The KAMA Indicator Calculation | How and why it works | Kaufman Adaptive Moving Average
This episode looks at how and why the calculation of the Kaufman Adaptive Moving Average KAMA indicator works. This helps with an understanding of the advantages that adaptive indicators like this can have over standard static indicators.
Because the formula uses the Kaufman Efficiency Ratio to adjust its parameters this means it can help to negate the effects of noise on trend following systems. The Kaufman adaptive moving average does this using an ingenious technique to speed up or slow down the moving average periods, based on what's required to avoid the effects of noise.
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This is Episode 100 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 20 of the 'Market Noise' mini-series.
Video Contents:
00:00 Introduction
00:51 Why Darwinex?
01:46 The KAMA Indicator Calculation
04:16 The Smoothing Constant
04:58 The Efficiency Ratio
07:18 Behaviour of KAMA
07:37 Adjusting the Kaufman Adaptive Moving Average
10:03 Noise Indicator Package
10:48 Summary
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: www.darwinex.com/legal/risk-d...
Пікірлер: 22
Congratulations on 100 episodes!
@TradeLikeAMachine
2 жыл бұрын
Many thanks Don. :)
Wow, time flies when you're in good company. Congratulations on your milestone achieved!
Congratulations!! Awesome video once again, thanks Martyn and Darwinex
Congratulations for the 100 episodes and thanks a lot as well! Your KZread content ist pure Gold, Martyn!
Very interesting. Waiting for that next video. And congrats on your 100 videos. I am sure we will see at least the number 200.
Congratz on 100 Episodes of great content! - You really DO ROCK, Martyn! - :) - Also thanx to Darwinex for making this possible!
Congratulations on the milestone. Great work!
Muchas gracias por tus enseñanzas. Thank you very much for your teachings. from Colombia.
Love KAMA
Hey for an idea...I found out something known as VAMA(volatility adjusted moving average)...For the volatility series that'd be coming up... A comparison will open new concepts and conclusions.
@TradeLikeAMachine
2 жыл бұрын
Consider it done :) Thanks for the suggestion
@Anyone.c
2 жыл бұрын
@@TradeLikeAMachine you are a gem!⭐
@Anyone.c
2 жыл бұрын
@@TradeLikeAMachine one more question... After considering instantaneous noise, what to combine to with it to strengthen the assumption that 1) mean reversion or 2) trend will continue for a finite time after we enter a trade. Like how to increase those chances.
So basically, its a low pass filter where its cut off frequency is anchored on noise measurement.
Could you make a list with all these episodes?
What's the difference between the KAMA and the KijunSen? ( They look very similar! )
Sir I am using this indicator please let me what should the exact time period should use for this moving average??
I am not seeing the playlist for this one. I am piecing them together in the videos section. Am I missing something?
@Darwinexchange
2 жыл бұрын
Hi Jeroen. You can find the playlist here: kzread.info/head/PLv-cA-4O3y97cGBQ3pkD-ZtN9jNqMvpod
Please post the mql4 version 🙏
@miguelangellopez4395
2 жыл бұрын
Once you try MT5 and the things you can do with MQL5, you're never gonna go back to MT4.