How to trade successfully binary options robot guides
How does it work? First, the trader sets two price targets to form a price range. If you are familiar with pivot points in forex, then you should be able to trade this type. This type is predicated on the price action touching a price barrier or not. If the price action does not touch the price target the strike price before expiry, the trade will end up as a loss.
Here you are betting on the price action of the underlying asset not touching the strike price before the expiration. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration Double Touch or not touching both targets before expiration Double No Touch.
Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels. Some brokers offer all three types, while others offer two, and there are those that offer only one variety.
In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set. Most trading platforms have been designed with mobile device users in mind.
So the mobile version will be very similar, if not the same, as the full web version on the traditional websites. Brokers will cater for both iOS and Android devices, and produce versions for each.
Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are.
So, in short, they are a form of fixed return financial options. Call and Put are simply the terms given to buying or selling an option. As a financial investment tool they in themselves not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest. Our forum is a great place to raise awareness of any wrongdoing. Binary trading strategies are unique to each trade. Money management is essential to ensure risk management is applied to all trading.
Different styles will suit different traders and strategies will also evolve and change. Traders need to ask questions of their investing aims and risk appetite and then learn what works for them. Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits.
So the answer to the question will come down to the trader. If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing: Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively.
The situation is different in binary options trading. There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes. This reduces the risk in binary option trading to the barest minimum. The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds. This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments.
A binary trade outcome is based on just one parameter: The trader is essentially betting on whether a financial asset will end up in a particular direction.
In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well. This is not the case with other markets. For example, control of losses can only be achieved using a stop loss. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable.
The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets. Traders have better control of trades in binaries. For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money. For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss.
The payouts per trade are usually higher in binaries than with other forms of trading. This is achievable without jeopardising the account. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout which never occurs in most cases. In order to trade the highly volatile forex or commodities markets, a trader has to have a reasonable amount of money as trading capital.
For instance, trading gold, a commodity with an intra-day volatility of up to 10, pips in times of high volatility, requires trading capital in tens of thousands of dollars. The payouts for binary options trades are drastically reduced when the odds for that trade succeeding are very high.
Of course in such situations, the trades are more unpredictable. Experienced traders can get around this by sourcing for these tools elsewhere; inexperienced traders who are new to the market are not as fortunate. This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders.
Unlike in forex where traders can get accounts that allow them to trade mini- and micro-lots on small account sizes, many binary option brokers set a trading floor; minimum amounts which a trader can trade in the market. This makes it easier to lose too much capital when trading binaries.
In this situation, four losing trades will blow the account. When trading a market like the forex or commodities market, it is possible to close a trade with minimal losses and open another profitable one, if a repeat analysis of the trade reveals the first trade to have been a mistake. Where binaries are traded on an exchange, this is mitigated however. Spot forex traders might overlook time as a factor in their trading which is a very very big mistake.
Binaries by their nature force one to exit a position within a given time frame win or lose which instills a greater focus on discipline and risk management. In forex trading this lack of discipline is the 1 cause for failure to most traders as they will simply hold losing positions for longer periods of time and cut winning positions in shorter periods of time.
Below are some examples of how this works. This psychology of being able to focus on limits and the dual axis will aid you in becoming a better trader overall. The very advantage of spot trading is its very same failure — the expansion of profits exponentially from 1 point in price.
They will simply make you a better overall trader from the start. To successfully trade you need to practice money management and emotional control. Introduction Video — How to Trade Binary Options These videos will introduce you to the concept of binary options and how trading works.
Here are some of the types available: Will a price finish higher or lower than the current price a the time of expiry. These can often be some way from the current strike price. Select the asset or market to trade — Assets lists are huge, and cover Commodities, Stocks, Cryptocurrency, Forex or Indices. The price of oil, or the Apple stock price, for example.
Select the expiry time — Options can expire anywhere between 30 seconds up to a year. Some broker label buttons differently. Choose a Broker Options fraud has been a significant problem in the past. Here are some shortcuts to pages that can help you determine which broker is right for you: Low minimum deposit brokers — if you want to trade for real without having to deposit large sums of money. Asset Lists The number and diversity of assets you can trade varies from broker to broker. Expiry Times The expiry time is the point at which a trade is closed and settled.
It may cross your mind that there are other ways to invest your funds without needing to be present or spend time making trades.
Investment funds are an excellent example of this kind of trading. However, one of the fundamental differences between investment funds and binary options robots is the charges they make. An investment fund will charge a fee which can make a significant dent in any profits; the binary options robots do not.
The binary options robots do not do this; some of them charge an initial fee and then no other cost whilst others are completely free for life. This means the profits generated are yours and makes it an exceptionally good alternative to other investment options. The majority of the binary options robots use complicated algorithms which have been created and are run through dedicated programs. However, there are some which develop their trades based on the analysis of experienced traders; the human element.
There are advantages to both types of automatic trading; to decide which is right for you it is essential to understand the difference:. It is not clear cut which method works the best; instead you should focus on which style of trading suits you best; providing you generate a profit stick with it! There are an increasing number of robots which can be used for free. Whilst some of these offer a very worthwhile service it is also possible that you will not be getting the service you expect.
The reason for this is very simple. A popular trading platform, known as Meta Trader has started to be used by those trading in binary options; the system is an adaption of a successful currency trading process. Using Meta trader will allow you to create your own robot; however, there is an issue with this. Currently most brokers do not support Meta Trading.
To combat this issue several businesses have started up which operate to fill this gap. You will need to pay a monthly fee which will allow the service to send the signals created by your Meta Trader robot to your broker and have them put into action. Almost all the robots operating through Meta Trader have small issues which will prevent them from providing long term success in binary trading.
