Direct answer
No. Kaufman Efficiency Ratio is defined as a measure derived from price changes over a lookback window. It does not set, use, or require a “1 in 100 ratio” as an input. If you see “1 in 100” on a provider’s platform, that typically refers to a leverage or margin-style parameter, which is conceptually different from KER.
How “1 in 100 ratio” differs from Kaufman Efficiency Ratio
What KER is
Kaufman Efficiency Ratio (often written KER) is an efficiency metric: it compares the net movement over a period to the total movement during that same period. In plain terms:
- “Net movement” captures how far price traveled from the start to the end of the lookback.
- “Total movement” captures the sum of absolute price changes along the way. The result is a normalized value based on those two components.
Because KER is computed from a sequence of prices (and a chosen lookback length), it is not tied to broker leverage, account margin rules, or order sizing ratios.
What “1 in 100” usually means
A phrase like “1 in 100” is commonly used to describe leverage or a ratio related to required margin. Those are provider- and account-specific settings. Even if two traders have the same market data, the provider’s margin/leverage conditions can differ by:
- instrument,
- account type,
- regulation/jurisdiction,
- risk controls.
So, even if a platform offers a “1 in 100” leverage setting, that does not change what KER means or how it is calculated.
Example checks you can do independently
Check 1: Where does your “ratio” appear?
If the “1 in 100” is shown in account settings, order ticket fields, or margin/leverage information, treat it as a risk/money-management parameter.
If you are configuring a technical indicator, KER settings typically involve things like a lookback period, not leverage ratios.
Check 2: Recalculate KER from price data
KER can be computed from historical prices for a chosen lookback length. If you change leverage settings but keep the same price series and lookback window, the KER value should stay the same, because leverage does not alter historical price movements.
Check 3: Separate “indicator output” from “platform execution”
Indicator values describe characteristics of past price movement. Platform ratios affect how much capital is required to open positions and how risk is constrained. These two layers can be studied separately.
Limitations and uncertainty
- There is no real-time confirmation here about whether IG Forex (or any specific platform) currently offers a “1 in 100 ratio”; that depends on current provider policies and account details.
- Kaufman Efficiency Ratio is a general technical concept; however, platform implementation can vary in details like smoothing, data source, or calculation conventions.
- This explanation does not infer future results, does not validate current margin availability, and does not determine what ratio you personally can use.