Trend Following15m CandlesComplexity: Advanced
Kaufman Adaptive Moving Average (KAMA) Trend
Dynamically adapts smoothing speed based on market noise; speeds up during rapid price trends and flattens during chop, eliminating whipsaws.
Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.
Mathematical Logic & Formula Formulation
Efficiency Ratio (ER) = Direction / Volatility; KAMA_t = KAMA_{t-1} + SC * (Price - KAMA_{t-1})
Deterministic Entry Rules
Long Entry (BUY)
- ✓Price crosses above KAMA line and KAMA slope turns positive with RSI > 50.
Short Entry (SELL)
- ✓Price crosses below KAMA line and KAMA slope turns negative with RSI < 50.
Exit Criteria & Stop Loss Protection
Initial Stop Loss1.0% from entry price or 1.5x ATR.
Target ProfitOpen trailing target using KAMA line as dynamic stop.
Risk/Reward Expectancy1 : 3.0
Strategy Configuration Specs
Market Segment:NSE Large Cap Stocks & Index Futures
Candle Timeframe:15m Candles
Risk-to-Reward Ratio:1 : 3.0
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
KAMA (10, 2, 30)RSI (14)ATR (14)
Risk Management Controls
- •Position size scaled inversely to ATR volatility.
Target Trader Profile:Position traders looking for an intelligent, noise-filtering trend indicator.