One more setup step that you will need to do is to create an appium.capabilities.json file in the root folder of your project. This is basically a configuration file that you can use to configure the emulator that you need to run any of your tests on. The file is documented on the Appium site but to get you up and running quickly you can use the paired-down file which we use as follows:
{ "android44": { "browserName": "", "appium-version": "1.6.5", "platformName": "Android", "platformVersion": "4.4", "deviceName": "Android 44 Emulator", "noReset": false, "app": "" }, "ios10phone": { "browserName": "", "appium-version": "1.6.5", "platformName": "iOS", "platformVersion": "10.0", "deviceName": "iPhone 6 Simulator", "app": ""