Alpha Beta Trend Filter with Multi-Timeframe Matrix Dashboard

Related: Alpha Beta Channel - another powerful indicator for MetaTrader 5 traders.

1. Overview

The Alpha-Beta Trend Filter is a predictive smoothing indicator rooted in control theory and digital signal processing. It functions as a simplified, steady-state Kalman filter. Unlike standard Moving Averages (SMA, EMA, LWMA) that rely solely on past data and lag behind live price action, the Alpha-Beta filter estimates the current "true" price and trend velocity while filtering out market noise.

Also recommended: Covariation, Correlation, and Beta Indicator for MT4/MT5 - similar indicator with strong performance on MetaTrader 5.

This MQL5 implementation enhances the classic single-line indicator by integrating a Multi-Symbol, Multi-Timeframe Matrix Dashboard. Traders can monitor the Alpha-Beta trend bias across their entire portfolio from a single chart, with dynamic updates on every tick.


2. The Mathematical Engine

The filter iterates on each new price bar, guided by two primary tuning coefficients:

$\alpha$
(Alpha):
Price sensitivity coefficient, balancing the weight of new price observations against the filter's prediction.

$\beta$
(Beta):
Velocity sensitivity coefficient, controlling responsiveness to trend momentum changes.

The algorithm operates in two phases per bar:

Phase 1: Prediction Step

Before the current bar closes, the filter predicts the current price (
$\hat{P}_{t}$
) and velocity (
$\hat{V}_{t}$
) based on the previous bar's state:

$$\hat{P}_{t}=P_{t-1}+V_{t-1}$$

$$\hat{V}_{t}=V_{t-1}$$

Phase 2: Update Step

Upon the actual closing price (
$Z_{t}$
) printing, the filter calculates the error (
$E_{t}$
) between prediction and reality, updating its state:

$$E_{t}=Z_{t}-\hat{P}_{t}$$

$$P_{t}=\hat{P}_{t}+\alpha E_{t}$$

$$V_{t}=\hat{V}_{t}+\beta E_{t}$$

Where:

$Z_{t}$
:
Actual closing price of the current bar.

$P_{t}$
:
Updated, smoothed price estimate (plotted).

$V_{t}$
:
Updated velocity (determines trend bias).


3. Key Features

Zero-Lag Predictive Smoothing:
The indicator line closely follows price action, ideal for fast crossover strategies.

Dynamic Color-Coded Plotting:
The chart line shifts between Blue (bullish) and Red (bearish) based on velocity.

Non-Intrusive Matrix Dashboard:
An on-chart UI tracks the trend state (Bull, Bear, Wait) for multiple timeframes across user-defined symbols.

Lightweight Resource Management:
External symbols and timeframes in the dashboard load minimal history, preventing terminal lag.


4. Input Parameters

Filter Engine Settings

inpAlpha (Default:
$0.2$
):
Typical range is
$0.1$
to
$0.9$
. Higher
$\alpha$
tracks prices closely; lower smooths out sideways chop.

inpBeta (Default:
$0.05$
):
Typical range is
$0.01$
to
$0.5$
. Higher
$\beta$
reacts to momentum shifts; lower assumes a steady trend.

Dashboard Grid Settings

inpSymbols (Default: "EURUSD,GBPUSD,USDJPY,AUDUSD"):
Comma-separated list of symbols to track, parsed by StringSplit().

Timeframe Toggles (showM5 to showD1):
Customizes dashboard columns.


5. Architecture & Code Highlights

For MQL5 developers:

Time-Series Indexing:
Arrays are indexed with ArraySetAsSeries(buffer, true) for standard trading logic.

State Extraction Helper:
GetStateForTarget() fetches prices, initializes the engine, and returns the trend state without iCustom calls.

Clean Object De-initialization:
OnDeinit() ensures all graphical labels are removed when the indicator is deleted.


6. Trading Applications

Scalping:
Use
$\alpha$
of 0.45 and
$\beta$
of 0.12 for rapid color changes, capturing micro-trends.

Macro Swing:
Set
$\alpha$
to 0.15 and
$\beta$
to 0.02 for intraday noise filtering, identifying macroscopic velocity shifts.

Matrix Confluence:
Trade only when H1, H4, and D1 cells align in color for a specific symbol.

You may also like: alpha trend spotter-pa free - excellent alternative for indicator users on MetaTrader 5.

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#property link "https://robotfx.org"
#property version   "1.00"
#property version   "1.00"
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_plots   1
#property indicator_label1  "Alpha-Beta Trend"
#property indicator_type1   DRAW_COLOR_LINE
#property indicator_color1  clrDodgerBlue, clrCrimson

.......

• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.