EdgeWare FastBreak Pro Version 6.5 - Manual (Page 11)

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often fail resulting in a whipsaw trades. We saw the need for market timing
signals that would keep the trading system out of the very worst of markets.
There are numerous market timing signals available but so many of these are
not robust and fail the test of time. Also, we wanted to develop our own
signals that met our needs, e.g., switches per year, drawdown, markets traded
etc.
o One disadvantage of the many market signals available is that they are
developed for a specific index, e.g., S&P 500 Index.
Often there is a
divergence in different stock indexes, i.e., small cap stocks performing well
while large cap stocks are not. FastBreak allows the use to combine multiple
indexes (or any stock, fund, FNU file) into a family. This allows the user to
build signals that stay in a buy mode if any of the indexes are in an uptrend
and will only signal a sell signal if all are in a down trend.
o We have used this capability to build signals for trading diversified mutual
funds and individual stocks. We have also used it to build market sector
specific signals; for example, we have built signals to build trading systems
for energy stocks.
o Signal file building systems can be run like a regular FastBreak trading
system, except the output is a FastTrack signal file. This signal file can then
be used in a FastBreak trading system or other FastTrack applications.
 Rank using Ulcer Performance Index (UPI). This option will tend to purchase high-
UPI funds and produce strategies that have a high UPI equity curve.
 Rank using Sharpe Ratio. This option will tend to purchase high Sharp Ratio funds
and produce strategies that have a high Sharp Ratio equity curve.
 Removed the Long Rank + Short Rank momentum ranking option. This option had
the tendency to give ambiguous ranking order because the value produced was an
integer (whole) number and more than one fund could have the same value.
 Removed the Families/Individual option on the Funds/Index tab. This option was
never very useful.
 Changed the logic in the Harnsberger option. Previously, Harnsberger would only
trigger a sell if you were not holding the top Buy ranked fund. This made sense on
early versions of the program when we didn't have buy filters. Now, it is very
common for you not to hold the #1 Buy ranked fund because of the filters. Also, with
some users having large numbers of funds or stocks in their trading families, the
difference in rate of change between the #1 Buy ranked fund and the Nth Buy ranked
fund may be very small. However, the Nth ranked fund may meet all your buy criteria
when the #1 fund does not. We changed the logic so that it will always try to buy a
top ranked fund that meets your buying criteria. The fund sold must meet your