Eagle AI Labs: Understanding Bot Accuracy

Our bot achieves an impressive 98.37% accuracy, but it’s crucial to understand how we calculate this.

How We Measure Accuracy

We use Mean Absolute Percentage Error (MAPE) to gauge the accuracy of our bot’s predictions. MAPE works by calculating the average percentage difference between the predicted prices and the actual market prices. This provides a clear view of how close the bot’s forecasts are over time. For example, with a MAPE of 1.63%, it means that the average difference between the bot’s predicted prices and actual market prices is only 1.63%.

Why Does MAPE Matter?

MAPE is a valuable metric because it focuses on the percentage difference between predicted and actual values, giving you an understanding of how well the bot performs in various market conditions. However, it’s important to note that individual predictions may sometimes be less accurate, but overall, MAPE offers a reliable long-term measure of performance.

Addressing Directional Accuracy

One area we are working to improve is directional accuracy—predicting whether prices will rise, fall, or hold steady. While the bot excels at price forecasting, refining its ability to predict directional movements is our next goal.

Continual Learning for Long-Term Benefits

Thanks to its neural network, the bot constantly learns from past data, becoming more accurate with time. It adapts to market changes, ensuring continual improvement in its performance.

A Pre-Trade Tool—For Now

At this stage, our bot is a powerful pre-trade tool that works best alongside other trading tools. While it offers high accuracy, using it in combination with additional strategies will yield the best results. However, we’re striving to make this bot so advanced that it could eventually become the only tool you need for making informed trades.