The Efficiency Ratio Gate filter is a pass/block gate on Kaufman’s efficiency ratio of closes (net move ÷ path length over a window). When ER meets your compare condition against a threshold, the filter passes; otherwise it blocks. It never fires a buy or sell by itself.
ER near 1 means a clean trend; ER near 0 means a choppy path. Use it as a simpler “is this trending?” companion to path gates like Hurst Gate.
When to use it
- Only allow trend-following entries while ER stays above ~0.3
- Block mean-reversion bots when the path looks strongly efficient (trending)
- Confirm regime without adding a second directional rule
What you’ll set in the app
Add Efficiency ratio gate under filters.
- Window — bars in the path sample (default 20)
- Compare — ER >, <, ≥, ≤, or ≈
- Threshold — e.g.
0.3(default)
Warm-up history or a flat path blocks the gate. Disabled passes.
Tips
- Defaults use ER > 0.3 for a mild trend bias.
- There is no “side when true”—pair with breakout, MA, or other signal rules for direction.
- Pair with ADX Gate when you want both efficiency and ADX strength.
Example
Entry filters: Efficiency ratio gate, window 20, ER > 0.3. A momentum long only passes when recent closes look path-efficient.