JMA + A2RTS + Alerts

The JMA + A2RTS + Alerts indicator provides a trend-following system that combines the Jurik Moving Average (JMA) with the Adaptive Autonomous Recursive Trailing Stop (A2RTS) to help traders identify trend entries and manage exits effectively.

Usage

The tool is designed to identify trending environments and provide dynamic trailing stop-loss levels. The JMA acts as the primary trend filter, while the A2RTS provides a structural trailing stop line.

• Bullish Entry: Occurs when the JMA changes color from red (bearish) to green (bullish). Users often look for the A2RTS (blue line) to be positioned below price as a trailing stop.
• Bearish Entry: Occurs when the JMA changes color from green (bullish) to red (bearish). Users often look for the A2RTS to be positioned above price as a trailing stop.
• Exits: A trade can be exited when the JMA reverses its color or when the price crosses the A2RTS trailing stop line.

Details

This script integrates two distinct algorithmic concepts:

1. Jurik Moving Average (JMA): Known for its low lag and high smoothness, it reacts quickly to price changes while minimizing noise. It uses "Phase" and "Power" parameters to adjust its responsiveness.
2. Adaptive Autonomous Recursive Trailing Stop (A2RTS): Developed by Alex Grover, this component uses an efficiency ratio and recursive smoothing to create a dynamic boundary. It adapts to market volatility, tightening during strong moves and widening during consolidation.

Settings

JMA

• Length: The lookback period for the JMA calculation. Higher values result in a smoother, slower line.
• Phase: Adjusts the compression of the average. Ranges from -100 to 100.
• Power: Controls the degree of the moving average's curvature.
• Source: The price input used for JMA calculations (default is Close).
• Highlight Movements?: Toggles the color-coding of the JMA line based on its slope.

A2RTS

• A2RTS Length: The period used to calculate the efficiency ratio for the trailing stop.
• A2RTS Gamma: A multiplier that affects the distance of the trailing stop from the price.
• A2RTS Source: The price input used for the A2RTS calculation.

FAQ

How do I use the alerts?

The script includes alerts for JMA color changes and A2RTS flips. You can also use the combined alerts which trigger when the JMA aligns with the current A2RTS trend direction.

What is the difference between JMA and a standard EMA?

The JMA is designed to have significantly less lag than a standard EMA while maintaining a smoother appearance, making it more effective for identifying early trend reversals.

How do I access JMA + A2RTS + Alerts?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.