People taking out time from their busy schedule is a big issue even if they are interested in investing in binary options. People often have their day jobs and cannot invest time in trading even if they want to earn some extra income using this profitable investing option.
In addition to it, lack of knowledge also works as a major deterrent for people who want to start trading.
The best solution for such people is to use binary options robots since these fully automated trading robots accurately trade on your behalf, reduce risk of losses, increase return on investment and relieve you from having to learn all the intricate details that are otherwise necessary while you trade manually.
Table Of Contents
- What are Binary Options Robot?
- Why use binary options robot?
- How Does Binary Option Robot Work?
- Advantages of Using Binary Option Robot
- Disadvantages of the Binary Option Robot
- Average Win-Rate with Binary Options Robot
- Required to start trading with Binary Trading Robot?
What are Binary Options Robots?
Binary options robot is a form of automated trading technique that trades in the market on your behalf and makes use of pre-defined methods to place trades.
The good thing about these trading robots is that your intervention is not required and they choose the best option based upon a specific algorithm.
These algorithms are created by expert traders after analyzing various financial charts and statistical data so that trading can be performed by the robots when the market is most favorable and chances of earning profit are higher.
The robots are also used for breaking down large trades into smaller ones so that it is easier to trade and also helps to reduce risk exposure.
The binary trading robots also make use of various systems to maximize the profits, these systems are:
- Classic System: This system lets the robot trade using same amount whether you are winning or losing.
- Martingale System: In this technique the trading amount is increased after a loss is suffered and then again reverted to original amount after a won occurs. As for example, if a loss occurs of $10 in any trade then next time the robot will perform a trade of $25.
- Fibonacci System: In the Fibonacci system the trade size is increased when a win takes place while it is reduced in case a loss occurs.
At the time of purchasing binary options trading robot you will have to check which of these systems does the software makes use of or whether it uses all the three systems.
Why use binary options robot?
A binary options robot is able to automatically open trades on the basis of analysis of different trading signals. Most trading robots have 2 components; one being the automatic trader and the other being automatic signal provider.
The benefit of using a trading robot is that it allows you to do trading 24×7 without having to sit all day long in front of the computer.
Another vital factor in favor of binary options robots is that they do not have any emotions which help them to take decisions objectively and this in turn exponentially increases chances of earning more profits.
In addition to it, trading robots utilize complex algorithms for determining the ideal expiration period, market direction, kind of asset to trade in and the best amount to invest so that chances of earning good profits can be improved.
How Does Binary Option Robot Work?
Normally there are many websites providing these binary option robots and you need to register with them and after paying the required fee you will be able to download the software.
This software can be installed on your computer as well as other devices and will only require an internet connection to function.
There are many binary options robots which are also used as online service wherein they are available on the website itself and you do not have to download any kind of software.
All you will have to do is login into your account on the website and start monitoring the robot.
After depositing necessary funds in the broker’s platform the robot will start trading on your behalf as per instructions provided by you regarding the trades to invest in and following various technical indicators such as MACD, Trend, CCI, RSI, Williams and Stochastics.
The best duration for a position is also decided by the trading robot based on the signals and can range from 1 minute to up to 60 minutes.
Advantages of Using Binary Option Robot
Let us now look at some of the main advantages of using binary options robots for trading purpose:
One of the advantages of using binary options robot is that the software can be used on all devices starting from desktop computers to smart phones and tablets. Thus you do not have to sit in front of the computer all the time to monitor the trading work.
The other good thing about binary options trading robots is that it considerably reduces the time you need to spend on market analysis to ascertain the best trades to invest in.
All the technical analysis work is handled by the binary options trading robot.
Experts as well as novices can benefit from using binary trading robots since expert traders get more time to utilize on making other investment decisions while novices can make use of robots to start trading and at the same time continue learning more about how to read various financial charts and learn more about trading successfully.
These binary options trading robots are compatible with a number of different trading platforms and work swiftly as per preset trading instructions.
The robots also relieve you from the headache of understanding complex chart analysis, which at times can be quite confusing for traders.
Another advantage of binary options trading robots is that they are quite capable of balancing as well as adjusting your portfolio according to the market changes.
The other good thing about these trading robots is that they trade as per fixed expiry time so that trading results can be improved.
