EdgeWare FastBreak Standard Version 6.5 - Manual (Page 30)

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Breakout Optimization Method (BOOM)
This is a very powerful proprietary option available only in FastBreak. The exact process
of how the option works is not fully disclosed at this time because of the proprietary na-
ture. BOOM often allows a strategy to purchase a fund much earlier in an up-trend
breakout than would be captured by standard ranking methods. Note: The BOOM option
will not work with all ranking strategies. See the table at the end of this chapter.
This option is very effective and we recommend that you consider testing with the option.
There are three parameters required. From left to right we will call them Parameter 1, 2
and 3. Note: This option was designed with the intention that the optimizer in Fast-
Break Pro would find optimum parameter values. The method used in BOOM has lit-
tle intuitive meaning, and suggesting reasonable values without the benefit of the opti-
mizer in FastBreak Pro is very difficult. Here are some suggestions. Value for Parame-
ter 1 is 30, Parameter 2 is 5 and Parameter 3 is 1. If you find that a trading system is buy-
ing a fund too early on a breakout and you are buying too many false rallies, consider in-
creasing Parameter 2. If rallies are purchased too late then consider decreasing Parameter
2.
Breakout Above Trend (BAT)
Sometimes a stock (or fund) will have a good positive long term price trend, but for vari-
ous reasons new buying will come into the stock and an even better trend will be estab-
lished. This is different from the BOOM option which tries to determine when a stock
that has been falling breaks out to the upside. The parameters used by BAT are very
similar to the way BOOM works. Note: This option was designed with the intention
that the optimizer in FastBreak Pro would find optimum parameter values.
The
method used in BAT has little intuitive meaning, and suggesting reasonable values
without the benefit of the optimizer in FastBreak Pro is very difficult. See the guidance
for choosing parameters in the BOOM description above.
Please refer to Appendix A
to see a much fuller explanation of how the BAT function works along with graphical
examples. The Appendix also explains how BAT can work in conjunction with Return
Advance to Trend (RAT).
Note: BAT (and RAT) will only work with Linear Slope ranking. See Appendix for ex-
planation. Also, BAT will not work with the ranking Adjust option. Both of these op-
tions adjust the ranking periods and if you try to use them together they will conflict.
Return Advance to Trend (RAT)