EdgeWare FastBreak Standard Version 6.5 - Manual (Page 10)

10
 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 in-
teger (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 com-
mon 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 dif-
ference 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 mini-
mum holding period value. This is now very similar to setting the top % to zero per-
cent. One difference is that if more than one fund can be sold on a given day the
Harnsberger option will sell the weakest (as measured by Sell ranking) fund. We now
put an H in the Why Detail file column to indicate a Harnsberger sell.
 Stop loss using a short/long Exponential Moving Average (EMA) crossover. This is
similar to the current EMA stop except that the fund NAV is smoothed with a short
term EMA.
 Buy filter using a short/long Exponential Moving Average (EMA) crossover. This is
similar to the current EMA Buy filter except that the fund NAV is smoothed with a
short term EMA.
 The next four enhancements are all similar in that they allow the user to modify stop
or buy filter options according to market conditions or a user defined input file. The
modification is triggered when an index (or any user defined fund or FNU file) drops
below its user defined EMA line. For example, if the S&P is used as the index then
the parameters are not modified as long as the index stays above a user defined EMA
line. If the S&P falls below its EMA line then a factor is applied to the standard
value. A simple example is that when the market is in a strong uptrend high beta
funds may be a good investment option. However, when the market is in a downturn
or trading market it may be prudent to purchase low beta funds.
o Adjust the Trailing Stop Loss value based on market conditions or external
file input.
o Adjust the EMA Stop value based on market conditions or external file input.