EdgeWare FastBreak Standard Version 6.2 - Manual (Page 7)

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trendlines can be used to determine if a downward move has ended and it is safe to buy,
i.e., Buy filter. The vast majority of trendline users use a manual method to draw the
trendline on a paper chart or a computer screen. Programming a computer to calculate a
trendline that a human brain can draw in a few seconds is a daunting task; however, there
is a tendency when manually drawing trendlines to “force” the line to other expectations.
A mathematical algorithm is not subject to such expectations, but at the same time cannot
“see” other potential complications and complexities.
Adding trendlines to the Buy Filter and Stops required changes in the layout to three tabs:
Strategy, Stop Loss, and Buy Filter tabs, but you should quickly become comfortable with
the new layout.
Details of the Trendline algorithm is provided in the Appendix A.
NOTE: The algorithm to determine trendlines is very computer time intensive. If you
are using a very large trading family you will notice a long delay to evaluate the strat-
egy. More about this in the Appendix A discussion.
Changes in Version 5
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.
o 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