EdgeWare FastBreak Standard Version 6.5 - Manual (Page 43)

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Parabolic
See Appendix A for an explanation of this stop function. FastBreak allows the user to set
the Start, Maximum, and delta value (shown as Acceleration on the screen) for the para-
bolic Acceleration Factor.
Note: When this option is selected, a fund trading below its parabolic will not be pur-
chased even though it may be ranked very high in the trading family. This is done be-
cause it would instantly be sold the next day.
Kase Dev
See Appendix A for an explanation of this stop function. FastBreak allows the user to set
the period over which the Dev-Stop is calculated and the number of Standard Deviations
to apply.
Dynamic (Trailing Stop Loss)
This option is very similar to the Trailing Loss% except the stop is adjusted by the vola-
tility of each fund. The user inputs a Nominal % trailing stop which is multiplied by a
fund’s daily standard deviation divided by the average daily standard deviation of all the
funds in a trading family. The standard deviation is calculated over a “Period” defined by
the user. For example, if the Nominal % is set to a 7% stop loss and a fund has a standard
deviation that is 50% greater than the average fund in the trading family (over a user de-
fined number of trading days), then the stop loss will be 10.5% (1.5x7%) for this fund.
On the other hand, if a fund has a standard deviation that is 20% less than the average
fund in the trading family the fund’s stop will be 5.6% (0.8x7%).
The value of this stop option is to allow funds with high volatility to have more “maneu-
ver room” while keeping a tight stop on funds that have less volatility.
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