EdgeWare FastBreak Standard Version 6.5 - Manual (Page 46)

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This is the Trendline Stop option. It will sell a fund when the fund trades below its trend-
line. See the Appendix A for details of how FastBreak calculates trendlines. The Size
text box is used to control the significance of the price dips used to draw the trendline. If
a small value is used then smaller price dips will be considered significant and shorter
term trendlines will be drawn. If larger values are used then larger price dips are required
before they are determined to be significant enough to anchor the trendline and the trend-
lines will capture longer term trends. Reasonable values are 0 to 15 for size.
FastBreak can calculate either logarithmic or arithmetic trendlines. The type is deter-
mined by the Use Log Trendline option on the Strategy Tab.
The trendline calculation is very computational intensive and if you have a large trading
family you will notice a significant increase in the time it takes to evaluate a strategy
when using this option.
Note: When this option is selected, a check is made before a fund is purchased to verify
that it is above the trendline. This is done because it would instantly be sold the next
day if this were not the case.
Adjust Trailing Loss
This option is very similar to the Adjustment factor covered earlier on the Strategy tab.
The intent is to adjust the Trailing stop loss if market conditions are different. For exam-
ple, in the above case SP-CP (S&P 500 index) is chosen as the index, with a 0.5 factor
and an EMA Days of 200. As long as SP-CP is trading above a 200 day EMA the user
defined Trailing Loss value will be used (16% for example). If, however, the SP-CP
drops below its 200 day EMA then the 0.5 adjustment factor will be applied, and the
Trailing Loss value will now be 8%. If the strategy uses both periods for the stop, then
the adjustment factor will be applied to both Trailing Stop Loss values.
Any index, fund, or user defined FNU file can be used in the Index.
Adjust EMA Stop
This option is very similar to the Adjust Trailing Loss option just covered. The only dif-
ference is that the adjustment factor is applied to the Exponential Moving Average stop
value. Note: This adjustment does not affect the EMA Crossover stop.