Adaptive Bias - MetaTrader 5 Script | Trading Script Download - MT4/MT5 Resources - MetaTrader 5 Resources

By definition, standard deviation ( standard definition , also represented by the Greek letter sigma or the Latin letter s) is a measure used to quantify the variation or dispersion in a set of data values. In technical analysis we usually use it to measure the current level of volatility.

The standard deviation calculates the mean based on a simple moving average. The built-in MetaTrader 5 standard deviation can change this and can be calculated using one of the 4 basic average types. This version doesn't do that. Instead, it uses the properties of EMA to calculate what is called a new type of deviation, and since it is based on EMA, we call it EMA deviation. In addition to this, Perry Kaufman's efficiency ratio is used to make it adaptable (as all EMA type calculations adapt almost perfectly)

The difference compared to the standard is quite significant - not just because of the use of EMA, but also the efficiency ratio which makes it "more logical" in very volatile market conditions

Attachment download

📎 adaptive_deviation.mq5 (10.76 KB)

Source: MQL5 #26384