Signal vs Noise Filter

How it works

• • Signal-to-noise ratio determines how detectable true trends are
• • Longer filter windows reduce noise but add lag
• • There's always a tradeoff between smoothness and responsiveness

What this means for investors

Kekkei uses adaptive filters that automatically adjust their parameters based on current market conditions. In trending markets, we use faster filters to capture moves. In choppy markets, we slow down to avoid whipsaws. This dynamic approach outperforms static filtering methods.