EdgeWare FastBreak Pro Version 6.2 - Manual (Page 10)

10
 Buy filter using a short/long Exponential Moving Average (EMA) crossover. This is
similar to the current EMA Buy filter except that the fund NAV is smoothed with a
short term EMA.
 The next four enhancements are all similar in that they allow the user to modify stop
or buy filter options according to market conditions or a user defined input file. The
modification is triggered when an index (or any user defined fund or FNU file) drops
below its user defined EMA line. For example, if the S&P is used as the index then
the parameters are not modified as long as the index stays above a user defined EMA
line. If the S&P falls below its EMA line then a factor is applied to the standard
value. A simple example is that when the market is in a strong uptrend high beta
funds may be a good investment option. However, when the market is in a downturn
or trading market it may be prudent to purchase low beta funds.
o Adjust the Trailing Stop Loss value based on market conditions or external
file input.
o Adjust the EMA Stop value based on market conditions or external file input.
o Adjust the Beta Buy filter value based on market conditions or external file
input.
o Adjust the EMA Buy filter value based on market conditions or external file
input
 Beta buy filter can now be a non-correlated beta as an option. Beta is the ratio of the
volatility of a fund divided by the volatility of an index (typically the S&P 500),
multiplied by a correlation value between the fund and the index. If a fund has a low
correlation to the index it can have a low beta but be a very volatile fund.
An
example would be a gold fund. Gold funds have a low or even negative market
correlation and yet are very volatile. Filtering on standard beta may not filter out a
gold fund. Using the non-correlated beta filter allows a user to mix a wide range of
fund types including those that may not have a high market correlation value, e.g.,
bonds, international etc., in a trading family and have the ability to filter those with
high volatility.
 Improved the BOSS stop option to be more effective with some ranking methods.
 Ability to begin the effectiveness of a stop option later than the first day. Previous
versions required the stop to be in effect on the first day a fund was purchased. Some
users have the requirement to hold a fund for a fixed number of days after purchase.
They can now start a stop after this number of days.
 Ability to search the Buy and Sell ranking list by fund symbol. Some users have very
large trading families and it is difficult to locate a particular issue in the ranking list.
This option allows the user to do an efficient search for the fund symbol.
Additional Changes between Version 3 and Version 5