KAMA Kalman Trend Entries with Market Structure Confirmation

Summary

This strategy combines an adaptive KAMA smoother with a Kalman filter and price structure signals labeled break of structure and change of character. Its inputs allow traders to set the smoothing behavior, pivot length, whether breaks are confirmed by closes or wicks, and how recent structure signals must align with the smoother for entry confirmation. It also offers separate long and short risk to reward settings and structure, ATR, or percentage based stop choices.

The visible configuration describes a long and short strategy with optional exits on opposite signals, a limited backtest window, and chart annotations for signals and trade levels. It specifies equity based sizing, no pyramiding, zero commission, and slippage in its strategy settings. The supplied excerpt ends before the calculations and order rules, so it does not establish how signals are computed in detail or provide any performance evidence. Results would depend on parameter choices, market, timeframe, and realistic trading costs.

Key ideas

• The strategy pairs KAMA and Kalman smoothing with price structure confirmation.
• Breaks can be confirmed using closing prices or wicks.
• Entry rules can require either structure event or recent agreement between structure and the smoother.
• Stops can be based on structure, ATR, or a percentage, with separate long and short reward ratios.
• The excerpt provides configuration details but no performance results or full entry logic.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.