Intelligent Volume-weighted Moving Average (AI)

2018년 11월 13일

Introduction

This indicator uses machine learning (Artificial Intelligence) to solve a real human problem.

The volume-weighted moving average (VWMA) is one of the most used indicators on the planet, yet no one really knows what pair of volume-weighted moving average lengths works best in combination with each other. A reason for this is because no two VWMA lengths are always going to be the best on every instrument, time-frame, and at any given point in time.

The "Intelligent Volume-weighted Moving Average" solves the moving average problem by adapting the period length to match the most profitable combination of volume-weighted moving averages in real time.


How does the Intelligent Volume-weighted Moving Average work?

The artificial intelligence that operates these moving average lengths was created by an algorithm that tests every single combination across the entire chart history of an instrument for maximum profitability in real-time.

No matter what happens, the combination of these volume-weighted moving averages will be the most profitable.


Can we learn from the Intelligent Volume-weighted Moving Average?

There are many lessons to be learned from the Intelligent VWMA. Most will come with time as it is still a new concept. Adopting the usefulness of this AI will change how we perceive moving averages to work.


Limitations

This indicator does not change what has already been plotted and does not repaint in any way shape or form which means it is excellent for trading in real-time!

Ultimately, there are no limiting factors within the range of combinations that has been programmed. The volume-weighted moving averages will operate normally, but may change lengths in unexpected ways - maybe it knows something we don't?


Thresholds

The range of VWMA lengths is between 5 to 40.
The black crosses can be turned off in the settings panel.


Test this indicator!

I am also publishing tools that can be used to back-test this indicator and understand what period length is currently being used.
There will be many more updates to come so stay tuned!

Updated documentation and access to this indicator can be found at kenzing.com