Karobein Oscillator

22 nov 2018

Developed by Emily Karobein, the Karobein oscillator is an oscillator that aim to rescale smoothed values with more reactivity in a range of (0,1)

Calculation

The scaling method is similar to the one used in a kalman filter for the kalman gain.

We first average the up/downs x, those calculations are similar to the ones used for calculating the average gain/loss in the relative strength index.

a = ema(src < src[1] ? x : 0,length)
b = ema(src > src[1] ? x : 0,length)

where src is a exponential moving average of length period and x is src/src[1] in the standard calculations, but anything else can be used as long as x > 0.

Then we rescale the results.

c = x/(x + b)
d = 2*(x/(x + c*a)) - 1

How To Use

It is better to use centerline-cross/breakouts/signal line.

In general when we use something smooth as input in oscillators, breakouts are better than reversals, you can see this with the stochastic and rsi.

So a simple approach could be buying when crossing over 0.8 and selling when crossing under 0.2.

Here is the balance of a strategy using those conditions, length = 50.



20 trades have been mades since the 29 oct we made 341 pips with eur/usd, of course this backtest was made during good trends period,
this result is not representative of how the strategy work with other conditions/markets.


For any questions/suggestions feel free to contact me