It holds the (ignition) timing to what you set it to through the RPM band. Now, how it does it is beyond me at this point. I'm still playing in the minor's here too. You'd have to call a tech and ask about the inner workings of the translator. But it definately does adjust it, as I can watch it on the sensor monitor screen as I accelerate through the RPM band. That's why I like the 2nd Gen so much as I don't have to hook up a laptop every time I want to adjust something. That's just plain annoying IMO. In conjuction with a wideband, IAT and BARO it does most of the work for you on-the-fly. You set the parameters, and it does the rest. But it also makes critical adjustments on-the-fly like AFR. That's the ticket with this unit. Think about it, you set the AFR to your desired range, and it keeps it there plus or minus 5%. There is a reason why this unit has grown in popularity. Answer: it's powerful, user friendly, and cheaper than your average stand-a-lone.