FTB-C000308 / Formula component

Newest-Heavy Weighting

Newest-Heavy Weighting assigns greater influence to more recent observations than to older observations in the same window.

Also known asrecency-increasing weights

Foundation 1 linked topicPublished

Definitions

In plain terms

The linear WMA convention implements this with weights increasing toward the newest value.

Technical

A reproducible schedule fixes age ordering, exact weights, normalization, missing values, and tie timestamps.

Scope

More recent weight does not guarantee lower error or better trading performance.

Examples

  • A governed lesson uses Newest-Heavy Weighting only with declared inputs, timing, parameters, and edge-case behavior.

Common misconceptions

  • More recent weight does not guarantee lower error or better trading performance.

Concept relationships

Prerequisites

Related

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D07-F01-A03 Important

Evidence and governance

  1. Weighted Mean NIST · official standard

    Supports: preferred label, short definition, technical definition

    Limits: The reference does not choose the newest-heavy linear weights used by one technical-analysis WMA convention.

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

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.