investment strategies developed by veteran Managers allow you to take advantage of the Manager’s knowledge base and trading experience. It also allows you to review the Manager’s other strategies and their track records, which are often also tracked by Theta Research;
3. New strategies have not been developed in a vacuum. Most have been subjected to extensive backtesting. While we all know that backtesting has its limits and can’t guarantee future results, it’s all that Managers have to demonstrate new concepts until they build up an actual track record;
4. While there are obviously no guarantees, getting in on a ground-floor opportunity may lead to superior performance. We have all noticed that some Managers produce their best returns in the early years of their existence. There are a lot of reasons this may occur, but just because a strategy is new doesn’t mean it doesn’t have merit; and
5. Being tracked by Theta shows the Manager has confidence. Since Theta charges a fee for its actual performance tracking service, Managers with new strategies who are willing to pay to be tracked show that they have confidence in their strategies.

As you review the information below about the ground-floor opportunities on Theta, remember that strategy names and data do not show up on the Theta database until after they have at least three months of actual trading history. Ground-Floor Opportunities for Your Review Veteran Theta Manager, Len Fox, founder of Scarecrow Trading, Inc. in Savage, MN has initiated tracking on two new Rydex-based strategies called NAAIM Indicator Wall 1X and NAAIM Indicator Wall 2X. These strategies seek to capture the actual performance of the proprietary “Indicator Wall” sponsored by the National Association of Active Investment Managers (“NAAIM”). While NAAIM has been publishing the Indicator Wall only to its members for 18 months or so, this is the first time it will be traded in a real-money trading account for tracking purposes. Theta Research began tracking both Indicator Wall strategies as of the inception date of trading on November 28, 2016. Charles R. (Randy) Snook, CFP, CLU, ChFC, CLTC, founder of Snook Asset Management, Inc. of Cedar Rapids, IA is pleased to announce the tracking of five new strategies, all of which are part of his Dynamic Asset Rebalancing (DARe™) series. The names and custodian of each model is as follows: DARe Rydex Sector - traded at Guggenheim/Rydex Funds DARe Rydex Pure Style – traded at Guggenheim Rydex Funds DARe Rydex Pure Style / Inverse Index also traded at Guggenheim Rydex Funds DARe International Country ETF – traded at Pershing DARe Bond Sector Long/Short – traded at Pershing The DARe Rydex-based strategies will be tracked on a daily basis while those traded at Pershing will be tracked monthly. Theta began trading these new strategies as of their inception dates in November and December of 2016. Another New Investment Manager Joins the Theta Database New Investment Manager, Michael Choniski, founder and Managing Director of Trendhaven Investment Management, LLC of Brookfield, CT has initiated tracking of his Trendhaven Managed Risk strategy. This strategy has the benefit of an existing track record of actual performance which Theta has independently verified back to its original inception date of April of 2014.