EdgeWare FastBreak Standard Version 6.5 User Manual
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without the benefit of tight stops. FastBreak now allows you to import the equity curve
(FNU file) from this existing system and combine it with a complementary system that
reduces the overall MDD when the two systems are traded together.
This functionality can also be used to combine FastBreak trading systems that comple-
ment non-FastBreak trading systems.
Bug Fix and Better Error Checking on Early Start Date
V6.5 fixes a problem when the Correlation Check option is used. Sometimes the correla-
tion check wasn’t properly being applied.
As more and more users use ETFs that have a limited price history that would result in
errors if a user selected a start date that is too early. We have made changes that will re-
sult in fewer errors/crashes if an early start date is chosen. A user should still try to select
a start date that is relevant to the beginning of price data for funds in the trading family.
BOOM (Breakout Optimization Method) with Linear Slope Ranking
Long term FastBreak users are familiar with the BOOM option for ranking. Read the de-
scription for the option later in the manual. We have made BOOM available to use with
the Linear Slope ranking method. In recent years we have found that Linear Slope is a
great ranking method for stocks and ETFs. This ranking method appears to help adjust
for the greater volatility of stocks/ETFs vs. the less volatile mutual funds so allowing
BOOM to be used with Linear Slope was a natural extension.
Buying Weakness and Selling Strength
FastBreak Pro V6.5 adds two new capabilities (RAT and BAT) for buying and selling
into what may be permanent or temporary strength. Some of the changes are intended to
build systems that are complementary to traditional FastBreak systems that always buy
into strength. This will become clear as each of the new options is explained. Note: The
new options will only work with Linear Slope ranking. We will give only a brief over-
view here in the upgrade notes. More information can be found later in the manual
with calculation details in the Appendix.
RAT (Return Advance to Trend)
Typical FastBreak trading systems usually buy maximum price strength/momentum.
Trading systems can take a different approach and successfully take advantage of buying
temporary price weakness or selling into short term price strength. RAT is an option to
take advantage of these temporary moves. The assumption is that the move is temporary
and the price will revert to the trend.
BAT (Breakout Above Trend)
Sometimes a stock will have a good positive long term price trend, but for various rea-
sons new buying will come into the stock and an even better trend will be established.
This is different from the BOOM option which tries to determine when a stock that has
been falling breaks out to the upside.