newdigital

Originally Posted by Chris1303

Updated results for Digital Martingale 2 EA:

EA made 74.4 pips (or 9.79$) for this week

• H1 timeframe
• Alpari UK broker

Trading since 26th of May 2014

Good Start.

Pairs that was not mentioned did not open any trades.

What is the filter?
In signal processing, the function of a filter is to remove unwanted parts of the signal, such as random noise, or to extract useful parts of the signal, such as the components lying within a certain frequency range.

Ok. Why digital?
A digital filter uses a digital processor to perform numerical calculations on sampled values of the signal. The processor may be a general-purpose computer such as a PC, or a specialized DSP (Digital Signal Processor) chip.

Too complicated. Do I know the filter?
Yes of course:
- Simple Moving Average (SMA) is a average value of a last sequence in series of data. It is an example DF with Finite Impulse Response FIR also known as non-recursive filters.
- Triangle and Weighted Moving Average are calculated as SMA but elements in the series have different weights. Triangle (TMA) has maximum weight in the middle. Weighted (WMA) has minimum weights in the middle.
- Exponential MA is calculated as: Y[i] = Y[i-1] + (X[i] - Y[i-1]) * Alpha Where X is input data. Y is output data. Alpha is a coefficient that defines the smoothness of the indicator line. This is an example of DF as IIR filter.
- Momentum, ROC, MACD, TRIX and others - digital filters as well.

So what we are talking about! We know those filters!
Most of indicators used in Technical Analysis (TA) are regular linear digital filters (DF). Practically all of them have inside themselves moving averages parts (which are low pass filters). We can say now that the DF is a part of any TA. DFs are well investigated. There are methods of calculating of DF by calculatios, by weights coefficients or by the impulse response.

What is AT&CF?
It is Adaptive Trend & Cycles Following indicators.

What is FATL and SATL?

FATL (Fast Adaptive Trend Line) - is formed with the digital filter of the low frequency LPF-1. Filter LPF-1 serves to suppress noises of high frequency and market cycles with very short periods of oscillation that can be considered as noise.

SATL (Slow Adaptive Trend Line) - is formed with the digital filter of the low frequency LPF-2. Filter LPF-2 serves to suppress noises and market cycles with longer periods of oscillation.

Filters of low frequency LPF1 and LPF2 provide attenuation in the stop band with no less than 40 dB and absolutely don't distort the amplitude and phase of entry discontinuous price series in the pass band (bandwidth).

These properties of the digital filters provide significantly improved (in comparison with simple moving average) noise suppression that in its turn allows reducing sharply the probability of appearance "false" signals for purchase and sell.

There are no analogues to FATL and SATL among widely known technical instruments. These are not moving "average", but just the adaptive lines estimates of the short term and long-term trends. Unlike moving "average", FATL and SATL have no any phase delay with regard to current prices.