What is forecasting skill and prediction skill?

Working with the digital has become a must if you’re dealing with information for a living with a view to analysing data sets to assess and predict the direction of markets, equities or FX.

The answer is relatively simple — there are two elements to processing information: analysis and forecasting. More often than not the existing information is used for making forecasts, and further plans are made on top of these forecasts. Forecasts are the foundation for much of the modern world and this be in via human led or machine led analysis is vital for Hedge Funds and others to gain tiny market advantages:

Forecasting methods can be split into two categories:

• Intuitive forecasting is based on expert opinions and evaluations. They are applied wherever mathematical analysis is either inapplicable or simply useless.
• Formal approach to forecasting allows making technical, mathematical projections that help us understand what the future may have in store.

Learning to forecast is not as hard as it may seem! Applying these methods in life is fun, and Trade Fighter helps to also make it profitable, without exposing you to the whales — we believe it is better to train first with manageable limits and exposure before you dive deep into the world of prediction and trading.