OPEN-SOURCE SCRIPT
Kinetic Kalman Breakout
🚀 Kinetic Kalman Breakout
Kinetic Kalman Breakout (KKB) is a high-tech trend-following strategy powered by an Adaptive Kalman Filter. Unlike traditional moving averages that suffer from fixed lag, this algorithm utilizes a state-space mathematical model to predict price movement, effectively filtering out market noise while reacting instantly to genuine trend shifts.
🧠 How It Works
The core of the strategy is the Kalman Filter, which dynamically estimates the "true" price of the asset by separating random volatility from the underlying trend. Adaptive volatility bands are then constructed around this line based on the Mean Absolute Error (MAE).
LONG Entry: Triggered when the price closes above the upper band (Volatility Breakout).
SHORT Entry: Triggered when the price closes below the lower band.
The Logic: The strategy operates on an "Always-in-the-Market" principle, flipping the position whenever the trend phase changes. This approach ensures you capture the full meat of large price swings without exiting prematurely.
💎 Optimized for ETH/USDT
This version comes with hard-coded parameters specifically tuned for Ethereum on the 15-minute timeframe. These settings are the result of an extensive backtest covering over 200,000 candles (6+ years of data):
Timeframe: 15 min
Process Noise Settings: Calibrated to capture ETH’s medium-term momentum.
Band Lookback (200): Ensures smooth boundaries and provides a robust shield against "fakeouts."
🛡️ Money Management
Initial Capital: $10,000
Order Size: $1,000 (fixed cash volume for consistent growth).
Commission: 0.05% (pre-calculated for realistic performance metrics).
Kinetic Kalman Breakout (KKB) is a high-tech trend-following strategy powered by an Adaptive Kalman Filter. Unlike traditional moving averages that suffer from fixed lag, this algorithm utilizes a state-space mathematical model to predict price movement, effectively filtering out market noise while reacting instantly to genuine trend shifts.
🧠 How It Works
The core of the strategy is the Kalman Filter, which dynamically estimates the "true" price of the asset by separating random volatility from the underlying trend. Adaptive volatility bands are then constructed around this line based on the Mean Absolute Error (MAE).
LONG Entry: Triggered when the price closes above the upper band (Volatility Breakout).
SHORT Entry: Triggered when the price closes below the lower band.
The Logic: The strategy operates on an "Always-in-the-Market" principle, flipping the position whenever the trend phase changes. This approach ensures you capture the full meat of large price swings without exiting prematurely.
💎 Optimized for ETH/USDT
This version comes with hard-coded parameters specifically tuned for Ethereum on the 15-minute timeframe. These settings are the result of an extensive backtest covering over 200,000 candles (6+ years of data):
Timeframe: 15 min
Process Noise Settings: Calibrated to capture ETH’s medium-term momentum.
Band Lookback (200): Ensures smooth boundaries and provides a robust shield against "fakeouts."
🛡️ Money Management
Initial Capital: $10,000
Order Size: $1,000 (fixed cash volume for consistent growth).
Commission: 0.05% (pre-calculated for realistic performance metrics).
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Professional Trader
Capital Management
Capital Management
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Professional Trader
Capital Management
Capital Management
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.