For the Long-only portfolio, Taos uses a number of different quantitative and discretionary strategies that are combined to build a portfolio that seeks high risk-adjusted returns. This strategy is designed to produce both growth and income. It is designed for tax- advantaged accounts such as an Individual Retirement Account (IRA). Types of instruments that are used include: individual equities, exchange traded funds or notes, bonds, notes, and exchange traded options. All positions will be long only, except for options positions, which maybe long or short. Acceptable options strategies are covered call and long call. While covered call is a short options strategy, it requires being long the underlying equity. The strategy does not attempt to use margin or leverage. In rare instances where the Taos is forecasting for a negative market, the strategy may seek to be long inverse ETFs, which rise in value when the underlying asset declines in price. The main risk control for this strategy is cash, which will be raised and lowered based on a market risk assessment. Long-Only clients do not need to pass this qualification test.