FTB-C000406 / Formula component

Wilder Average Loss

Wilder Average Loss is the Wilder moving average of nonnegative loss-magnitude observations.

Also known assmoothed loss

Intermediate 1 linked topicPublished

Definitions

In plain terms

It begins with the arithmetic mean of the first n losses and then updates using alpha one over n.

Technical

The seed count, period, first-ready index, zero losses, missing values, state, revision suffix, and precision must be frozen.

Scope

It is not a signed average and is never negative under valid inputs.

Examples

  • A governed lesson calculates or identifies Wilder Average Loss only after its inputs, window, state, scale, and edge cases are declared.

Common misconceptions

  • It is not a signed average and is never negative under valid inputs.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

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

  • D07-F03-A01 Important

Evidence and governance

  1. Relative Strength Index TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition

    Limits: Seed, flat-series behavior, unstable periods, and platform compatibility must be frozen before claiming parity.

  2. New Concepts in Technical Trading Systems J. Welles Wilder Jr. · first party methodology

    Supports: historical attribution

    Limits: The bibliographic page alone is not an executable specification; equality, seeds, and state transitions require pinned rules.

Reviewed by
fintech-builder-batch-008
Last reviewed
2026-07-29
Next review
2027-07-29
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.