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Hi Walter,
The answer to your questions might be in Perry's book: Smarter Trading (Mc
Graw-Hill ISBN: 0-07-034002-1)
pages 133-153.
As far as I understand it SSC stands for Scaled Smoothing Constant
Hope this helps and please keep me posted.
Frans
At 09:50 12-08-98 -0400, you wrote:
>Hi again
>
>I have questions about Kaufman's Adaptive Moving Average which is another
>form of "variable" or "dynamic" formula. I think that it may be more helpful
>in programing the Dynamic Breakout System than a VIDYA calculated with
>standard deviation.
>
>Periods:=Input("Time Periods",1,1000,10); {10 is the lookback period}
>
>Direction:=CLOSE-Ref(CLOSE,-periods); {I don't understand how this part is
>used}
>
>Volatility:=Sum(Abs(CLOSE,1,$)),periods);
>
>ER:=Abs(Direction/Volatility); {ER = Efficiency Ratio ??}
>
>FastSC:=2/(2+1) {2 = 2 EMA which is the fastest MA in the variable average}
> {basic formula is 2/(n+1) ??}
>
>SlowSC:=2/(30+1) {30 = 30 EMA is the slowest MA in the variable average}
>
>SSC:=ER*(FastSC - SlowSC)+SlowSC; {? what does SSC stand for}
>
>Constant:=Pwr(SSC,2); {constant or c = SSC squared??)
>
>AMA:=If
>(Cum(1)=periods+1,Ref(CLOSE,-1)+constant*(CLOSE-Ref(CLOSE,-1)),PREV+constant
>*(CLOSE-PREV));
>
>Any help breaking down this formula further would be appreciated.
>
>Thanks
>
>Walter Lake
>
>
>
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