EdgeWare FastGraph Version 3 - Manual (Page 51)

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This graph needs some explanation. This graph indicates the best results are obtained
when a Buy is made when any 3 OR MORE signals are on a buy. A sell is made when
only 2, 3, 4, 5 OR FEWER signals remain on a buy. At first this may not make sense, but
remember FastGraph looks at the direction of the most recent change in the number of
signals in the market. The above graph has the best results centered about the point 3/3.
This means that the best results were obtained when 3 or more signals were a Buy (Buy
when going from 2 to 3 signals on a Buy), and the market was Sold when 3 or fewer sig-
nals were on a Buy (Sell when 3 or fewer signals were on a buy with the last change in
direction is a sell signal). Here is an example of how a series of trades would look as dif-
ferent signals go in and out of the market:
Date
Number of Signals on a Buy Position
2/10/90
2 on sell
2/11/90 3 Buy
2/17/90 4 on buy
2/18/90 5 on buy
4/11/90 3 Sell
Notice that the same number of signals (3) on a buy is used for both Buying and Selling.
The difference is the direction of the last change (go from 2 to 3 to buy and go from 5 to
3 to sell).
Now that we have determined a specific strategy we can create an FNU file that Fast-
Track can use to display the equity curve for this strategy. Enter the optimum parameters
in the Buy and Sell Ranges: