EdgeWare FastBreak Standard Version 6.5 User Manual
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This section will cover enhancements in FastBreak Version 5 and is of interest to users of
previous versions of Standard FastBreak. Note: For users of previous versions of Fast-
Break Pro see the Upgrade Notes in the supplemental FastBreak Pro manual.
You may ask how Version 5 of Standard FastBreak is different from previous versions
and if you should reread the manual. The answer is that the changes are extensive and we
suggest you read the entire manual to understand the enhancements. The examples are
for the most part unchanged and you can skip these sections if you are a veteran Fast-
Break user. The following list of changes covers upgrades from Version 4 to Version 5.
Some users may be upgrading from a very old version and a section follows to cover up-
grades from Version 2. Note: There wasn’t a Version 3 of Standard FastBreak.
Changes between Version 4 and Version 5
Capability to build market timing systems and signal files.
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We believe this is the most exciting new functionality. This functionality was
developed, in large part, to better trade individual stocks. Over the years we
have found that FastBreak stock trading systems have the potential for fantas-
tic returns, but we have also found that controlling drawdown is a challenge in
bear markets. We have found that even in severe bear markets there will be
stocks that rally strongly, however, these rallies often fail resulting in a whip-
saw trades. We saw the need for market timing signals that would keep the
trading system out of the very worst of markets. There are numerous market
timing signals available but so many of these are not robust and fail the test of
time. Also, we wanted to develop our own signals that met our needs, e.g.,
switches per year, drawdown, markets traded etc.
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One disadvantage of the many market signals available is that they are devel-
oped for a specific index, e.g., S&P 500 Index. Often, there is a divergence in
different stock indexes, i.e., small cap stocks performing well while large cap
stocks are not. FastBreak allows the use to combine multiple indexes (or any
stock, fund, FNU file) into a family. This allows the user to build signals that
stay in a buy mode if any of the indexes are in an uptrend and will only signal
a sell signal if all are in a down trend.
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We have used this capability to build signals for trading diversified mutual
funds and individual stocks. We have also used it to build market sector spe-
cific signals; for example, we have built signals to build trading systems for
energy stocks.
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Signal file building systems can be run like a regular FastBreak trading sys-
tem, except the output is a FastTrack signal file. This signal file can then be
used in a FastBreak trading system or other FastTrack applications.
Rank using Ulcer Performance Index (UPI). This option will tend to purchase high-
UPI funds and produce strategies that have a high UPI equity curve.