Kaufman Trend Strategy

# ✅ Kaufman Trend Strategy – Full Description (Script Publishing Version)

**Kaufman Trend Strategy** is a dynamic trend-following strategy based on Kaufman Filter theory.
It detects real-time trend momentum, reduces noise, and aims to enhance entry accuracy while optimizing risk.

⚠️ _For educational and research purposes only. Past performance does not guarantee future results._

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## 🎯 Strategy Objective

- Smooth price noise using Kaufman Filter smoothing
- Detect the strength and direction of trends with a normalized oscillator
- Manage profits using multi-stage take-profits and adaptive ATR stop-loss logic

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## ✨ Key Features

- **Kaufman Filter Trend Detection**
Extracts directional signal using a state space model.

- **Multi-Stage Profit-Taking**
Automatically takes partial profits based on color changes and zero-cross events.

- **ATR-Based Volatility Stops**
Stops adjust based on swing highs/lows and current market volatility.

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## 📊 Entry & Exit Logic

**Long Entry**
- `trend_strength ≥ 60`
- Green trend signal
- Price above the Kaufman average

**Short Entry**
- `trend_strength ≤ -60`
- Red trend signal
- Price below the Kaufman average

**Exit (Long/Short)**
- Blue trend color → TP1 (50%)
- Oscillator crosses 0 → TP2 (25%)
- Trend weakens → Final exit (25%)
- ATR + swing-based stop loss

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## 💰 Risk Management

- Initial capital: `$3,000`
- Order size: `$100` per trade (realistic, low-risk sizing)
- Commission: `0.002%`
- Slippage: `2 ticks`
- Pyramiding: `1` max position
- Estimated risk/trade: `~0.1–0.5%` of equity

> ⚠️ _No trade risks more than 5% of equity. This strategy follows TradingView script publishing rules._

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## ⚙️ Default Parameters

- **1st Take Profit**: 50%
- **2nd Take Profit**: 25%
- **Final Exit**: 25%
- **ATR Period**: 14
- **Swing Lookback**: 10
- **Entry Threshold**: ±60
- **Exit Threshold**: ±40

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## 📅 Backtest Summary

- **Symbol**: USD/JPY
- **Timeframe**: 1H
- **Date Range**: Jan 3, 2022 – Jun 4, 2025
- **Trades**: 924
- **Win Rate**: 41.67%
- **Profit Factor**: 1.108
- **Net Profit**: +$1,659.29 (+54.56%)
- **Max Drawdown**: -$1,419.73 (-31.87%)

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## ✅ Summary

This strategy uses Kaufman filtering to detect market direction with reduced lag and increased smoothness.
It’s built with visual clarity and strong trade management, making it practical for both beginners and advanced users.

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## 📌 Disclaimer

This script is for educational and informational purposes only and should not be considered financial advice.
Use with proper risk controls and always test in a demo environment before live trading.