Kalman Filter Indicator


What is the Kalman Filter Indicator?

Kalman Filter indicator  is a trend-following VertexFX client side VTL indicator that uses the concept of digital filter based on velocity (speed in price changes), and error correction (eliminating whipsaws and noise).

How Kalman Filter works?

In the beginning we will calculate the change in price. This value is smoothed and sharpened with K and SHARPNESS factors. The velocity is calculated based on the threshold and the smoothed values. When the velocity is positive (bullish), the indicator turns BLUE, where as when the velocity is negative, the indicator turns RED.
BUY - Place Buy position when Kalman Filter indicator turns Blue. Do not open Buy trade if candle gaps up and closes above the indicator. 
SELL - Place Sell position when Kalman Filter indicator turns Red. Do not open Sell trade if candle gaps down and closes below the indicator.

To use Kalman indicator download it from here, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts

Then right click on the tree and select refresh or restart your client station and you will find under VTL local scripts in your client terminal.

You can check this video that will explain to you how Kalman Filter Indicator works:



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