The correct way to use STOKAI – Stocks and FX market forecast algorithms. The tutorial shows EUR/USD graphs. And Germany,France PMI “root cause” example. However, this will vary from asset to asset.
It is advisable to spend the first month, learning how to use STOKAI effectively. Hence, please review the backtesting and simulation graphs in early days along with the markets. Or if possible, use paper money broker accounts to get a grip of this.
Stocks FX market forecast – user guide
On some days, markets work efficiently. Hence, when viewing the backtesting results the graph will track very closely with the realised data.
On the other hand, if you find that there is deviation from forecast path. And it can’t be attributed to some specific news on the trading day(remember that the forecast is based on previous day’s close). Then, this is because one of the macroeconomic variables has changed but not yet reported. It could be interest rates, inflation figures, unemployment rate etc. With time, and practice, you will develop intuition on which variable this is.
The literature on the website should be thoroughly reviewed and understood. Trading in financial markets involve risk and therefore the reward.
Finally, sometimes the algorithm output will be very extreme values. In other words, you will see a forecast which is seemingly unrealistic. In such cases, understand that central policy makers also use similar algorithms to forecast markets. Hence, you will see an announcement in the news by govt. or central bank. For instance, they might announce interest rate change, bond buy back or other market stimulus.
We wish you the best of luck. And we are sure STOKAI will provide you the support needed to become an excellent trader of financial markets.
Stokai is a product of Rumble Horse Tech ltd. A company registered in England.