Trading with Microsoft Excel (spreadsheet available below)
WHY you might USE THE KAMA (Kaufman’s Adaptive Moving Average)
Among the many trading entry signals, for long or short positions, there is the ever present variety of moving averages, simple, exponential, volume-weighted, doubled, tripled, and adaptive or variable. Which to use?
Trade the emini-S&P in any way you like, trend follower, swing trader, breakout trader, whatever, but WE have found that we like short term to medium term trading, so that we can have a monthly income (!) with approximately 10 trades a month, and 60% win rate, and thus we can fight against either the aggressive tension or the bountiful boredom (whichever the market offers us) by trading successfully and artfully. We will drop clues like Hansel and Gretel little by little as we continue our discussion.
Let us offer the following: 1) you must slow down the data stream and yet keep the rhythms visible, because those rhythms, those ups and downs are tradeable. CONCLUSION: no EOD data for us. We use 35 minute price data.
“Patience gives you choices. Choices give you power.”
2) you must also concede that predicting the direction of the market is a fool’s errand. No matter how excellent your Elliott analysis is. No matter how decisive your double e.m.a. system is, you CAN NOT predict the direction of the market (especially if you WANT to see the ups and downs and LIKE to follow the rhythms of the prices in order to make a living). End of Day data takes away all the ups and downs of the short-term fighting market forces. Therefore, we FOLLOW the market, by using a short term to medium term system (using intra-day price data and a short term moving average as a directional indicator).
3) First, use Kaufman’s Adaptive Moving Average (KAMA) to slow down your moving average lines and to also hug the prices closely and with adaptability. It is adaptable. It adjusts. (KAMA Setting is 10-2-30 which is standard.)
4) Second, take a 24-29 bar simple moving average (s.m.a.) of the above KAMA and let that be your Directional Signal/ Indicator.
KAMA DOWNLOAD IS BELOW (just below this):…….. (no macros, no VBA)
download excel file here: (no macros, no VBA)
That’s all for now, folks!
contact us at:
therivertradingsystem@gmail.com
eminiways 
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