EdgeWare FastBreak Standard Version 5 - Manual (Page 31)

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User Min Hold
This is the minimum number of days to hold a fund that has been purchased. Some funds
have short term trading fees if the funds are held less than a prescribed minimum number
of days. Setting Min hold to this number will force the trading strategy to hold the fund
for at least this minimum number and avoid the trading fee. Note: User Min hold is in
calendar days not market days.
There are two situations when Min hold will be violated. First, if a signal file is used and
a signal is given to sell, all held funds will be sold into the money market fund even if the
funds have been held less than the minimum number of days. Second, if a fund hits one
of the stop loss functions, the fund will be sold even if held less than the minimum num-
ber of days.
STRF Min hold
This screen option allows you to select the Short Term Redemption Fee (STRF) mini-
mum holding period. If the funds in your family apply a redemption fee if the fund is
traded within a minimum number of days, then use this option. For example, the Fidelity
Select funds have a 0.75% fee if traded within 30 days.
Short loss
This is the percent cost if a fund is sold before it is held the “STRF Min hold” number of
days. For example, some funds have a transaction fee of 0.75% if held less than 30 days.
FastBreak will subtract this fee from a sell trade for a fund that is held less than the
“STRF Min hold” period. The one exception is for the money market fund where Short
loss never applies. Short loss is input as a positive number.
Delay .
The typical FastBreak user will update FastTrack each evening and then run FastBreak.
If a trade signal is given, the trade would take place at tomorrow’s closing price. This
would be a 1 day delay. However, if the investor is trading funds that have hourly pric-
ing such as the Fidelity Select Funds, then the investor may determine that tomorrow’s
10:00 am trading price may be close to today’s closing price. FastBreak considers this a
0 day delay. Note: FastBreak uses the FastTrack data base which contains ONLY
closing prices. Therefore, FastBreak has no actual knowledge of the hourly trading