Absolute Basics Curriculum Exam
Test, Don't Guess - Are You Ready For AlgoBox™?
Test Your Knowledge of The Basics of Trading!
40 Minutes | 40 Questions | 40 Answers
See if you can pass this exam in under 40 minutes. Grab a pen & paper or a digital notepad to record your answers and make a note of the time or set a timer.
1)
True or False: The ABC course helps new traders understand the very basics of financial markets and understanding needed to effectively use the AlgoBox™ system.
2)
What was one major drawback of the barter system before the invention of money?
A) It relied on digital transactions B) It was backed by precious metals C) It required a double coincidence of wants D) It allowed for global trade E) It was faster than using money
3)
How does understanding the history of money help modern traders?
A) It explains how to price futures contracts B) It teaches the technical setup of trading software C) It shows that trading is a natural human activity of exchanging value D) It reveals which currencies are most valuable today E) It removes the need for using modern trading tools
4)
What is the primary focus of modern-day trading compared to traditional investing?
5)
Name two advantages of futures trading mentioned in the text.
6)
True or False: Futures contracts allow traders to gain exposure to assets like indices and forex without owning the underlying asset.
7)
True or False: Instruments like the ES, NQ, RTY, and YM are popular futures contracts commonly traded with AlgoBox™.
8)
Which type of trader holds positions for only seconds to minutes and takes multiple trades in a single session? A. Swing Trader B. Position Trader C. Day Trader D. Scalper E. Investor
9)
What is the primary focus of trading with the AlgoBox™ system? A. Long-term investing based on company fundamentals B. Holding trades overnight to catch major market swings C. Continuous trading throughout the day for maximum screen time D. Executing frequent trades on multiple asset classes for diversity E. Precision short-term trades using confluence, automation, and pattern recognition
10)
What does it mean to “go short” in trading?
11)
Why is learning to trade both long and short important for traders?
12)
True or False: Futures contracts are only used by long-term investors who plan to hold until the contract's expiration date.
13)
True or False: Futures contracts allow traders to control large positions with a relatively small margin deposit.
14)
What is one primary advantage of trading Micro futures contracts compared to Mini contracts?
A. They offer higher leverage. B. They require a larger margin deposit. C. They allow traders to practice with smaller position sizes. D. They are less liquid than Mini contracts. E. They are only available for stock trading.
15)
Which statement best describes the relationship between Micro and Mini futures contracts?
A. Micro contracts are ten times larger than Mini contracts. B. Mini contracts are designed for beginner traders with small accounts. C. Micro contracts are one-tenth the size of Mini contracts, offering more flexibility. D. Both Micro and Mini contracts require the same margin and risk exposure. E. Mini contracts are exclusively used for commodities, while Micros are for indices.
16)
Why is automation important in modern trading environments?
17)
How does AlgoBox™ help traders identify high-probability trade setups?
18)
True or False: Institutions and high-frequency traders (HFTs) primarily rely on lagging indicators to make trading decisions.
19)
True or False: AlgoBox™ provides automation and real-time order flow analysis to help traders compete against sophisticated market participants.
20)
What primarily causes market movements? A) Random chance and speculation B) Buyers and sellers agreeing to transact at certain price levels C) Only economic news and earnings reports D) Central bank decisions exclusively E) Automated trading algorithms only
21)
According to the AlgoBox™ approach, what is essential for anticipating market moves? A) Predicting future news events B) Reacting to past price movements C) Understanding volume and liquidity flow in real time D) Following daily stock tips E) Relying on lagging technical indicators
22)
What is the main limitation of traditional time-based price charts like candlestick charts?
23)
How do AlgoBars differ from traditional charts in displaying price movement?
24)
True or False: Price action involves analyzing raw chart and candle movements without using indicators.
25)
True or False: Most AlgoBox™ indicators and trading robots are conventional tools commonly found in all trading platforms.
26)
What defines an uptrend in market structure? A) A series of lower highs and lower lows B) A series of higher highs and higher lows C) Price moving sideways within a range D) Price breaking through resistance downward E) Price stalling at support levels
27)
What typically happens during a breakout? A) Price moves within a tight range B) Price bounces repeatedly off support C) Price moves past support or resistance levels D) Price forms lower lows and lower highs E) Price reverses without crossing key levels
28)
Name two reversal chart patterns mentioned in the material.
29)
What is the main difference between reversal and continuation chart patterns?
30)
True or False: Elliott Wave Theory divides price action into a five-wave impulse move followed by a three-wave corrective move.
31)
True or False: The AlgoBox™ FibElliDott indicator requires traders to manually draw wave structures and Fibonacci levels for accurate analysis.
32)
Which trading platform is known for advanced charting, market replay, backtesting, and automated trading, especially for futures? A) MetaTrader B) NinjaTrader C) ThinkorSwim D) TradingView E) Robinhood
33)
AlgoBox™ is designed to work exclusively with which trading platform? A) MetaTrader B) NinjaTrader C) TradeStation D) TD AmeriTrade E) Interactive Brokers
34)
What are the purposes of stop-loss and take-profit orders?
35)
True or False: The bid-ask spread is the difference between the lowest price a buyer will pay and the highest price a seller will accept.
36)
How does AlgoBox™ help traders compete in the market? A) By providing lagging indicators and guesswork B) By focusing only on basic chart patterns C) By giving access to advanced real-time order flow analytics D) By encouraging emotional trading E) By promoting over leveraging
37)
True or False: AlgoBox™ translates real-time order flow and volume data into clear visual and audio signals to help traders make confident decisions.
38)
True or False: Interpreting raw tape, deltas, and order book activity manually is easy for beginners.
39)
Which of the following is MOST important when choosing a broker for using AlgoBox™?
A. Ability to trade options only B. Support for futures trading and compatibility with NinjaTrader C. High commission structure and minimum trade limits D. Support for paper-based trading only E. Access to penny stocks
40)
What two platforms should you download to begin practicing with a demo account in the 120 Day Program?
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