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Hello,
> > DEMA is perfectly OK. The same with TEMA, WMA, etc.
> What do you mean "perfectly OK".
> After how many bars the built-in DEMA matches its EMA-equivalent
> described in your DEMA comment in AFL function reference.
Because of numerous requests from users I made EMA working EXACTLY
like in Metastock. It means that first value of EMA is available
after n bars and it is initialized by SIMPLE MOVING AVERAGE of N
bars. Since that point EMA calcualtes in a regular, recursive manner.
(I was writing about this as far as I remember more than one year ago)
DEMA operates in recursive manner from the start taking first
array value as first DEMA value.
Because of that fact DEMA and DEMA re-implemented using EMA
will converge in approximately 2 * length bars.
> I have already posted #38859 with full explanatory codes and gifs
> showing the divergence of DEMA and EMA-equivalent.
> Did you read this message ?
I quickly scanned it.
> Would you apply equally DEMA or EMA-equivalent in a trading system?
After inital setup bars - yes.
> Would you equally rely upon any of these two "equivalent" formulas ?
After inital setup bars - yes.
> Would you trade your money based on DEMA or, equally, on EMA-
> equivalent?
After inital setup bars - yes.
> This would be "perfectly OK"
> If for a certain bar DEMA gives you 9 and the EMA-equivalent gives
> 11, then it is not perfectly OK, I could say it is quite far from any
> reliability idea.
It is perfectly OK from the mathematics point of view.
Built-in DEMA implementation is strictly recursive as shown in the C++ code
I published earlier in #38856 and matches *exactly* formulation described in
Stocks & Commodities V. 12:1 (11-19): Smoothing Data With Faster Moving Averages by Patrick G. Mulloy.
Best regards,
Tomasz Janeczko
amibroker.com
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