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I would like to know why eSignal has only allowed Tradestation EMA Alpha averaging which is:-
(2/Period+1) & (1-(2/Period+1) ) ;
whereas formulas such as ADX, RSI etc... use Wilder's EMA Alpha averaging which is:-
(1/Period) & (1-(1/Period))
I feel that any EMA should be allowed to be averaged by either Tradestation or Wilders Alphas, or even better add a smoothing period choice which would then be 0 for Wilder's and 1 for Tradestation i.e.:-
Alpha = (1+(Smoothing Period))/(Period+Smoothing Period)
For true flexibility this number could be anything from 0.1 upwards (say to 50), and even better would be to also allow direct imput of Alpha, so that instead of periods, the formula will work on the Alpha only where values from 0.1 to 1.5 would be most useful. Of course the initial calculation has to be done by an SMA which can be computed reversely using either Wilder's or Tradestation EMA Alpha methodology to determine a suitable period for the SMA to compute the first value.
Robert
(2/Period+1) & (1-(2/Period+1) ) ;
whereas formulas such as ADX, RSI etc... use Wilder's EMA Alpha averaging which is:-
(1/Period) & (1-(1/Period))
I feel that any EMA should be allowed to be averaged by either Tradestation or Wilders Alphas, or even better add a smoothing period choice which would then be 0 for Wilder's and 1 for Tradestation i.e.:-
Alpha = (1+(Smoothing Period))/(Period+Smoothing Period)
For true flexibility this number could be anything from 0.1 upwards (say to 50), and even better would be to also allow direct imput of Alpha, so that instead of periods, the formula will work on the Alpha only where values from 0.1 to 1.5 would be most useful. Of course the initial calculation has to be done by an SMA which can be computed reversely using either Wilder's or Tradestation EMA Alpha methodology to determine a suitable period for the SMA to compute the first value.
Robert