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4_K_Value_Algorithm_Of_HedgeFutures_Was_Improved.md

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The k-value algorithm of HedgeFutures was improved

The k-value algorithm of HedgeFutures is adjusted as follows

σ = |(S1 - S0) / S1 / T^0.5|
K = 0.002 * max(σ/σ0, 1) + t^0.5 * max(σ, σ0)

Variable description:

  1. S1 represents current price
  2. S0 represents previous price
  3. T represents seconds between S1 and S0
  4. σ represents real-time volatility
  5. t represents seconds between S1 to now
  6. σ0 represents long-term volatility of ETH, which is currently set to 0.00021368

FORT Core

2021.10.26