Rules & Constitution

The Mobius club has been a member of Proshare since January 1998. The club rules and constitution are based on those issued by Proshare. As such, all members joining the club have been requested to familiarise themselves with both the rules and constitution and have also signed the appropriate documents (including the trustees documents for share dealings).

Proshare Rules
Proshare Constitution

Additional rules, guidelines and good practice specific to the Mobius Club

  1. A member whose share is selected for purchase becomes the champion for that share. It is the responsibility of the champion to notify the dealer of the club if a stop-loss has been broken or a particular event triggered. However, other members will monitor the club's share price movements.
  2. In monthly meetings, there is a special Section on portfolio updates. Champions are expected to brief the club on any updates for that share, in particular charts, news updates, possible accumulate notice or forthcoming events.
  3. If a member cannot attend a particular monthly meeting, then it is up to the member to notify the chairman or the host of the meeting.
  4. Minutes takers should note that the minutes should be circulated no later than two weeks after the meeting. These should be emailed to all members. The Minutes should also be available on the Website shortly after.
  5. A share whose price reaches the agreed stop-loss (S/L)is automatically sold. There is no need for consultation.
  6. Once a toolkit has been proposed and the company presented at a meeting, the club can complete a decision on further purchases (or just accumulate) in this share entirely via email. An accumulate decision requires three votes (plus proposer).
  7. It is possible to agree the purchase of a new share without holding a formal meeting by submitting a toolkit via email to all members. Four members (plus proposer) need to support such a purchase. Note that this is not the usual practice. Normally, all shares need to have a toolkit prepared, be presented and debated at a formal meeting.

Stop/Loss (S/L) definition: A fall through S/L during the day must be followed by the share price (SP) remaining below S/L after the close and through the following day. On third trading day it should be sold in morning assuming it has not gone back above S/L.

Note: For all semi-systematic an systematic portfolios, we set S/L relative to buying price; so we need to compare the S/L relative to the buy price (ask price) - not the mid.