EdgeWare FastBreak Standard Version 6.5 - Manual (Page 51)

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Adjust EMA Buy Filter
This option is very similar to the Adjust Beta Buy Filter option. The intent is to adjust
the EMA Buy Filter value based on an index crossing below its EMA value. The factor
can be greater or less than 1.
Combine/Complementary Systems
Note: This function shouldn’t be considered a Buy Filter. It was placed on this screen
simply because there was room available. This functionality was primarily added to al-
low FastBreak Pro to automatically build a new trading system in conjunction with one or
two existing trading systems. See the FastBreak Pro manual for more details. One use of
this capability is to build complementary systems that may reduce the MDD or volatility
of an entire portfolio that is trading multiple systems. Standard FastBreak users can use
the capability in a manual manner to build systems or to determine how to balance alloca-
tions between two or three systems to meet risk goals.
As an example, perhaps the investor has developed a system that trades ETFs. The an-
nual return of this system may be excellent but has significant drawdowns on a regular
basis. This is often the case with a system that trades based on very long term trends
without the benefit of tight stops. This capability allows you to import the equity curve
(FNU file) from this existing system(s) and combine it with the currently loaded system
(DFT file) and show the summary results when the systems are traded together.
The option is very simple to use. Perhaps you have already built two trading systems and
you want a complementary system that works together with these two systems. Let’s say
one of the existing systems outputs an FNU equity curve called ETF14 and a second sys-
tem with an FNU equity curve called ETF17. Also, you know you want to invest 50% of
your portfolio in ETF14 and 30% in ETF17. Now, you want to invest the remaining 20%
of your portfolio in a new system that works together with ETF14 and ETF17. With
these assumptions the screen would look like the following:
FastBreak will look at the Weight% values you have entered and sum them, in the case of
our example that would be 80%. FastBreak then assumes when you execute the currently
loaded system it will have the remaining 20% weighting (20%= 100% - 80%).