Aurora KAMA | KAMA Adaptive Trend Strategy
Aurora KAMA Trend is a trend-following strategy built around Kaufman's Adaptive Moving Average (KAMA) — a moving average that speeds up when the market is trending cleanly and slows down when it's choppy, instead of using a fixed lookback like a standard SMA/EMA.
How it works:
Visuals:
Tips:
How it works:
- Core signal: KAMA's slope determines direction. The strategy requires KAMA to be persistently rising (for longs) or falling (for shorts) over a configurable number of bars, filtering out minor wiggles near turning points.
- Trend filter: An optional long-term SMA only allows longs above it and shorts below it, keeping trades aligned with the dominant trend.
- Trade spacing: A cooldown period (in bars) prevents new entries from stacking up too close together during a single volatile move.
- Risk management: An optional fixed percentage stop-loss, plus a trailing stop that only arms after a delay period, giving new positions room to develop before being trailed tightly.
- Direction control: Trade long-only, short-only, or both.
Visuals:
- The KAMA line changes color with trend direction (green/rising, red/falling, gray/flat), with a glowing red/green fill between KAMA and price whose intensity scales with the distance between them.
- The trend SMA is rendered as a layered "glow" line — gold when sloping up, amber when sloping down.
- Entries are marked with simple triangles; exits with small gray X's.
Tips:
- Test on daily bars for liquid, trending instruments (e.g. BTCUSD, ES1!, SPY, QQQ) — KAMA needs a real trend to earn its keep.
- Widen the rising/falling persistence inputs if you're getting whipsawed near turning points.
- Turn off the SMA filter if you want KAMA to trade purely on its own slope, independent of the broader trend.
- The trailing stop's delay is there to stop you from getting stopped out on entry noise — tighten it only if you're trading a slower timeframe.
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Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.