KAMA Trend Strategy with Adaptive Position Sizing and Deviation Filters

Summary

This document introduces a KAMA-based trading script with configurable trade direction and three trade behaviors: holding through neutral conditions, exiting when the trend state turns neutral, or scaling position size adaptively. Its state scheme classifies conditions using KAMA direction and acceleration together with whether price is above or below KAMA. A deviation gate can block entries when price has moved too far from KAMA, treated as fair value.

The visible inputs describe adaptive trimming as price extends in standard-deviation units, a minimum position floor, conditions for reloading, a shift to thresholds in stronger trends, and a cooldown between adjustments. KAMA efficiency ratio and fast and slow smoothing periods are also configurable. The supplied document cuts off partway through the input definitions, so the later implementation, full entry and exit rules, and any test results are unavailable. It therefore offers a design outline, not evidence of profitability or a complete strategy specification.

Key ideas

• The script classifies trend state using KAMA behavior and price location relative to KAMA.
• It offers hold, neutral-state exit, and adaptive position management modes.
• A deviation gate is intended to prevent entries after price has stretched too far from KAMA.
• Adaptive sizing settings include trimming, a position floor, reload conditions, and action cooldowns.
• The excerpt is incomplete and provides no performance evidence.

Tags

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