EdgeWare FastBreak Standard Version 5 - Manual (Page 27)

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When this option is selected, FastBreak creates an “inverse” fund for each fund in the
trading family. For example, if the real fund is down 2% one day, the inverse fund is up
2%. This inverse relationship is calculated for each day in the data base. All perform-
ance data will be created with the assumption that a “short position” is held in the fund.
Set sell rank = buy rank
If this box is checked the number of days used for a buy ranking period is also used for
the sell rank period. Notice that when this box is selected the “Sell min” and “Sell max”
selection boxes are not available because they become meaningless.
Breakout Optimization Method (BOOM)
This is a very powerful proprietary option available only in FastBreak. The exact process
of how the option works is not fully disclosed at this time because of the proprietary na-
ture. BOOM often allows a strategy to purchase a fund much earlier in an up-trend
breakout than would be captured by standard ranking methods. Note: The BOOM option
will not work with all ranking strategies. See the table at the end of this chapter.
This option is very effective and we recommend that you consider testing with the option.
There are three parameters required. From left to right we will call them Parameter 1, 2
and 3. Note: This option was designed with the intention that the optimizer in Fast-
Break Pro would find optimum parameter values. The method used in BOOM has lit-
tle intuitive meaning, and suggesting reasonable values without the benefit of the opti-
mizer in FastBreak Pro is very difficult. Here are some suggestions. Value for Parame-
ter 1 is 30, Parameter 2 is 5 and Parameter 3 is 1. If you find that a trading system is buy-
ing a fund too early on a breakout and you are buying too many false rallies, consider in-
creasing Parameter 2. If rallies are purchased too late then consider decreasing Parameter
2.
Note: The next several parameter boxes do not have as much significance for users of
FastBreak Pro as they do for users of the Standard version. The genetic algorithm
optimizer in FastBreak Pro will determine values for all trading system parameters,
including the ranking parameters. However, FastBreak Pro users can use the follow-
ing parameter options to “fine tune” the ranking periods in their trading systems. See
FastBreak Pro manual for more details.