Adaptive Predictive Stops and Targets

8 Okt 2022

The indicator is an experiment to Predict Stops and 1st target for any liquid security and for any timeframe,

Intro
The indicator is made using Predictive Differential Filter of 2nd Degree
and an Adaptive Filter to generate Signals and define Targets and Stops

An adaptive filter is a system with a linear filter that has a transfer function controlled by variable parameters and a means to adjust those parameters according to an optimisation algorithm. Because of the complexity of the optimisation algorithms, almost all adaptive filters are digital filters. Thus Helping us classify our intent either long side or short side
The indicator use Adaptive Least mean square algorithm, for convergence of the filtered signals into a category of intents, (either buy or sell)

The Other Category of Filter used in the indicator is Predictive Differential Filter, which helps us estimate the acceleration of the prices and levels of significance for targeting and Stops
The Predictive Differential Filters are capable of predicting the next state of the input based on the interaction with a pre-specified number of filters, The prediction helps in minimising the quantisation error and in removing the granular noise which are caused by PCM systems.



How to Use

The logic to use is simple Buy at the High of the Signal Candle and Sell at the Low of the Signal Candle
Book your 50% position on the first target shown (respectively in green and red lines) and Trail the rest of the positions till you reach stop or breakeven!




vice versa for Sell,
Just Sell on the Low of the Signal Candle




What securities and timeframes will it work upon
The system is designed to work over any liquid security over any timeframe,

The Indicator has provisions for Alert

How to request Access
Just Private message me, do not use comment box for requesting access, use it only for constructive comments