The angular and energy resolutions of the TANGO Array were obtained using extensive Monte Carlo simulations performed with a double purpose: 1) to determine the appropriate parameters for the array to fit to the desired range of sensitivity the “knee” energy region, and 2), to construct a reliable shower database required for reference and analysis of experimental data. The Aires code, with the SIBYLL hadronic collision package, was used to simulate Extended Air Showers produced by primary cosmic rays (protons and iron nuclei), with energies ranging from 10¹⁴ eV to 10¹⁸ eV. These data were feed into a realistic code which simulates the response of the detector stations (water Cerenkov detectors), including the electronics, pickup noise, and the signal attenuation in the connecting cables. The trigger stage was considered in the simulations in order to estimate the trigger efficiency of the array and to check the accuracy of the reconstruction codes. This paper delineates the simulations performed to obtain the expected behavior of the array, and describes the simulated data. The results of these simulations suggest that we can expect an error in the energy of the primary cosmic ray of ~60 % of the estimated value and that the error in the measurement of the direction of arrival can be estimated in ~4 degrees. The present simulations also indicate that unambiguous assignements of the primary energy cannot be obtained because of the uncertainty in the nature of the primary cosmic ray.