Meaning
Technical indicatorsIndicator Accuracy
The meaning of technical indicators’ accuracy is: For a certain technical indicator, under certain parameter setting conditions, after traversing and analyzing long-term historical data by an analysis robot, in the case of a clear indication of the technical indicator, the price fluctuation of the investment product is consistent with the direction and amplitude indicated by the indicator The percentage rate. Its function is to measure the accuracy of technical indicators for a large amount of data analysis under certain parameter settings.
Accuracy rate of technical indicators = The number of successful predictions of technical indicators/The total number of predictions of technical indicators
Analysis
Accurate technical indicators Rate is closely related to investment products
Each indicator and investment product has its own characteristics and operating rules. There is no universal technical index. Some indicators focus on the analysis and grasp of long-term trends; some are biased towards the processing and prediction of short-term fluctuations. The accuracy of the same index for different investment products is quite different. The Gabriel investment research team used RSI and CCI indicators to test different foreign exchange products through the trading robot and analytical robot software developed by itself. The results of long-term historical data processing show that the technical indicators of the Australian dollar, euro and US dollar currency pairs have the highest accuracy rates, especially the Australian dollar and US dollar currency pairs. The yen is the lowest.
The accuracy of technical indicators is closely related to their own parameter settings.
Most technical indicators have many parameters that can be set, for example: the minimum time period for analysis is 1 minute, 5 minutes or 1 Hours, 1 day? What is the number of sampling points for technical indicators such as RSI and MACD indicators at one time? The same technical index parameter settings are different, and the analysis effect is very different, which has a serious impact on the accuracy of the final technical index.
The accuracy of technical indicators is closely related to the setting of auxiliary parameters.
The accuracy of technical indicators is not only important to the setting of its own parameters, but also affected by the setting of peripheral auxiliary parameters. For example: For a high-leverage spot gold variety, if the stop loss and take profit parameters are set relatively low when analyzing the robot to apply technical indicators to test historical data, it is easy to hit the stop loss or take profit position due to small price fluctuations. Affected the final accuracy value.