Modern traders have several options for boosting their earnings, including the ability to make use of a binary options robot. Trading robots are similar to signals in that they take 99% of the work out of the hands of the trader.
Both can eliminate most if not all of the tasks of technical and fundamental analysis. Where they differ is in the fact that signals often need to be traded manually, while robots auto-trade on behalf of the trader. At its very best, a binary options robot will allow the trader to put forth considerably less effort.
The trader needs to know, however, which types of robots to look for and which to avoid. There are a number of Binary Option Robot scams abound on the internet and the savvy trader should be able to sort the wheat from the chaff.
How does an Option Robot Work?
Most often, they scan the markets and enter and exit trades in accordance with a pre-programmed algorithm. The algorithm detects patterns in the market and alerts the robot to take action when conditions are ideal for a profitable trade. Some human involvement is possible, but remember that it is called a robot for a reason. In truth, a reliable and well-tested algorithm can be a powerful profit tool, but it cannot account for changes in market sentiment. As such, many robots are set to automatically pause trading when market conditions become too volatile.
The robots that are seen on the binary options market today come in two forms: fixed and with customization. The fixed option typically only requires the trader to make two or three selections, including turning the trade function on, selecting a risk level, and selecting a per-trade investment amount. A binary options robot that offers full customization will offer many more options than this, such as the ability to select from various money management strategies, expiry times, specific assets, indicators, algorithms, and more. In this case, the trader has to put forth more effort, but is provided with more control.
Choosing the right Broker
Another thing to consider when deciding on binary options robots is the fact that some only work with a specific broker platform. With these, the trader must create and fund an account with the specific broker in order to be able to use the robot. If said broker has a poor reputation in the industry, some serious consideration is called for before deciding to allow a tool to do the trading for you. Some robots can be used with a variety of brokers. One word of caution here would be to make sure that the use of a robot does not violate the terms & conditions that the broker has in place.
It is very important for each trader to do his or her due diligence when it comes to screening trading tools and products such as signals and auto-traders. The creators of such tools almost always charge a fee for their use; meaning that it is possible to lose money if the tool does not perform well. When marketing a product such as a binary options robot, the creator should provide the average win rate and actual past results. In some cases, a trial period may also be provided. If so, consider taking advantage of any opportunity to test the product before committing to a subscription.
Which Binary Options Robot?
There is such a thing as a free binary options robot and this too should be screened well before putting it to use. Free automated trading software is often linked to a specific broker, as the creator often partners with said broker. No expert will recommend that a trader blindly allow someone or something else to trade for them, so some homework is required. Free tools can be excellent, but only if they allow for a high level of customization. The best advice is to test any free robot in either a demo account or by using small investment amounts. Make use of the various settings and take note of trade outcomes.
Those who are new to options trading are among those who are most likely to place their faith in products such as signals, automated trading software, and binary options robots. However, experienced traders do put these tools to use as well, as a means of supplementing the trading income that they are already generating. When a robot is proven to be effective, there is certainly no shame in rely on auto-trading tools and signals as a means to generate the largest amount of daily income from binary options trading.