When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours.
At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us
about these conflicts because they can affect the investment advice we provide you. Here are some examples to help
you understand what this means.
Primarily, we and our financial professionals benefit from the advisory services we provide to you because of the
advisory fees we receive from you. This compensation may vary based on different factors, such as those listed
above in this Item. As noted above, we may have an inventive to encourage you to increase the assets your account.
Formulas' fees also vary based on the platform hosting investment models, including models held on our affiliate's
platform, USA Financial Exchange. Models held on Exchange charge a lower fee. This creates an incentive to recommend
USA Financial Formulas direct accounts.
USA Financial Formulas' team creates and defines each Portformula's overall investment objectives and the investment
selection criteria. Once the investment-selection criteria is defined, however, we use that criteria to determine our
investment recommendations — our proprietary, formulaic process applies the investment selection criteria to a
universe of stocks or investment.
USA Financial Formulas' investment strategies are varied.
The most important thing to understand is that USA Financial Formulas' investment strategies generally utilize equities.
Equities are risky and if you invest with USA Financial Formulas, you need to be able to bear the risk of loss associated
with an equity-laden investment strategy.
Additionally, attempting to eliminate human intervention from the investing process carries unique risks. Our RAM Score
tool tracks market and economic indicators to determine the risk of recession. If the RAM Score tool detects a probable
recession, it will move your assets out of the market. Similarly, once the RAM Score feature detects a probable bull
market, it moves your assets back into the market. However, there is no tool that can predict market performance
with any certainty. Thus, your Portformula could be invested in the market during a significant decline, resulting
in losses, or out of the market during a period of growth, causing you to miss out on market gains.
USA Financial Formulas' investment strategies also involve frequent trading. Accounts are traded on a monthly basis.
Because we trade on an omnibus or block level, we can keep trading costs low, however, you may pay more in transaction
costs than you would if we did not engage in frequent trading. Also, frequent trading can result in tax consequences.
Please be sure to speak with a tax professional regarding any potential tax implications.
USA Financial Formulas' investment strategies utilize securities, primarily equities. Investing in securities involves
risk, including but not limited to, loss of principal, loss of investment gains and missed growth opportunities. Before
investing you must determine whether you are financially capable of withstanding these losses, which could be significant.
Broker Dealer & RIAMember FINRA/SIPC
Formulaic TrendingAsset Management
Turnkey AssetManagement Platform
Insurance & AnnuityDistribution
Multimedia MarketingConsulting & Technology
Business Refinement &Practice Management Consulting
The information, data and opinions contained herein (1) include confidential and
proprietary information belonging to USA Financial Formulas, (2) may not be copied or redistributed,
(3) do not constitute investment advice by USA Financial Formulas, (4) are provided solely
for informational purposes only and therefore are not an offer to buy or sell, and
(5) are not warranted to be correct, complete or accurate. Past performance is not
an indication of future results and actual results may vary. Investing carries an
inherent element of risk. No investment should be made in a USA Financial Formulas account without receiving
and reviewing the USA Financial Formulas ADV. SEC File No. 801-68276. SEC Registration does not imply a certain level of skill or training.