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Abstract. An improved Kalman filter algorithm is proposed by two kinds of anti-perturbation method which is derived according to the perturbation theorem of inverse matrix. Furthermore, direction-correcting has been merged into the algorithm by using multiple hypothesis testing theory which can detect the current direction of a target. Finally, Both quantitative and qualitative analysis are given in detail. The measurements and experiments based on indoor positioning demonstrate that the improved algorithm(named IKF) has great performance