KAMA Adaptive Trend System (Risk-Managed) — Strategy by RadRik
By RadRik
Performance Metrics
- Author: RadRik
- Symbol: BITSTAMP:BTCUSD
- Timeframe: 1 day
- Net P&L: +1,324,146.01 USD (+2,648.29%)
- Win Rate: 36.0%
- Profit Factor: 16.837
- Max Drawdown: 27,808.49 USD (3.09%)
- Total Trades: 25
Description
OverviewThis script is a professional-grade adaptation of the Kaufman Adaptive Moving Average (KAMA). While standard KAMA scripts focus solely on price smoothing, this version (V5) is designed as a complete trading system with a focus on institutional-style risk management and trend hygiene.How It WorksThe strategy uses a three-layer confirmation process before entering a trade:The Core (KAMA): Tracks price efficiency to identify trend shifts.The Regime Filter: A 200-period SMA ensures you are only trading with the long-term trend (Longs above, Shorts below).Momentum Filter: An RSI check (Midline 50) confirms there is actual strength behind the move.Key FeaturesDynamic Position Sizing: Automatically calculates quantity based on a fixed % of account equity (default 1%).ATR-Based Volatility Stops: Uses a 2.5x ATR multiplier to set hard stop-losses that breathe with market volatility.Smart Alerts: Alerts are programmed to trigger on KAMA Color Changes only. This prevents "alert fatigue" caused by fluctuating filters while keeping you informed of trend flips.How to UseBullish Setup: KAMA turns green, price is > 200 SMA, and RSI > 50.Bearish Setup: KAMA turns red, price is < 200 SMA, and RSI < 50.Settings: You can toggle the "Order Direction" to focus on Long-only or Short-only setups depending on your market bias.CreditsBased on the original KAMA logic by tradedots. Modifications by Gemini Assistant include risk management integration and alert logic optimization.