EdgeWare FastBreak Standard Version 6.2 - Manual (Page 33)

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FastTrack each evening and then run FastBreak. If a trade signal is given, the trade
would take place at tomorrow’s closing price when using mutual funds. This would be a
1 day delay. However, if the investor is trading stocks or ETFs then the investor may de-
termine that tomorrow’s 10:00 am trading price may be close to today’s closing price.
FastBreak considers this a 0 day delay. Note: FastBreak uses the FastTrack data base
which contains ONLY closing prices. Therefore, FastBreak has no actual knowledge
of the trading prices other than daily close. Using the 0 delay is an estimation, and it
does not change the actual day that the trades are made.
FastBreak will only support delays of zero or one market day.
Top %
This value determines when to sell a fund or continue to hold. The value input is the per-
cent of all funds available in the trading family that a held fund needs to sustain in order
to continue to be held. For example, assume a trading family containing 28 funds, and
each day all the funds are ranked over some time period. The funds are ranked in order of
strongest to weakest. If Top % is set to 50, then FastBreak will continue to hold the fund
while it is in position 1-14 (Top 50%) in the rank list. If the fund falls in the range of 15
– 28, it will be sold. If the trading family contains 30 funds, but only 24 are available
early in the testing period, Top% is applied to 24 during that early time period. See Fast-
Break Calculation Details chapter for additional information.
# funds
This is simply the number of funds the investor wants to hold at any given time. Adding
additional funds to a strategy usually hurts return performance, but can decrease volatility
and reduce drawdown.
Use Log Trendline
Trendline generally come in two “flavors” e.g., logarithmic or arithmetic, and FastBreak
has both available. There are advantages and disadvantages to each. Logarithmic are
generally recommended, but see FastTrack Help for more information. If you check the
Use Log Trendline box then FastBreak will use logarithmic trendlines for BOTH the
Trendline Buy Filter and the Trendline Sell Stop options.