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## Complete Registration to Activate Trading

Complete Registration to Activate Trading

# Trading Portfolio Allocation

## Client Information

Client Name Sean Kelly
Advisor Name Carolyn Greenwood Nelson
Advisor CRD 2081477
Advisor Firm DA Davidson
Date

## Proposed Trading Portfolio

Initial Capital 2,000 USD
Base Currency USDC
Investment Focus High-yield income with quarterly growth potential through aggressive allocation
Primary Goal Target 5-7% quarterly returns (scaling to 10% as strategy matures) through hybrid active/passive approach

## Trading Portfolio Allocation Overview

Asset Class | Allocation | Description
--- | --- | ---
Core + Speculative Cryptocurrency | 40% | BTC, ETH foundation with actively rotated altcoins (SOL, AVAX, LINK) to capture asymmetric upside
High-Yield Dividend Stocks & ETFs | 30% | Monthly/quarterly income producers (QYLD, PSEC, AGNC) to balance crypto volatility
Small-Cap Growth & Momentum Stocks | 20% | Tactical trades in breakout names and earnings-driven movers for short-term upside
Cash / Stablecoin Reserve (USDC) | 10% | Liquidity for quick position entry and market dip opportunities

## Strategy Notes

### Cryptocurrency Allocation (40%)

This high-risk segment reflects your aggressive approach, combining core holdings (BTC, ETH) with actively managed altcoin exposure (SOL, AVAX, LINK). The strategy aims to capture explosive price movements during market cycles while maintaining disciplined position sizing. Crypto assets will be held in a blockchain wallet with USDC as the base currency for efficient trading and tax management.

### High-Yield Dividend Stocks & ETFs (30%)

This income-generating segment includes covered-call ETFs (QYLD, JEPI) and high-dividend stocks (PSEC, AGNC) that provide consistent cash flow. The yield helps offset crypto volatility while contributing to quarterly return targets. Dividend payments will be automatically reinvested or held as cash based on market conditions.

### Small-Cap Momentum Stocks (20%)

This tactical allocation focuses on short-term growth opportunities in small-cap equities. Positions will be based on technical breakouts, earnings catalysts, and sector momentum. Typical holding periods range from days to weeks, with strict stop-loss protocols to manage risk in this volatile segment.

### Cash/Stablecoin Reserve (10%)

Held in USDC to maintain flexibility for quick position entry or scaling into opportunities during market pullbacks. This reserve also serves as a volatility buffer and provides dry powder for unexpected opportunities without needing to liquidate core positions.

## Key Considerations

The 40% crypto allocation reflects your high risk tolerance and desire for asymmetric upside potential. This exceeds typical portfolio recommendations but aligns with your objectives.

Dividend stocks and ETFs provide income to help smooth returns while maintaining growth potential through covered call strategies.

Small-cap allocation offers tactical growth opportunities but requires active monitoring due to higher volatility.

Initial 5-7% quarterly target is more sustainable than 10% for a starting portfolio, with plans to increase targets as the strategy proves successful.

Hybrid approach allows you to participate actively when desired while maintaining passive elements for consistent execution.

Performance-based fee structure aligns our interests - no fees unless your capital grows.

## Trading Portfolio Allocation Chart

Cryptocurrency 40%
Dividend Stocks/ETFs 30%
Small-Cap Stocks 20%
Cash/Reserve 10%

These terms and conditions ("Agreement") governs the relationship between Sean Kelly ("Client") and Carolyn Greenwood Nelson ("Advisor") of DA Davidson ("Firm") regarding discretionary investment management services for a high-yield portfolio strategy.

## 1. Purpose of Agreement

This agreement establishes the framework for managing an aggressive, high-yield investment portfolio targeting quarterly returns through a combination of cryptocurrency, dividend securities, and small-cap equities. The Advisor will provide discretionary management based on the Client's stated high-risk tolerance and income/growth objectives.

## 2. Scope of Service

The advisor will manage and/or guide the investment of funds deposited by the client into his trading account structured and tracked in USD Coin (USDC) or USD-equivalent terms.

Services include:

- Access to a managed model portfolio which may include elements of copy trading.
- Ongoing portfolio monitoring and rebalancing.
- Tailored investment decisions aligned with the client's stated risk profile and objectives.
- Trade-idea-based communication (where applicable).

