EdgeWare FastBreak Standard Version 6.5 - Manual (Page 27)

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ago. The long period NAV ratio is: 18.00/17.45=1.0315, and the short period NAV ratio
is: 18.00/17.75=1.014. Multiplying these two ratios together: 1.0315 X 1.014= 1.046.
This is done for each fund, and the multiplied ratio results are used to do a ranking with
the fund having the largest value as the #1 fund.
When this option is selected four new boxes appear on the screen, Min Long, Max Long,
Min Short, and Max Short. This allows a range of long and short combinations to be
tested. This will be explained shortly.
Buy & Sell: Long Rank * Short Rank - This option also combines long and short term
price performance to rank funds. A ranking of the family is made over a long look-back
period and then a second ranking is made over a short look-back period. The actual rank-
ing positions are multiplied together, and this final result is used to make a third and final
ranking. For example, a fund may be ranked number 5 in the trading family over the past
40 market days and ranked number 8 over the past 5 market days. The result of multiply-
ing these two ranking positions together is: 5 X 8 = 40. As you can see, the lower the
ranking value the smaller the final result, therefore, when the third and final ranking is
performed on this multiplication of two ranking periods the fund with the LOWEST
value is ranked number one.
When this option is selected four new boxes appear on the screen, Min Long, Max Long,
Min Short, and Max Short. This allows a range of long and short combinations to be
tested.
Buy & Sell: Buy and Sell using UPI – Calculation of Ulcer Performance Index (UPI) is
explained in the Appendix. Choosing this option ranks funds based on a short term UPI
value. This usually results in buying funds that have a smoother equity curve
Buy & Sell: Short EMA/Long EMA - This option creates a ratio of the Short Exponen-
tial Moving Average (EMA) divided by a Long EMA. If a fund is starting to move up,
the short EMA will be a larger number than the long EMA. The ratio for all the funds is
then ranked from largest to smallest. When a fund starts to turn down the ratio will be-
come smaller.
Buy & Sell: General Anchored Momentum - This option is based on work by Rudy
Stefenel and published in Technical Analysis of Stocks & Commodities. See Appendix A
for a detailed description.
Buy & Sell: Most Anchored Momentum - This option is based on work by Rudy Ste-
fenel and published in Technical Analysis of Stocks & Commodities. See Appendix A for
a detailed description.
Buy & Sell Using Alpha Ranking – This option ranks funds based on short term “al-
pha.” See Appendix A for a detailed description of alpha.