EdgeWare FastBreak Standard Version 6.5 - Manual (Page 35)

35
This screen option allows you to select the Short Term Redemption Fee (STRF) mini-
mum holding period. If the funds in your family apply a redemption fee if the fund is
traded within a minimum number of days, then use this option. For example, the Fidelity
Select funds have a 0.75% fee if traded within 30 days.
Short loss
This is the percent cost if a fund is sold before it is held the “STRF Min hold” number of
days. For example, some funds have a transaction fee of 0.75% if held less than 30 days.
FastBreak will subtract this fee from a sell trade for a fund that is held less than the
“STRF Min hold” period. The one exception is for the money market fund where Short
loss never applies. Short loss is input as a positive number.
Delay .
Note: Most users will use a 1 day delay. The zero day delay option is a bit archaic at this
point, but may be useful for those who trade stocks/ETFs at the next day open. The zero
day delay option was initially added at user request when Fidelity Select funds had
hourly pricing. Users wanted to trade the Select funds at the next day 10:00 am pricing
and the assumption was that the 10:00 am pricing would be close to the previous day
close. FastBreak assumes you can buy and sell funds on a given day at the 10:00 price
that is equal to the previous day’s closing price. The typical FastBreak user will update
FastTrack each evening and then run FastBreak. If a trade signal is given, the trade
would take place at tomorrow’s closing price when using mutual funds. This would be a
1 day delay. However, if the investor is trading stocks or ETFs then the investor may de-
termine that tomorrow’s 10:00 am trading price may be close to today’s closing price.
FastBreak considers this a 0 day delay. Note: FastBreak uses the FastTrack data base
which contains ONLY closing prices. Therefore, FastBreak has no actual knowledge
of the trading prices other than daily close. Using the 0 delay is an estimation, and it
does not change the actual day that the trades are made.
FastBreak will only support delays of zero or one market day.
Top %
This value determines when to sell a fund or continue to hold. The value input is the per-
cent of all funds available in the trading family that a held fund needs to sustain in order
to continue to be held. For example, assume a trading family containing 28 funds, and
each day all the funds are ranked over some time period. The funds are ranked in order of
strongest to weakest. If Top % is set to 50, then FastBreak will continue to hold the fund