Binary options automated trading bots or binary robots are gaining popularity every second in the market because of their ability to make trading overly convenient. One of the many reasons that new traders are finding binary options market lucrative is primarily the usability and application of these robots.
As a word of caution you must always keep in mind that the binary robots would have an inherent risk fact associated with them and as a trader you need to have thorough understanding of the binary trade market before you can earn big profits through these bots. Also, you must understand how these robots operate and what are the metrics that they usually analyze to bring an opportunity to you. As a newbie trader you must be extra careful when deciding about the binary options robots. In this guide we are going to discuss all about binary options bots and how you may watch out for the potential risk factors when using automated trading.
What is a Binary Options Trading Bot?
Simply put, a binary options robot is a software or an online platform that is primarily designed to analyze and locate promising market signals, direct the traders toward best trade options and eventually execute automated orders with no interference from any human.
Examples of Binary Robots:
These robots or automated binary options software really take out all the complexity and overwhelm from the binary trade. However, it is a pertinent question that ‘how the robot decides to place a trade, at all?’. Well, the binary options robots are simply a software, the bot is not an ‘intelligent’ being; it takes a decision based on the pre-built parameters and rules that have been defined by “you” (the trader!). So, whenever the market conditions meet those parameters the bot would go forward with the trade and vice versa. Certainly, this puts the pressure primarily on the trader because they need to have a comprehensive understanding of binary trade, in order to gain advantage from the automated bots. Many a times, the volatile price movement is often something that is blamed on these binary options bots. However, at the same time these automated programs are dominating binary options trade market.
How Do the Robots Work?
The primary mode of operation of an automated trading software is to combine auto-trading with a signal service. Afterwards the software attempts to pinpoint several profitable trade opportunities and places trade automatically once it locates a promising one. Interestingly, this mechanism is a step ahead of the signal services and the software places trade as well. Different robot programs offer varying risk management capacities, whether it’s about fixing the spend limits every day or hindering any losses. Although, the fact that all of this becomes automated, substantially enhances the overall financial risk for traders.
Another category of binary options robots can be regarded as a ‘self-build’ genre, that is gradually picking up momentum and popularity. With this methodology, the brokers often equip the traders with all the resources and abilities to configure their own automated programs, customized to their unique needs and preferences (all by themselves!). The primary aim is to simplify the automation and enabling the users (who in this case are the traders) to make use of ‘drag and drop’ features and incorporate various technical indicators within their setup. Eventually, it becomes a program tailored to your needs.
One might ask ‘why brokers might want to promote the automated robots?’. The answer is all in numbers…the automation generates a much larger trade volume and minimizes risks for the brokers. With all these power packed features, ability to generate huge trade volume and amazing automated algorithms, it seems like a perfect Binary Options Trading dream. However, anything that becomes a ‘perfection’ in trader market must be dealt with greater caution.
We can’t talk about automated trading without referencing Forex robots. As much as this is a binary options website. In terms of automated trading, Forex is always best. We rely on two Forex systems for all of our automated trading, and passive income.
These are those two:
What to Look for in Robot Settings?
One of the crucial aspects used within binary options robots are the indicators or settings that would determine the future success or failure of a strategy. When you are comparing different firms, it is good practice to start with the flexibility and number of available parameters or settings in a binary options bot. Undoubtedly, the most promising settings would depend on the individual trading strategy, however, one must never overlook the fundamental parameters. Two of the most basic ones that a lot of traders might overlook (if their desired timeframe and size are available) are, expiry-time and trade-size. Some of the programs would enable settings for money management as well. So, there a lot of options out there in the market but to pick out the best one you need to be observant about the type of parameters and setting features that they hold.
While considering and comparing different firms, see to it that your top picks are offering a virtual trial or demo account. This is a great option to avail because you would be able to alter certain settings, locate a money management strategy and put it to test. Some of the best trial accounts are open ended and topped up by the brokers (in case the balance runs out). Before stepping into the automated trading within the binary options trade market, you must exercise caution as the market segment is infiltrated with scammers as well.
In the comments below, share your experience with the binary options robots and any tips to use them to your advantage in the trading game!