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Stops Guide

Recognia has implement two different stop mechanisms to help investors minimize losses from adverse price movements. The following sections describe
these stop mechanisms.

Recognia Trailing Stops


Recognia Trailing Stops utilize a proprietary algorithm for improved position exits. These stops seek to minimize risk while maximizing profit for either
long or short positions taken upon identification of a Technical Event. The algorithm is based on a statistical analysis of the historical prices, using a price
filter line algorithm with two different noise statistics. As a trailing stop, the calculated stop level always follows the direction of profitable close price
movement, yet will not reverse direction if close prices reverse, thereby protecting a portion of any gains made in the position. The trader has the option
to control the proximity of the stop via a slider mechanism with labels "Tight", "Medium" and "Loose".

The Recognia Trailing Stop level is recalculated at the end of every trading session. Intra-day stop penetration alert notifications are sent where
intra-day price services are available and when chosen by the trader, otherwise, stop penetration alerts are calculated after session hours based on the
session close price relative to the previous day's trailing stop level. Note that only one alert notification is sent, with future stop monitoring on that stock
being disabled once the first notification is sent.

Percent Trailing Stops


Percent Trailing Stops maintain a fixed percentage offset level when prices are in the profitable direction. As a trailing stop, the calculated stop level
always follows the direction of profitable close price movement, yet will not reverse direction if close prices reverse, thereby protecting a portion of any
gains made in the position.

The Percent Trailing Stop level is recalculated at the end of every trading session. Intra-day stop penetration alert notifications are sent where intra-day
price services are available and when chosen by the trader, otherwise, stop penetration alerts are calculated after session hours based on the session's
close price. Note that only one alert notification is sent, with future stop monitoring on that stock being disabled once the first notification is sent.

2017 Recognia Inc. All Right s Reserved. The inform at ion cont ained herein: (1) is propriet ary t o Recognia and/or it s cont ent providers; (2) m ay not be copied
or dist ribut ed; (3) is not warrant ed t o be accurat e, com plet e or t im ely; and, (4) does not const it ut e advice or a recom m endat ion by First Met roSec,
Recognia Inc. or it s cont ent providers in respect of t he invest m ent in financial inst rum ent s. Neit her First Met roSec nor Recognia Inc. nor it s cont ent providers
are responsible for any dam ages or losses arising from any use of t his inform at ion. Past perform ance is no guarant ee of fut ure result s.

Pricing, hist orical chart dat a and fundam ent al com pany dat a are provided by Morningst ar Research Inc.

Technical Event and Recognia are regist ered t radem arks of Recognia Inc.

Recognia product s and services are prot ect ed under U.S. Pat ent Nos.: 6,801,201; 7 ,469,226; 7 ,469,238; 7 ,835,966; and 7 ,853,506; and corresponding
foreign pat ent s.

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