A Trading Strategy using the Kaufman Adaptive Moving Average (KAMA)

This episode considers Perry Kaufman's own guidance and advice about how to put the KAMA indicator into use in a trading context. This considers the number of periods for the fast and slow-moving average and looks at how this compares to the use of a more typical Exponential Moving Average (EMA).
Although the rationale behind the Kaufman Adaptive moving average is clear, there are a few considerations that you need to be aware of, including the use of a filter/buffer to get maximum value from this technical trading indicator. Traders should robustly backtest any strategy and be confident in its potential before trading in a live account.
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Market Noise Indicator Package for MT5:
This series on market noise has considered the use of a variety of indicators in its explanations and examples. The following MT5 Noise Indicator Package includes:
Efficiency Ratio
Price Density
KAMA (Kaufman Adaptive Moving Average)
github.com/darwinex/advanced-...
#KAMATradingStrategies, #TradingRulesForKAMAIndicator, #KaufmanAdaptiveMovingAverageTrading, #TradingStrategies, #TrendFollowing, #TrendFollowingTradingSystems, #AdaptiveIndicators, #TradingSystems, #TrendFollowingIndicators, #AlgoTrading, #Darwinex
This is Episode 101 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 21 of the 'Market Noise' mini-series.
Video Contents:
00:00 Introduction
00:18 Why Darwinex?
01:07 Trading with the KAMA Indicator
03:01 Comparing KAMA with an EMA
04:42 Kaufman's Advice
07:16 Using a filter with KAMA
08:22 Noise Indicator Package for MT5
09:38 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...

[@hellskreamer]

I can very highly recommend applying a 1 minute kama with a mtf 5 minute kama for rediculously Nice areas of value

[@RightBackInRehab]

Another Great Series Martyn. I honestly can’t believe how quickly you churn these out!
Thank you.

[@seanjohnson7145]

Thanks so much Martyn!!!!!!, great information - I'm reading Kaufman's Trading Systems and Methods thanks to you, really deep reading but your guidance is helping a lot :D

[@alastairferris6184]

Thank you. Awesome as always.

[@tshirtsheaven9403]

I compiled the code myself and saved it as an indicator, damn the kama looks promising son

[@donbangert]

Efficiency Ratio.mq5 and Price Density.mq5 compile under MT4. Just change them to *.mq4

[@RenePatrique]

Great stuff again! - Thank you for the indicators, Martyn! - Much appreciated! - :)

[@milleranalytics]

What a fantastic series.

[@Darwinexchange]

You're a star. Thank you for the feedback :) Martyn

[@sebastiansavulsky614]

Absolute legend!

[@jeroenransijn4933]

Thanks so much! I am curious to learn more about the Arnaud Legoux Moving Average, and how it compares to the KAMA.
Additionally I was curious to hear your take on ADX, and maybe you have a video on this.
Thanks so much for all this content.

[@VisualBRON]

Thanks.

[@ctrodrums]

So you don’t use the closing price of the bar to enter/exit the trade but using the tick value when it crosses kama plus or minus a buffer? Btw awesome content as always.

[@tshirtsheaven9403]

I tried loading the indicators and they dont show for some reason? plus on the download link I dont see the efficiency ratio

[@tshirtsheaven9403]

I have the latest mt5 version installed and the indicators dont show, Ive put them in the right folder and they dont show! any idea or help ?

[@davodrahmani6442]

Hi, I downloaded the KAMA indicator but when I compile it, it has 34 errors. Could you please debug it?