The Kaufman Adaptive Moving Average Indicator (KAMA)

The Kaufman Adaptive Moving Average (KAMA) is the obvious choice to consider in terms of adaptive trading indicators for this series on Market Noise. This is because the KAMA uses the Efficiency Ratio - which is a measure of noise - to perform the adaptive adjustment of parameters to best handle market conditions.

Adaptive indicators provide advantages over standard static trading indicators by dynamically and automatically adjusting their parameters, with the sole intention of becoming more effective. The Kaufman Adaptive Moving Average does this based on the Efficiency Ratio, to allow the moving average periods to be adjusted and take maximum advantage of trends in trend-following trading strategies.

Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=mt-atfal-noise-99&utm_campaign=martyn-videos

Follow Darwinex on LinkedIn:
https://www.linkedin.com/company/tradeslide-ventures/

#KAMAIndicator, #KaufmanAdaptiveMovingAverage, #AdaptiveIndicators, #TradingIndicators, #KAMA, #TechnicalIndicators, #EfficiencyRatio, #Noise, #Darwinex

This is Episode 99 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 19 of the 'Market Noise' mini-series.

Video Contents:
00:00 Introduction
00:31 Why Darwinex?
01:21 The Kaufman Adaptive Moving Average (KAMA)
02:22 Why can market noise be problematic?
04:20 Adapting Moving Average Periods
05:22 Adaptive Indicators
06:10 How KAMA adjusts the moving average length
07:02 Example: Comparing KAMA with an EMA
09:59 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: https://www.darwinex.com/legal/risk-disclaimer

Видео The Kaufman Adaptive Moving Average Indicator (KAMA) канала Darwinex