## 3. Execution of Trades

Execution of trades will occur under a copy-trading format, where the client's portfolio mirrors a master portfolio managed by the Advisor. Adjustments will be made when necessary to reflect the Client's specific risk tolerance and objectives. Client can view real-time updates, monitor trades, and track performance.

## 4. Withdrawal

Funds can be withdrawn at anytime, provided they are not currently involved in an active trade.

## 5. Fee Structure

1. No upfront or flat management fees will be charged.
2. A performance-based fee of 15% will apply to net realized profits. No fee is charged unless the portfolio achieves gains, ensuring full alignment between the Advisor's and Client's interests.
3. Fees are calculated in the base currency (USD or USDC) and settled accordingly.
4. This fee arrangement may be reviewed and adjusted over time, subject to mutual agreement based on portfolio performance, size, or other relevant factors.
5. The client has final approval authority on all transactions.

## 6. Risk Disclosure

1. Investments in cryptocurrency and equity markets carry inherent risks, including the risk of partial or total capital loss.
2. Past performance is not indicative of future results.
3. The advisor will take reasonable steps to manage risk but does not guarantee returns.
4. Client acknowledges and accepts these risks before engaging in this investment service.

## 7. Confidentiality and Data Protection

The Advisor is committed to protecting the Client's personal and financial data in accordance with applicable data protection laws and industry standards.

All digital communications, account access, and documentation are secured using encryption protocols. The Client's data will not be shared or used for any purpose other than for providing agreed services, unless required by law or explicitly authorized by the Client in writing.

## 8. Termination

1. Either party may terminate this agreement at any time with written notice.
2. Upon termination, all positions will be closed (if under full management) or transferred to the client for independent management.

## 9. Consent & Agreement

By proceeding with the portfolio, the client acknowledges understanding and agreement to the terms stated herein. The client further confirms that all information provided in the questionnaire is accurate and complete to the best of their knowledge.

## 10. Limitation of Liability

1. The Advisor shall not be held liable for any direct or indirect loss resulting from system outages, internet connectivity issues, platform malfunctions, or data transmission failures beyond their control.
2. The Advisor shall not be responsible for any delay or failure to perform obligations under this agreement due to force majeure events, including but not limited to natural disasters, pandemics, war, civil unrest, or regulatory changes.
3. The Client remains responsible for adhering to any investment restrictions or limitations applicable to their personal or legal circumstances. The Advisor shall not be held liable for non-compliance in this regard unless explicitly informed in writing and acknowledged.
4. The Client is responsible for maintaining the confidentiality of their login credentials and notifying the Advisor promptly of any suspected unauthorized access.

## 11. General Provisions

1. All amendments or modifications to this agreement must be made in writing and mutually signed or acknowledged by both parties.
2. Any waiver granted under this agreement shall be in writing and shall apply only to the specific instance for which it was granted.
3. The rights and remedies of each party under this agreement are cumulative and do not exclude any rights provided by law.
4. The partial exercise of any right or remedy shall not prevent its future full exercise.

## 12. Communication and Access

1. All official communication regarding this agreement, trade updates, and performance summaries will be conducted through the Advisor's designated platforms or official email address (carolyn.nelson@davidsonwealthteam.com).
2. In rare technical cases where firm channels are temporarily unavailable, clients may be contacted through alternate means, but documentation will resume on the official platform as soon as possible.
3. Notices are deemed received when electronic confirmation of transmission is acknowledged.

## 13. Governing Law and Jurisdiction

1. This agreement shall be governed by and interpreted in accordance with the laws of the jurisdiction under which the Advisor operates.
2. Any disputes arising under or in connection with this agreement shall be subject to the exclusive jurisdiction of the competent courts in that jurisdiction, unless otherwise mutually agreed upon in writing.

## 14. Conflict of Interest

The Advisor agrees to act in the best interest of the Client and to disclose any actual or potential conflicts of interest that may arise during the course of this engagement.

Where possible, measures will be taken to avoid conflicts. If a conflict cannot be avoided, the Advisor will provide full transparency and obtain the Client's consent before proceeding with any related action.

## Agreement Confirmation

By checking the box below, you confirm that you have read and understood these terms and conditions, and agree to proceed with the trading portfolio allocation.

Agree to continue
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