This content introduces the KST (Know Sure Thing) indicator as a highly effective momentum-based trading tool that, when integrated into a robust trading system with specific filters and risk management, delivers consistent performance.
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On this channel, we have tested more
than 60 different trading indicators,
and most of them failed. But the
indicator I'm presenting you today is
about to enter the top five. And that
raises a different question. What is
this indicator doing differently from
all the others? Today, I'm going to
break it down properly, how it works,
where it actually performs best, and how
you can use it in a real trading system.
And stay tuned until the end because I
will also give you a free upgraded
version that fixes its biggest
weaknesses. I'm ATP and let's get started.
Firstly, I want to give a quick shout
out to the subscriber who suggested this
indicator. This video exists because of
you. So, thank you for that. And this is
exactly how this series works. If there
is an indicator or strategy you
genuinely believe as an edge, drop it in
the comments. I read everything and the
best ideas get tested here on the
channel. Now, let's open Trading View
and actually put this tool on the chart.
Just go to the indicators tab, search
for no sure thing or KT and it is this
one right here built by Trading View.
The KST is an indicator built on four
different rate of change cycles. Each
one representing a different layer of
market momentum. So instead of reacting
to price like most oscillators do, the
KST blends all of them together, smooths
out the noise, and then compresses
everything into two main lines. The
first one is the KST line itself. When
it's above zero, overall momentum is
bullish. When it's below, momentum is
bearish. But we are not trading zero
line crossovers in this video. Those
tend to be late and honestly they are
not the real edge of this indicator. The
real secret lies in the signal line. The
signal line is simply a moving average
of the KST itself. And when these two
lines interact, they can tell us when
the market's momentum is shifting while
the move is starting. So for this test,
a long signal happens when the KST line
crosses above the signal one and the
short signal happens when the KST line
crosses below the signal line. Regarding
the settings, I'm not using the default
values because they tend to generate too
many fake crossovers. So for this test
I'm using 10, 15, 20, and 30 for both
the rate of change cycles and their
averages with a signal smoothing of 20.
In practice, this makes the indicator
slower but far more reliable. Now we are
going to do what we always do here. We
are going to turn this indicator into a
complete rulebased trading system. First
we need context. Because the KST is a
momentum indicator, it performs best
when it's aligned with the dominant
market direction. So, we are going to
filter out trades using something simple
and proven. We'll use a 200 period
exponential moving average as our
baseline. Long trades are only allowed
when the price is above the 200 EMA and
short trades are only allowed when the
price is below it. Now, let's talk about
risk management. Instead of using fixed
stops or random levels, we are going to
let volatility define the risk. Stop
losses will be placed using the ATR
bands indicator with a multiplier of
three. That means stops expand and
contract with market conditions instead
of being randomly hit by noise. And for
exits, we are going to use a two-stage
exit designed specifically to take
advantage of what the KST does best,
catching large momentum waves. Here's
how it works. The first take profit is
placed at a 1:1 riskto-reward ratio.
When price reaches that level, we close
50% of the position and at the same
time, we move the stop-loss to break
even. From there, the remaining 50% of
the trade is managed using a trailing
stop based on the ATR bands. Simple and
highly efficient.
Now, before we move to the testing
phase, I want to show you something
practical. To make this system easier to
use, especially for live trading, I
created a custom upgraded version of the
noir thing. This version already
includes the optimized settings. We are
using the 200 EMA trend filter and clear
buy and sell arrows when a valid signal
appears. If you want to use it, I've
shared the full code for free inside our
Discord in the free materials channel.
You just need to copy the script, open
the Pine editor, click on create new
indicator, paste the code, save it, and
add it to the chart. You can also create
Trading View alerts directly from it,
which makes it even more useful if you
don't want to stare at charts all day.
Now that the rules are fully defined,
it's time to define our sample. For this
test, we are going to cover five
different assets across crypto, stocks,
and forex to see how the KST behaves
across completely different markets. On
top of that, we'll use four different
time frames ranging from lower to higher
ones. And finally, all tests will cover
a full three-year period, giving us
thousands of trades and multiple market
cycles to work with. As you might
expect, doing this work manually will be
completely unrealistic. Just one asset
on one time frame will take weeks.
That's why all these tests will be run
using the indicators testing bot. It
allows me to apply the exact same rules
across all assets and time frames,
analyze thousands of trades
automatically in seconds, and extract
clean performance data in minutes. It
already includes more than 100
indicators, supports custom scripts, and
is used by hundreds of traders for back
testing, optimization, and even live
trading. If you want to explore it
further, all the details including the
free user guide are available on my
website. So with everything set up, I
run the full back test with the same
logic and same structure. And now let's
look at the results because this is
where things get interesting. Let's
start with the lower time frames. On the
5-minut chart, the results are
underwhelming. The system fights with
noise and the equity curve isn't stable.
And this isn't a surprise.
Momentum-based systems like this one
simply don't succeed when structure
doesn't have time to develop. Moving up
to the 30inut time frame, everything
changes. The win rate improves, draw
downs decrease, and the equity curve
becomes much more consistent. Then on
the 1 hour chart, performance remains
solid, still profitable and efficient
with Bitcoin being the best asset in
this time frame. And finally, on the
daily chart, we get another clean
behavior. Fewer traits, yes, but higher
quality. So, here's a takeaway. The no
sure thing is not a fast signal
generator, and it's not a plugandplay
indicator, but when used correctly, it
becomes one of the most reliable
momentum tools we have ever tested on
this channel. On the official indicators
ranking table, the no sure thing earns
its spot in the top five, not because it
produces flashy signals, but because it
delivers consistent performance when
used the right way. It sits alongside
indicators that favor quality over
quantity. And that's exactly why it
stands out. Our top one still remains
the purple cloud, followed closely by
the super trend fusion. And that's it.
If you found this breakdown useful, make
sure to leave a like. It generally helps
the channel more than you think. And
subscribe if you are new here. I'm ATP.
Stay sharp, trade smart, and I will see
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