Trading Idea #013 – Kaufman’s Efficiency Ratio 1
For this trading system, I will be using Perry Kaufman’s Efficiency Ratio (ER), an indicator designed to show the ‘trendiness’ of an instrument, or lack of it.
For this trading system, I will be using Perry Kaufman’s Efficiency Ratio (ER), an indicator designed to show the ‘trendiness’ of an instrument, or lack of it.
Several weeks ago, I presented a scalping idea: SAT2021-09 Moderate Scalp 1 . That idea was to take a trade with a small profit target, based on the position of the Kaufman’s Adaptive Moving Average (KAMA) within a bar. This idea is a variation of that idea.
This idea is another mean-reversion system, based on work of Larry Connors and Cesar Alvarez.
This idea is from Technical Analysis of Stocks & Commodities (TASC) magazine’s website, https://traders.com. This is the second in a series of three system ideas that TASC features on their website.
This idea will use a relatively fast Kaufman’s Adaptive Moving Average (KAMA) and a profit target.