Our principal investment and market-risk management tool has been developed
in-house. Using sophisticated computer-aided modeling programs, BTS then conducts technical market analysis. All decisions made are based on in-house analysis.

We use our models to identify and follow 60-120 day market trends. Our objective is to be in a market for 75-80% of an uptrend and out of a market for 75-80% of a downtrend.

Our trend analyses are based on the observation that, historically, certain conditions have been closely associated with price changes. BTS monitors these conditions daily and identifies trends where possible.

It is important to note that we do not attempt to predict trends. We believe that trends cannot be predicted consistently over time, as the variables are simply too complex and volatile.

In fact, studies show that the famous prognosticators are right only half the time over the long run! Anyone could match their records just by flipping a coin.

The key to developing effective investment and risk management programs is access to timely, detailed information. That is why BTS maintains an extensive database in several computer systems.

Some of our data goes back to 1900, and new information is added daily. Our systems professionals have spent thousands of computer hours to create BTS' current models. Some of the technical indicators and data sources which may be used in BTS' analysis include:

	Dow Jones Bond Index		Relative Strength Studies
	Momentum Indicators		Gold and Gold Fund Prices
	International/Global Fund Prices		S&P 500 Index
	Treasury Bill Futures Prices		Prices of Municipal Bond Funds
	Trend Indicators		Money Market Yields
	On Balance Volume		New Highs and Lows
	NASDAQ Index		Stochastics
	Prices of High Yield Funds		Moving Average Convergence/Divergence
	Moving Averages and Trendlines		Treasury Bond Fund Prices and Yields

Liquidity is enhanced during significant market declines by investing your assets in a stable price-per-share money market fund. This could help you avoid loss in the instance where, in order to meet unexpected or emergency needs, you would have to sell shares at below their purchase price.

Using BTS Tactical Asset Allocation Investment Models, avoiding loss of principal is the key strategy for long-term investment success.

Since each market fluctuation contains the potential for gain or loss, proper management of investment and market-risk is crucial. Successful investing depends on the type of investment (stocks,bonds,etc.), when you invest, and the duration of the investment. Holding an investment too long, or not long enough, can make the difference between a handsome gain and an ugly loss.

At BTS, we believe the best way to realize consistent returns over time is to avoid large losses of principal during the inevitable declines that all markets experience from time to time.

By following a disciplined defensive strategy in declining markets, you can seek to preserve your capital and avoid a loss. This positions you to take advantage of opportunities when the market heads back up by purchasing more shares at a lower price.

How can investors pursue market-like returns and seek to mitigate risk and protect principal with the prices of stocks, bonds, mutual funds and variable annuities constantly fluctuating?

One solution is investment market risk management strategies provided by BTS Asset Management. Since 1979, we have been developing effective investment and market risk management programs for mutual fund and variable annuity clients seeking income and/or total return over a 5 to 7 year period.