EdgeWare FastBreak Standard Version 5 - Manual (Page 24)

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other screen options. AccuTrack trading parameters will replace the ranking buy and sell
ranking parameters. This will be explained later in this chapter.
Buy & Sell: Long Gain * Short Gain - This option combines a long ranking period gain
with a short ranking period gain by multiplying them together. This method will give
weight to both long term price performance and short term price performance. For ex-
ample, if testing a long period of 40 market days and a short period of 5 market days the
program will first take the ratio of the NAV of the fund today and 40 days ago. Next, the
ratio of the NAV of the fund today and 5 days ago is calculated. The final step is to mul-
tiply these two ratios together. Putting numbers to this example - we will assume a fund
has a current NAV of $18.00, a $17.75 NAV five days ago, and a $17.45 NAV forty days
ago. The long period NAV ratio is: 18.00/17.45=1.0315, and the short period NAV ratio
is: 18.00/17.75=1.014. Multiplying these two ratios together: 1.0315 X 1.014= 1.046.
This is done for each fund, and the multiplied ratio results are used to do a ranking with
the fund having the largest value as the #1 fund.
When this option is selected four new boxes appear on the screen, Min Long, Max Long,
Min Short, and Max Short. This allows a range of long and short combinations to be
tested. This will be explained shortly.
Buy & Sell: Long Rank * Short Rank - This option also combines long and short term
price performance to rank funds. A ranking of the family is made over a long look-back
period and then a second ranking is made over a short look-back period. The actual rank-
ing positions are multiplied together, and this final result is used to make a third and final
ranking. For example, a fund may be ranked number 5 in the trading family over the past
40 market days and ranked number 8 over the past 5 market days. The result of multiply-
ing these two ranking positions together is: 5 X 8 = 40. As you can see, the lower the
ranking value the smaller the final result, therefore, when the third and final ranking is
performed on this multiplication of two ranking periods the fund with the LOWEST
value is ranked number one.
When this option is selected four new boxes appear on the screen, Min Long, Max Long,
Min Short, and Max Short. This allows a range of long and short combinations to be
tested.
Buy & Sell: Buy and Sell using UPI – Calculation of Ulcer Performance Index (UPI) is
explained in the Appendix. Choosing this option ranks funds based on a short term UPI
value. This usually results in buying funds that have a smoother equity curve
Buy & Sell: Short EMA/Long EMA - This option creates a ratio of the Short Exponen-
tial Moving Average (EMA) divided by a Long EMA. If a fund is starting to move up,
the short EMA will be a larger number than the long EMA. The ratio for all the funds is
then ranked from largest to smallest. When a fund starts to turn down the ratio will be-
come smaller.