alpha_1
Alpha#1
Type:
alpha_1• Category:flow
Description
Alpha#1 - an indicator based on price returns, standard deviation, and other parameters.
Parameters
| Name | Type | Description | Required | Default |
|---|---|---|---|---|
close | array | List of closing prices | no |
Help
Overview
Alpha#1 is a statistical indicator that evaluates market behavior by combining price returns, standard deviation, and additional configurable parameters. It provides a quantitative measure of price volatility and trend strength, helping analysts and automated trading systems to assess the risk‑adjusted performance of an asset over a specified period.
Inputs
- close:
array— A chronological list of closing prices for the asset under analysis. The array should be ordered from oldest to most recent price and can contain number entries, though a minimum of two values is required to compute returns.
Example Usage
A typical request to the Alpha#1 worker includes the close array in the payload. For instance, to calculate the indicator for a series of five closing prices, you would supply:
{
"close": [102.5, 103.8, 101.2, 104.0, 105.3]
}
The worker processes the data and returns a single numeric value representing the Alpha#1 indicator for the provided price series.
Worker Description
Alpha#1 derives its value by first calculating the periodic returns from the supplied closing prices, then measuring the dispersion of those returns using standard deviation. Optional parameters (not shown in the minimal schema) can adjust the weighting of recent data, apply smoothing techniques, or set confidence thresholds, allowing the indicator to be tailored to different market conditions or analytical preferences.
Worker Help
The Alpha#1 indicator quantifies how much an asset’s price fluctuates relative to its average return, offering insight into both volatility and trend consistency. By integrating standard deviation, the metric captures the degree of dispersion around the mean return, while the return component reflects the direction and magnitude of price changes. This combination makes Alpha#1 useful for:
- Identifying periods of heightened market risk.
- Comparing the stability of different assets or time frames.
- Feeding into risk‑adjusted performance models or trading signals.
The methodology follows established statistical principles; deviations from this approach would alter the indicator’s interpretability and could lead to misleading assessments of market dynamics.