FTB-C000335 / Formula component

Adaptive Smoothing Constant

Adaptive Smoothing Constant interpolates between slow and fast smoothing constants using the efficiency ratio and then squares the result.

Also known asKAMA SC

Advanced Formula defined 1 linked topicEvidence-reviewed

Definitions

In plain terms

It controls how much of the current input-minus-state difference updates KAMA at each observation.

Technical

The method freezes ER zero-path handling, fast and slow constants, squaring, bounds, precision, and readiness.

Scope

It changes over time and is not the same as a fixed EMA alpha.

Formula

Adaptive SC = (ER*(Fast SC - Slow SC) + Slow SC)^2
LaTeX: SC_t=[ER_t(SC_f-SC_s)+SC_s]^2
SymbolMeaningUnit
ERefficiency ratioratio
Fast SCfast smoothing constantratio
Slow SCslow smoothing constantratio

Output unit: ratio

Examples

  • A governed lesson uses Adaptive Smoothing Constant only with declared inputs, timing, parameters, and edge-case behavior.

Common misconceptions

  • It changes over time and is not the same as a fixed EMA alpha.

Concept relationships

Prerequisites

Related

Where this concept is used

Evidence and governance

  1. Kaufman Adaptive Moving Average TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: Implementation seeding, readiness, and parameter defaults must be frozen for reproducible parity.

Reviewed by
fintech-builder-batch-006
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.