Binary trading robots also immediately act upon positive trading signals this means that you do not have to worry about any delayed trades and missed opportunities. This will in turn mean better profits on each and every trade the robots works on.
The binary trading robots also allow you to have account with multiple brokers so that the earning scope can be maximized by using services of several binary option brokers simultaneously.
The auto-traders also have stop loss feature which automatically stops all trading activity in case the margin is reached so that losses can be avoided in case the market become volatile.
The trading robots also allow for reverse trading which you can use if you feel that the signals are not correct. If activated, this feature will instruct the binary trading robot to place trade absolutely opposite to the signals received.
As for example, in case the signal receives has a PUT (HIGH) instruction for EURUSD, the robot will instead do a CALL (LOW).
Disadvantages of Binary Options Robot
Despite its many advantages, binary option robots do have few limitations which are worth keeping note of while you contemplate using such a system for trading in binary options. Few such disadvantages are:
The main disadvantage of binary trading robots is that many of these robots are able to analyze only technical data and cannot comprehend fundamental data.
Due to this limitation in case prices are affected because of any adverse event or news, the binary options trading robots are incapable of anticipating it.
The trading robots are able to anticipate outcome of such events only after the event actually occurs. Thus if you want to safeguard yourself from chances of losses then the best thing to do will be to monitor charts manually at the time trading robot is functioning.
This strategy will help you to close a program as soon as you hear about a news release that can have detrimental effect on the investment you have made before it actually affects the prices.
Another disadvantage is that these trading robots are not free and you will have to pay good amount to purchase them. The cost can become a deterrent for some traders might be reluctant to make such expenditure.
Additionally, no software can be 100% accurate so apart from using the trading robot you will also have to upgrade your trading knowledge so that you can mix auto-trading using robots with your knowledge of how the market behaves to reduce the risks and improve chances on earning higher returns on investment made.
It is also worth mentioning here that few of the trading robots perform quite well in a specific trade size range but their performance goes down in case they are used on higher levels.
Thus as a trader it will be necessary for you to properly check the features of the binary options trading robot before actually purchasing it.
Average Win-Rate with Binary Options Robot
The best part about using these binary trading robots is that these can lead to as much as 80% winning trades across varying expiry times, thereby helping you to earn good returns on your investment.
This type of trading robots come with free trial period and money back guarantee in case you are not satisfied with the performance of the software, thus allowing you a lot of freedom in terms of which software you want to work with.
Steps required to starting trade with Binary Trading Robot?
If you are interested in starting trade in binary options with the help of trading robots then there are few very easy steps that you will have to follow. Let us look at them here.
Step 1: To begin with you will have to purchase the software, download it and then install it on your computer. Many traders are apprehensive about downloading any software fearing that their computers will be infected by a virus but it is not so.
Most of these trading software downloads are verified so that you do not have to worry about viruses.
In addition to it, many of the websites also upload their software on reputed download sites which thoroughly check the software for problems and virus before allowing the upload and by downloading from such sites you can be rest assured about their safety.
Step 2: Next step would be signing in and then running the trading platform you work on. The robot will automatically check the type of platform you are using and then connect with all the available tools as well as commands offered by the trading platform.
After the initial integration steps are completed, the robot will start opening profitable trades on your behalf without the need for any intervention from your end. The trading robot will be able to easily do trading with only pre-requisite that your computer remains on and there is a reliable net connection.
Step 3: Even if the binary options robots work on full automation, as a trader you will have to provide some instructions at the beginning for the trading robot to start following.
As for example, it will be necessary for you to provide details about the maximum investment amount that you will allow for any single trade.
This amount could be like 10% of your account balance and this type of measure will help to reduce the risk exposure you will have while the robots trades on your behalf.
Apart from this some of the other details you will have to provide will include the maximum daily trades you will allow, the assets to trade in and trading amount.
Thus as we can see binary options robots are quite useful for traders to automate the trading process and minimize the risks. These trading robots can operate all day long without requiring your intervention and help you earn good returns on your investment.
Binary trading robots are equally useful for experience as well as new traders since people will least amount of market knowledge can also use them to maximize their profits while experienced traders can use the time saved in making other investment decisions.
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