EdgeWare FastBreak Standard Version 5 - Manual (Page 7)

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velop our own signals that met our needs, e.g., switches per year, draw-
down, markets traded etc.
o One disadvantage of the many market signals available is that they are de-
veloped for a specific index, e.g., S&P 500 Index. Often, there is a diver-
gence in different stock indexes, i.e., small cap stocks performing well
while large cap stocks are not. FastBreak allows the use to combine mul-
tiple 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.
o 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
specific signals; for example, we have built signals to build trading sys-
tems for energy stocks.
o Signal file building systems can be run like a regular FastBreak trading
system, except the output is a FastTrack signal file. This signal file can
then be used in a FastBreak trading system or other FastTrack applica-
tions.
ƒ 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.
ƒ 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.
ƒ 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 integer (whole) number and more than one fund could have the same
value.
ƒ Removed the Families/Individual option on the Funds/Index tab. This option was
never very useful.
ƒ 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
common 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 difference 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 al-
ways try to buy a top ranked fund that meets your buying criteria. The fund sold
must meet your minimum holding period value. This is now very similar to set-
ting the top % to zero percent. 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.