This is how to remove lag from moving averages
- Thread starter Bigstuff
- Start date
I'm testing this currently, settings / rules.......
Simplify needed!!!
Envelope 10sma High +0.01% and Low -0.01%, direction to trade and range initially.
Envelope 7Lwma High +0.03% and Low -0.03%, Range to trade along with the 10.
SL can be 7lwma +/-0.03% based of based around the 10.
Need to wait for a direction, sideways = lower odds and lower risk to reward.
Simplify needed!!!
Envelope 10sma High +0.01% and Low -0.01%, direction to trade and range initially.
Envelope 7Lwma High +0.03% and Low -0.03%, Range to trade along with the 10.
SL can be 7lwma +/-0.03% based of based around the 10.
Need to wait for a direction, sideways = lower odds and lower risk to reward.
the stupid, it burns.
Literally lol thx
Here is the 411 on moving averages and lag:
Moving averages are lowpass digital filters. The two types are Finite Impulse Response (FIR) and Infinite Impulse Response IIR). An SMA is a type of FIR filter, and and exponential MA is a type of IIR filter.
Lag is the common name for group delay. Group delay is the time delay of the various sinusoidal components of a signal, and is a function of frequency for each component. This immediately implies that the price time series is being modeled as a complex wave.
There are many ways to reduce group delay (lag) in digital filters, but I will point you to the work of John Ehlers. As always, a caveat. Anything from the world of physics, applied to finance, could be a misapplication of the physics.
Moving averages are lowpass digital filters. The two types are Finite Impulse Response (FIR) and Infinite Impulse Response IIR). An SMA is a type of FIR filter, and and exponential MA is a type of IIR filter.
Lag is the common name for group delay. Group delay is the time delay of the various sinusoidal components of a signal, and is a function of frequency for each component. This immediately implies that the price time series is being modeled as a complex wave.
There are many ways to reduce group delay (lag) in digital filters, but I will point you to the work of John Ehlers. As always, a caveat. Anything from the world of physics, applied to finance, could be a misapplication of the physics.
No more lag.Definition of group delay (lag):
The negative derivative of phase with respect to frequency. Again, this implies that price is a complex wave with many different frequency component waves. It's just a model remember and thus the caveat.
