EdgeWare FastBreak Pro Version 6.2 - Manual (Page 24)

24
will not work with all the ranking methods. See the Standard manual for a full
description.
You can force FastBreak Pro not to use the option, to use the option, or allow FastBreak
Pro to optimize whether to use the option.
This option is very effective, and we
recommend that you check the Yes box to always use the option.
The Signal File is not an optimized option. If you select a signal file it is always used.
However, the Market Risk variable is optimized.
FastBreak Pro will try different percent risk values to meet your investment objectives. If
you know that you want to be 100% out of the market on a signal file sell, then put a
range of 0 to 0 in the risk text boxes. This will force strategies to always go to money
market on a signal sell. We recommend that you start with a range of 0 to 0. Note: If
you use a Market Risk other then zero (zero forces all positions to go 100% into money
market, i.e., zero risk) you must select an IS Start Date and OS Start Date that occurs
when your signal is on a Buy. This is because the optimizer assumes that the Balance
funds options are active. See Standard manual for additional details. If you don’t
follow this guidance, the performance values will be somewhat distorted. Also, see the
notes in the Standard manual regarding interpretation of Detail file results when the
Market Risk value is other than zero.
The brokerage STRF minimum holding period, Short Loss and Delay values are set to the
user defined values, and these parameters are described in the standard FastBreak manual.
To have the optimizer determine the number of funds to hold to meet your performance
parameters use the following:
In this example, the optimizer will determine if holding 1, 2, or 3 funds is best. If you
know you want to hold a specific number of funds, put that number in both range boxes.
Note: When optimizing for maximum return, the optimizer will often find strategies
that hold only one fund, or the minimum number of funds you allow. This may not be
the most robust system. See the Chapter on Building better Systems for more advice.