Parameters

Learn how adjusting AO’s parameters changes signal sensitivity and indicator behavior.

Overview

AO uses fixed period ratios (5/34). The main tuning comes from choosing the right timeframe and combining with trend filters.

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Fast Period

What It Controls: Fast SMA period for median price.

Default: 5 bars

How It Works:

• Lower values (5–10): More responsive, more signals
• Standard values (11–16): Balanced
• Higher values (17–25): Smoother, fewer signals

What Happens at Extremes

Timeframe Recommendations

Timeframe	Recommended	Notes
1-Hour	14	Standard
4-Hour	14–16	Balanced
Daily	14–21	Position trading

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Slow Period

What It Controls: Slow SMA period for median price.

Default: 34 bars

How It Works:

• Lower values (5–10): More responsive, more signals
• Standard values (11–16): Balanced
• Higher values (17–25): Smoother, fewer signals

What Happens at Extremes

Timeframe Recommendations

Timeframe	Recommended	Notes
1-Hour	14	Standard
4-Hour	14–16	Balanced
Daily	14–21	Position trading

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Note

Parameter Optimization Tip: Start with standard settings and use Reversion’s backtester to measure signal quality. Optimize per asset and timeframe — what works for BTC daily may not work for ETH 4H. Check the indicator usefulness score in algo metrics to verify AO is contributing to your strategy.