class="first-h2-section">This feature helps you prepare before the event is released. It shows you how the market reacted to previous releases for the event with different Magnitude of Surprise (like “Much Stronger”, or “Weaker”).
Using this tool to prepare for the event will enable you to trade immediately once the actual data is released. This is because you already know how the market reacted and are prepared with the trade idea that matches your specific situation (buy or sell and which market).
All of our potential trade ideas are based on historical market data for the same economic event with the same expected result.
If you are not yet familiar with our Magnitude Of Surprise indicator please click on it and make sure you understand that before continuing.
Our Artificial Intelligence model takes into account the Magnitude of Surprise for a specific economic event. Magnitude has 8 different categories ranging from "A Bit Weaker" through "Much Stronger". Potential Trade ideas calculates the historical data for all 8 of those categories as follows:
It finds all of the releases for this economic event with a similar Magnitude and that have occurred within the past three years.
Note: BetterTrader's machine learning has found that three years is the optimal time-frame for back-testing.
Once our model has found the events with a similar Magnitude it analyzes all of the currencies and instruments price reactions in the time immediately surrounding the event. When it finds significant movement in one of the market instruments or currencies it compares all of the similar Magnitude instances for this specific economic event with significant change in that specific instrument . Then it adds a safety net to the trade ensuring that if the market will react as it has in any one of the similar past events we are likely to make money based on the entering price, exit price and stop loss strategy.
***See Trade Ideas for more on how Potential Trade Ideas and Trade Ideas are detected.