EdgeWare FastBreak Standard Version 6.2 User Manual
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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.
Rank using Sharpe Ratio. This option will tend to purchase high Sharp Ratio funds
and produce strategies that have a high Sharp Ratio equity curve.
Removed the Long Rank + Short Rank momentum ranking option. This option had
the tendency to give ambiguous ranking order because the value produced was an in-
teger (whole) number and more than one fund could have the same value.
Removed the Families/Individual option on the Funds/Index tab. This option was
never very useful.
Changed the logic in the Harnsberger option. Previously, Harnsberger would only
trigger a sell if you were not holding the top Buy ranked fund. This made sense on
early versions of the program when we didn't have buy filters. Now, it is very com-
mon for you not to hold the #1 Buy ranked fund because of the filters. Also, with
some users having large numbers of funds or stocks in their trading families, the dif-
ference in rate of change between the #1 Buy ranked fund and the Nth Buy ranked
fund may be very small. However, the Nth ranked fund may meet all your buy criteria
when the #1 fund does not. We changed the logic so that it will always try to buy a
top ranked fund that meets your buying criteria. The fund sold must meet your mini-
mum holding period value. This is now very similar to setting the top % to zero per-
cent. One difference is that if more than one fund can be sold on a given day the
Harnsberger option will sell the weakest (as measured by Sell ranking) fund. We now
put an H in the Why Detail file column to indicate a Harnsberger sell.