EdgeWare FastBreak Standard Version 6.5 - Manual (Page 44)

44
that the Period be set to at least thirty trading days to calculate a standard deviation that is
statistically significant.
Exponential Moving Average
This stop will sell a fund when it drops below its exponential moving average (EMA) that
is calculated over a user defined “Period”. For example, if a period of fifty (trading) days
is used, the fund will be sold when the NAV drops below the fifty day EMA. For a defi-
nition of EMA see FastTrack Help.
Note: When this option is selected, a fund trading below its exponential moving aver-
age will not be purchased even though it may be ranked very high in the trading fam-
ily. This is done because it would instantly be sold the next day.
Better Opportunity Sell Signal (BOSS)
Every investor has at times seen a fund (“hot” fund”) increasing at a much faster rate than
the fund(s) currently held. The fund held continues to be held for a variety of reasons,
i.e., the minimum holding period hasn’t been reached or the fund hasn’t fallen out of the
Top%. The question is, “Should the fund held be sold and the “hot” fund purchased?”
Of course, if the stronger fund is increasing at only a slightly faster rate than the fund held
the answer is likely - No. If it is at a much greater rate, then the answer is likely - Yes.
The Value in BOSS is the difference in an annualized rate between the fund held and the
stronger fund. The rate is measured over the ranking period. For example, if the fund
held is increasing at the rate of 30% per year measured over the ranking period and BOSS
is set to 40, then a sell signal will be generated if a strong fund is increasing at the rate of
70% or more. Again, the rate is an annualized rate measured over the ranking period.
Note: The value put in BOSS is approximately an annualized rate for all but the simple
rank buy and sell option. The reason the value is only approximate is due to the way
data is smoothed in the different ranking techniques. The recommend value range for
BOSS is 50-100. This may seem quite high but setting to a lower value will result in a
great increase in switches without a corresponding increase in return. The Detail out-
put will show when BOSS was used as a sell signal. If you find too many sells using
BOSS, then increase the value to a higher number.
BOSS is not available with all
ranking options. See the summary table at the end of the previous chapter.
Min ROR Sell Filter