This is generally due to a lack of experience as anyone can create a robot and you will not know how good it actually is. The majority of this type of software is developed by looking at past information. Whilst this is relevant to binary trading it is not the only element; the market is very flexible and there must be an element of forward thinking to allow the robots to adapt successfully and operate long term.
Finally, many of the signals between the Meta Trading robot and the broker are simply misplaced along the way. Combining this with the limited number of brokers who support this facility means you will miss a large amount of potential trades. Professional developers adopt a different approach and their systems are designed to integrate seamlessly with specific brokers.
This article deals with these professional firms. You have two options when choosing between the binary options robots; the first is to let the robot find the signals and place the trades.
The second is to receive the signals but for you to decide whether to execute them or not. You can even choose to run both systems; one robot supplying you with trades and the other waiting for your instructions to place trades.
Running two systems means making monthly or annual payments to both of them; which will affect your profits. This is generally considered to be a bad choice as there is no significant gain from this approach. Individual systems sending you signals are likely to lose up to half the signals in the transfer process; leaving you a host of missed opportunities. It is, therefore, better to choose one of the binary options robots and stick with it.
There are several ways of helping you to keep your initial funds and generate healthy profits. Unfortunately, not all robots operate in the same way and may place your funds at risk. The best binary robots offer a means to manage your money by basing a trade on the results of the last trade. This means that your investment will always be a percentage of your account balance and ensures you have money left at the end of the trading day. The alternative is a robot which simply uses the same amount of funds every time; unless you tell it different.
This can have a detrimental effect on your funds if you hit a non-profitable run. Unfortunately there is also such a thing as badly managing your funds which can be worse than not managing them at all! It is not whether the robot includes a money management scheme that matters; it is whether the scheme will benefit you or not. There are several distinct characteristics to each type of management:.
These are generally those which increase the amount you trade with as the value of your funds grows and decrease as your funds decrease. This prevents you from wiping out all your funds on one bad trade but allows your funds to grow at the fastest possible rate. This type of approach will quickly worsen your fund level by increasing the amount of funds placed on a specific trade after you have experienced several out of pocket trades. The aim would be to replenish your funds but could just as easily result in all your funds disappearing.
It is a fact of any type of trading that you cannot get it right every time. Managing your funds effectively will allow you to get through these patches and back to the profitable trades. Even robots without set management policies can be told a percentage of your account to trade each time; this will ensure you stay in the money. All you need to do is check your account regularly and adjust the percentage if required.
Often the best quality products cost the most and whilst this is true of binary options robots it is possible to get a good robot for either very little or free; providing you adopt the right approach. However, despite initially seeming easier it will quickly become more expensive than the lifetime option.
An added incentive to choose the higher one-off fee is that the majority of robot providers will allow you sixty days to test the product and obtain a refund if you are not happy.
This ensures you can put the robot through every test you can think of; if it does not perform how you expect simply return it for your funds back. This is an important guarantee and incentive; allowing you to test any of the binary options robots thoroughly.
As mentioned some providers offer a completely free robot; instead of you paying the fee your broker will. This is in keeping with modern business practices which reward those who introduce customers to their business. By signing to a broker through the robot they have introduced you and will gain a monetary incentive as long as you remain a member.
This works exceptionally well as you must have an account with an approved broker to use the robot. Even if you have an account already you will generally need to set up a second which is dedicated to the robot. This allows the robot provider to offer a good quality, free service to experience and new traders. The better robots use complicated algorithms to ensure they win more trades than they lose; an experienced trader can produce the same results. However, a robot can scan far more assets and movements than a human which will increase the amount of successful trades which are placed.
This will ensure a higher overall rate of return. To fully understand this you imagine a trader studying the market for four or five hours every day and placing five trades a day; getting positive returns on as many as seventy percent of them. However, a robot with the same approach will be able to trade for twenty four hours a day; potentially placing twenty four trades a day.
If every trade has the same amount invested then the better system would simply be the one which trades more. A trader with five trades a day will make trades a month and win seventy of them. The automated system would place as many as four hundred and eighty trades and win of them! If you use a free robot does that automatically mean it is a good idea? In general yes as you will benefit from these features:.
If these functions are included with a robot which you can access for free then they are certainly worthwhile! This can even allow you to test a robot without risking much of your money. It is possible to pay for the services of a binary options robot but is it worth it? In general the free robots offer the same services as the ones which you need to pay.
This means that a paid robot is only really beneficial to the following types of traders:. However, unless you fall into one of above reasons then it is advisable to start with a free binary options robot and test this approach out before committing any funds. As with any new product or system you will want to know that it works before you start investing significant amounts of money. Fortunately there are several methods of testing the binary options robots:.
It is essential to study review on sites like this one and on social media to gauge the response to a specific robot. People who have already tried the service and are unbiased will be the best ones to give you advice.
The majority of binary options robots will allow you to access their history. This will show you there trades they have made, their success rate and even the percentage returns they have generated. You can use the winning percentage displayed and times it by the total returns you have received from your broker.
Providing your calculation ends up with a figure higher than one then the robot will have performed better than your manual trades and generated a higher level of returns. Many of the robots will link with the demo account supplied by a broker. This means you will be able to test the trades a robot suggests without using any of your own funds.
If this is not an option then you can record the trades on paper and compare them to the market movements to see how successful a robot would have actually been. You can even adopt this approach for several days to be satisfied with the results. Of course, to do this you will need to access the robot and if you have paid for it you will want to complete your review within the sixty day grace period; ensuring you get your funds back if you are not happy.
Even after you have completed all the other tests you will want to start using the robot with small trades.