EdgeWare FastBreak Standard Version 6.5 - Manual (Page 31)

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Typical FastBreak trading systems usually buy maximum price strength/momentum.
Trading systems can take a different approach and successfully take advantage of buying
temporary price weakness or selling into short term price strength. RAT is an option to
take advantage of these temporary moves. The assumption is that the move is temporary
and the price will revert to trend. Note: Please see Appendix for a much fuller explana-
tion of how RAT works along with graphical examples.
Note: RAT will only work with Linear Slope ranking. See Appendix for explanation.
Note: The next several parameter boxes do not have as much significance for users of
FastBreak Pro as they do for users of the Standard version. The genetic algorithm
optimizer in FastBreak Pro will determine values for all trading system parameters,
including the ranking parameters. However, FastBreak Pro users can use the follow-
ing parameter options to “fine tune” the ranking periods in their trading systems. See
FastBreak Pro manual for more details.
Buy min, Buy max, and Buy Delta days
These three parameters define all the test cases that FastBreak will evaluate as buy rank-
ing periods. The units are market days. For example, if Buy min = 2 , Buy max = 50,
and Buy Delta = 1, FastBreak will loop through all ranking periods between 2 days and
50 days or 49 test cases. Setting Buy Delta = 3, FastBreak will increment the test cases
by 3 days, i.e., 2, 5, 8 ... days and this can greatly reduce the run time. If Buy min and
Buy max are set to the same value all test cases will be evaluated using that value. Note:
These ranking periods are “market days” and not calendar days. You must under-
stand the difference. This is the same method used in FastTrack for ranking period. If
you want to rank over the past month this will be about 21 market days.
When using a “buy using slope strategy,” these parameters are used to determine the
number of days over which the price data is curve fit. When using UPI or Sharpe Ratio
ranking, these values are the number of market days used to calculate either UPI or
Sharpe Ratio.
Sell min, Sell max, and Sell Delta