MRVB DEMO -- TEST 1 -- FINAL RESULTS Test Explana

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Test Explanation: The MRVB hedge test must demonstrate the ability to maintain the beginning day trading balance within 10 percent negative tolerance.

Test Parameters:
• MRVB Funding: $10,000
• Must Acquire Asset in Negative Rating State
• Asset Acquired: SDRL
• Test Time in Force: Three Trading Sessions
• Expected Outcome: 95 to 100 percent Hedge

The first testing of the MRVB DEMO concluded yesterday as of 8PM After Market close.

Final 1st Test Results:

Thursday, May 26
• Acquired SDRL; negative/avoid rating
• SDRL declined .26 price per share; Hedge increased .21 price per share; .05 price per share slippage
• SPCL increased 100 percent
• Maintained 95 percent hedge against price per share decline
• No loss to Beginning Day Trading Balance

Friday, May 27
• SDRL recovered 100 percent value
• SPCL remains 100 percent
• Added .03 price per share
• Account value increased $492 over $10,000

Tuesday, May 31
• SDRL declines .28 price per share
• Hedge rises .29 price per share
• Account value $10,147
• No loss to initial investment

Test #1 SUMMARY
• SDRL acquisition declines twice during testing
• Hedge Successful
• No loss to initial investment

Test #2 Begins Today
• Reduce acquired investment to $3,400
• SDRL will be sold at 28 percent decline
• Hedge removed
• SPCL stays in play
• Will hold assets for three trading sessions then return hedge to recuperate any decline to initial investment, if applicable

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