EdgeWare FastBreak Pro Version 6.2 User Manual
Page 10
10
Buy filter using a short/long Exponential Moving Average (EMA) crossover. This is
similar to the current EMA Buy filter except that the fund NAV is smoothed with a
short term EMA.
The next four enhancements are all similar in that they allow the user to modify stop
or buy filter options according to market conditions or a user defined input file. The
modification is triggered when an index (or any user defined fund or FNU file) drops
below its user defined EMA line. For example, if the S&P is used as the index then
the parameters are not modified as long as the index stays above a user defined EMA
line. If the S&P falls below its EMA line then a factor is applied to the standard
value. A simple example is that when the market is in a strong uptrend high beta
funds may be a good investment option. However, when the market is in a downturn
or trading market it may be prudent to purchase low beta funds.
o
Adjust the Trailing Stop Loss value based on market conditions or external
file input.
o
Adjust the EMA Stop value based on market conditions or external file input.
o
Adjust the Beta Buy filter value based on market conditions or external file
input.
o
Adjust the EMA Buy filter value based on market conditions or external file
input
Beta buy filter can now be a non-correlated beta as an option. Beta is the ratio of the
volatility of a fund divided by the volatility of an index (typically the S&P 500),
multiplied by a correlation value between the fund and the index. If a fund has a low
correlation to the index it can have a low beta but be a very volatile fund.
An
example would be a gold fund. Gold funds have a low or even negative market
correlation and yet are very volatile. Filtering on standard beta may not filter out a
gold fund. Using the non-correlated beta filter allows a user to mix a wide range of
fund types including those that may not have a high market correlation value, e.g.,
bonds, international etc., in a trading family and have the ability to filter those with
high volatility.
Improved the BOSS stop option to be more effective with some ranking methods.
Ability to begin the effectiveness of a stop option later than the first day. Previous
versions required the stop to be in effect on the first day a fund was purchased. Some
users have the requirement to hold a fund for a fixed number of days after purchase.
They can now start a stop after this number of days.
Ability to search the Buy and Sell ranking list by fund symbol. Some users have very
large trading families and it is difficult to locate a particular issue in the ranking list.
This option allows the user to do an efficient search for the fund symbol.
Additional Changes between Version 3 and Version 5