EdgeWare FastBreak Pro Version 6.5 - Manual (Page 31)

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a minimum number of calendar days is reached. The option is at the top of the screen
where Stop optimization ranges are set.
There is a single value in the text box. In the above example using 30 would deactivate
ALL stops until 30 days after a fund is purchased. The default value is 1 day, which will
make all activated stops effective on the day the fund is purchased.
Note: A user needs to set the minimum value in the User Min Hold period range to a
similar value. The User Min Hold controls the minimum holding period before a fund
can be sold due to ranking. It should also be noted that MMKT Min Hold controls the
minimum holding period for the money market fund. Most fund companies don’t have
restrictions on money market minimum holding periods. Finally, this feature will not
override a market timing signal sell signal. In other works, a market timing signal will
always be acted upon.
After running the optimizer and saving one or more DFT files, load the DFT file into
FastBreak. Go to the Stop Tab and you will see that the start day of all activated Stops is
set to the user defined value set in the Stop Begin Day box.
Setting Stops
Individual stop loss options can be chosen for consideration along with their ranges.
Checking a box next to a Stop option will tell the optimizer to “try” the stop. That
doesn’t imply that the Stop will be effective or be forced to be used.
Two-period stop losses can be used. This means that a stop function will have one value
during the first period and a second value during the second period. The first period starts
on the day set in Stop Begin Day which was just described. FastBreak Pro can optimize
the day the switch is made to a second period. The Day Range columns are used to
specify a range for FastBreak Pro to try for the switch to the second set of parameters.
For example:
This setup will tell FastBreak Pro to try the trailing stop loss. A Loss % value of between
5% and 20% will be tried starting on the day set in Stop Begin Day. Then, FastBreak
Pro will determine which day, between 10 and 50 (calendar) days, after purchase, to
switch to a second stop loss value. FastBreak assumes that the second stop period, if
selected or used, is available until the position is exited. This two time period option can
be very useful if your mutual fund trading company charges you a fee for short term
trades. For example, many users trade the Fidelity Select funds which have a trading fee
of 0.75% if traded in less than 30 days.
FastBreak Pro may determine that a loose stop
works best during the first 30 days a fund is held, and the stop tightened after the initial
30 days.