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Description

The Nadaraya-Watson indicator is a Premium smoothing indicator that uses a simple Gaussian Kernel regression method as a weighting function to smooth the price. The indicator can be switched between non-Repainting and repainting modes.

The indicator can also be run on a timeframe and calculate price smoothing on a Higher timeframe. The indicator exposes Buy/Sell signals that can be used from withing a strategy an thus, can be easily integrated with the NinjaTrader Strategy Builder.

The Nadaraya-Watson smoother can be described as a series of weighted averages using a specific normalized kernel as a weighting function. For each point of the estimator at time t, the peak of the kernel is located at time t, as such the highest weights are attributed to values neighboring the price located at time t

Examples

Non-Repainting Mode

On the below example, you can see the Nadaraya-Watson smoother in action on ES-5 Minutes timeframe with a non-repainting mode. The parameters used on this example are:

• Window Size : 500
• Bandwidth: 8

Repainting Mode

On the below example, you can see the Nadaraya-Watson smoother in action on ES-5 Minutes timeframe with a Repainting mode on the same price region as the previous example. The parameters used on this example are the same as the previous example:

• Window Size : 500
• Bandwidth: 8

Features

The Nadaraya-Watson indicator has a set of unique features

• Can be run on two modes : Non-Repainting or Repainting mode
• Can be Run on Higher timeframes
• Easy integration in a custom Strategy or from the NinjaTrader Strategy Builder Wizard Tool
• Highly customizable, lightweight and fast calculation compared to the same indicator from other vendors

Parameters

We always try to keep the parameters to minimum.

License
License	This is the license key you get when you create an account on automated-trading.ch. After creating an account, copy your license key from the billing page. You need to set this parameter only once per month, once the license key is validated it will be remembered for the rest of the month.
General
Run On Higher TimeFrame	This parameter will enable/disable running the smoothing algorithm on a higher timeframe and display the result on the active chart
Higher TimeFrame	This parameter allows to select the higher timeframe on which the smoothing engine will be run. Make sure to select a higher time-frame in regard of the active charts' timeframe. For example, if the current time-frame on the chart is 15 Minutes, make sure that the value of this parameter represents a bigger time-frame such as 1 Hour. If in that case you select 1 Minute as a higher time-frame for example, the indicator will not work.
Higher TimeFrame Period	This parameter sets the period of the higher timeframe
Window Size	This parameter sets the window size of the Nadayara-Watson smoothing function
Bandwidth	This parameter controls the bandwidth of the Gaussian kernel, with higher values returning smoother results. A lower bandwidth value would contribute toward a more important weighting of the price at a precise point and would as such less smooth results
Allow Repaint	This parameter enables/disables repainting of the smoother. If repaint is not enabled, the endpoint of the smoother is returned for each point
Rendering
Bearish Color	Draw Color of bearish items to draw on the chart
Bullish Color	Draw Color of bullish items to draw on the chart

Download & Installation Instructions

Frequantly Asked Questions

Release Notes

User Comments & Feedback