Signal to Noise Ratio

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In the Signal to Noise Ratio chart, we entered a long trade based on the Adaptive RSI being below a threshold, meaning that the market was oversold. We closed the position when the Adaptive RSI was above a threshold, meaning the market was overbought. However, we only entered trades when the signal to noise ratio was high, indicating there was less noise in the data, which should give higher confidence for a proper trade. We employed our optimizer to determine what ratio was high enough, and the thresholds for the RSI.

 

Signal to Noise Ratio