Potential Trade Ideas

Potential Trade Ideas

Smart Notifications are here to give you real-time reminders for Economic Events:

  • Before the event so you can prepare your trades for the event.
  • During the event so you can react to the actual release.

Click here to see the actual release as it happens!

Potential Trade Ideas

Potential Trade Ideas

We break down all possible outcomes and come up with trade ideas based on analysis of past events impact.

Why does every trader need to know about Economic Events?

  1. Because of their tremendous impact on the financial markets.
  2. Economic Events create surprises in the markets.
  3. Financial markets react to any surprise.
  4. Reaction means change in market price.
  5. Change in price = Profit Opportunity.

Related notifications:

Weaker than Expected

Negative

This means that data from the actual Economic Event release was weaker than analysts expectations. This will likely have a negative effect on correlated markets.

Stronger than Expected

Positive

This means that data from the actual Economic Event release was stronger than analysts expectations. This will likely have a positive effect on correlated markets.

As Expected

As Expected

This means the data from the actual Economic Event release was in-line with analysts expectations. In other words the markets did not receive any new information. Markets are generally quiet following this kind of release.

Release In 5 min

Release In 5 Minutes

This means the actual Economic Event will occur in 5 minutes. In other words the Actual data will be released in 5 minutes. Now is a good time to make sure you are prepared for the release.

Positive Perspective Insight

Positive Perspective Insight

This represents a positive outlook for the event from a historical context.

Negative Perspective Insight

Negative Perspective Insight

This represents a negative outlook for the event from a historical context.

Report Event

Report Event

A scheduled report generally means that we should expect market volatility because new information is getting into the market. When possible the original report file is made available In-App. At times these type of events can have a very strong impact on the markets.

Audio Event

Audio Event

A scheduled audio event generally means that we should expect market volatility because new information is getting into the market. When possible the original audio file is made available In-App. At times these type of events can have a very strong impact on the markets.

Event Just Released

Event Just Released

This means there has been a data release at this exact moment. As of this time our Artificial Intelligence has no indication how the market will respond to the event.

Potential Trade Ideas

Potential Trade Ideas

We break down all possible outcomes and come up with trade ideas based on analysis of past events impact.

Uptrend Trade Idea

Uptrend Trade Idea

Once we have the Actual data for the Economic Event we match it with historical data to come up with the best possible trade ideas. These trade ideas are statistically back-tested. What this means is that we have found a number of times in the past when this economic events release caused a similar surprise to the market. In those similar situations if we had employed these trade ideas we would have statistically made profit on those trades.

Downtrend Trade Idea

Downtrend Trade Idea

Once we have the Actual data for the Economic Event we match it with historical data to come up with the best possible trade ideas. These trade ideas are statistically back-tested. What this means is that we have found a number of times in the past when this economic events release caused a similar surprise to the market. In those similar situations if we had employed these trade ideas we would have statistically made profit on those trades.

Would you like to learn more about Economic Events?

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The unofficial science of surprises:

A good analogy can be made to the weather forecast. Let's assume for a moment you are in a room with no windows and you see on TV that the weather forecast is Bright and Sunny. You step outside from your windowless room and Voila! There is a raging thunderstorm. You will obviously need to go back inside and make new plans. Maybe you will get a coat, umbrella and boots.

All markets operate in a similar fashion. New data (surprises) are constantly driving the markets.

A major part of an analysts job is to "weather forecast" what value the number in the Economic Events release will have. In other words the analyst needs to figure out before the event, what the new data for the economic event will be.

Analyst predictions are abbreviated EXP (shorthand for expected). Every economic event has a time and date scheduled for the Actual data release. The Actual data is what traders and investors are waiting to see.

At the moment of an Economic Events release the market gets new data (the Actual value). This data can be relevant to and cause effect on various markets (like the S&P500 EURUSD etc).

For example:

Let's say GDP of the U.S. will be released at 8:30 EST. Prior to this moment the field representing Expectation is available but the field representing Actual is not yet available. The actual value will be released at 8:30 EST by the government agency responsible for this measurement. Analysts will determine a EXP value for this event maybe even days or weeks before 8:30.

Before Release

gdp before

After Release

gdp after

These images represent the data from the example we discussed above in the BetterTrader app before and after the event release. For a more detailed explanation - Click Here

As soon as the Actual data is released the market immediately starts taking it into account. traders will be very surprised when there is a large statistical difference between Exp and Actual. When market participants are very surprised by any new data they will react very strongly. This will heavily impact any markets correlated to the event.

Would you like to learn more about Economic Events? Get the complete eBook here.

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