Trading binary options carries certain risks. This type of activity, despite its apparent simplicity, involves conducting an in-depth analysis of the market condition and drawing up preliminary forecasts. Automated binary options trading helps simplify this task. Thanks to it, the participation of traders in this process is minimized. Using this trading method, you can increase the number of successful trades, but users must select the correct robot settings. This is the only way an automated bot will bring the desired result. That is, the success of trading when using such software directly depends on the settings.
Content:
- What is automated binary options trading;
- Advantages and disadvantages of auto trading;
- Features of robots for automatic trading;
- How to choose a robot;
- Popular types of bots;
- Is it possible to organize automatic trading without investments?
- Rules for setting up bots;
- Popular robotic systems;
- How to avoid scammers;
- Results.
What is automated binary options trading?
Auto-trading binary options refers to trading using robots. This type of trading differs from standard trading in that special programs analyze the market and carry out other operations. If necessary, users can configure them so that they independently open and close transactions in accordance with specified parameters. However, the effectiveness of such activities directly depends on what settings are entered. In particular, if the trader does not determine the moment when the program should close transactions, then most of the transactions will bring losses.
This means that trading with binary options robots also involves the use of specific strategies. But trading robots simplify many operations and allow traders to abandon market analysis. The programs independently monitor changes in the rates of financial assets and open transactions when appropriate signals occur.
The convenience of using automatic trading is that people can choose their own strategies. So, some traders resort to such software as an assistant, others completely outsource trading.
Advantages and disadvantages of auto trading binary options
Automated trading of binary options differs from standard trading in several advantages:
- All operations (analysis, opening transactions, etc.) are carried out automatically. Thanks to this, users do not have to constantly select trading strategies and conduct in-depth market analysis, which significantly saves time and speeds up trading. Such programs are capable of automatically finding profitable transactions and concluding them, bringing profit to the trader without his participation.
- Users can set any parameters. That is, traders independently determine the conditions upon the occurrence of which the robot opens trades. This also allows you to control the level of risks and, as a result, minimize losses when the market situation changes.
- High speed of processing trading signals. Traders, seeing suitable signals, take longer to open trades than automated systems. Often this determines both profit and loss. With auto trading, options are purchased instantly.
- The robot works around the clock while the relevant markets are open. Traders need time to rest, while robots work without interruption, which allows them to take the maximum number of transactions even when traders are not near the terminal.
- Trading without emotions. Another advantage of robots is the lack of emotions. Emotions often influence the decisions people make. Because of this, traders often make mistakes by exiting a trade prematurely or, conversely, opening a potentially unprofitable order. Robots work according to a given pattern and continue to trade after reaching the specified parameters for closing operations or until the account is reset to zero.
Despite the pronounced advantages, automated trading has certain disadvantages. This is due to the disadvantages of this type of binary options trading:
- Bots act according to pre-made templates. Trading any financial assets involves certain risks arising from unusual market behavior. If the market situation changes greatly, the bots “get lost” because they act in a stereotyped manner.
- The process is not fully automated. The developers of such bots insist that these programs are capable of performing all operations. However, in practice, the trader must independently determine the rules of “behavior” of the robots and configure them accordingly. Users are also required to adjust previously entered parameters in accordance with the market situation. That is, the trader is not completely freed from the need to conduct analysis.
Features of robots for automatic trading of binary options
Here is the basic information that characterizes trading robots:
- Bots can be considered as universal trader assistants.
- The operating principle of trading robots is based on various trading strategies.
- After setting trading rules, robots use these rules to buy options with a given expiration .
- Thanks to fast information processing, trading bots quickly make decisions.
- A robot can be made for any strategy, but most often it is some kind of standard trading system. The algorithms of such systems independently determine when to open trades, but the initial parameters are set by the trader. Before trading begins, an analysis is performed (it takes no more than a minute), and based on the results obtained as part of this “research”, the robot begins to buy options.
How to choose a binary options robot
There are many offers on the Internet for the purchase of a robotic program for trading digital contracts. However, many of them are ineffective. Therefore, when choosing a robot, it is recommended to pay attention to the following criteria:
- Real reviews from traders. When choosing a bot, it is important to consider the opinions of people who have used it. Thanks to this, you can learn a lot about its operation, including whether the robot works and how effective it is. It is also important to focus on negative reviews. Often, developers of new programs buy comments from users. Therefore, there are many positive reviews on the Internet about robots that actually do not bring results.
- Availability of a trial period. Even efficient robots can cause losses, so it is important to be able to test it in operation. In addition, we cannot exclude the possibility that the developers did not conduct a comprehensive analysis of their own product. Therefore, before purchasing robotic systems, they should be tested in practice. There is a trial period for this.
- Types of trade. Many systems use primitive techniques that either do not bring results or are only suitable for playing with financial assets. The basis of most of these bots is the Martingale method , which is criticized by professionals due to high risks and losses. In the short term, such robots can show very high profits, but in the long term, in almost 100% of cases they lose the deposit . Therefore, it is recommended to use Martingale bots only if you have a lot of capital. This is explained by the fact that the trader needs a certain amount of funds for “drawdown”.
- Price. It is important to consider that if robots are cheap, then their effectiveness is reduced to zero. High-quality products are always valued at large amounts.
Beginner traders should avoid robotic programs at first. It is important to learn how to trade using technical analysis . Then, having understood this issue, you can begin selecting bots. Successful systems for automatic trading of binary options must use different methods of technical analysis and several indicators when making decisions. This improves trading efficiency.
Popular types of bots for binary options
Robots for auto-trading binary options are divided into several types, taking into account the nature of their work:
- automatic and/or semi-automatic;
- a separate program or addition to a specific trading platform;
- universal (suitable for any broker).
Bots are also divided into 2 types, taking into account user involvement in their work:
- Fully automatic. Bots of this type independently receive and analyze trading signals and make a decision to conclude a deal. Traders do not participate in such operations. These bots are dangerous because if they are configured incorrectly, most trades will be unprofitable.
- Semi-automatic. In this case, the bots make a decision to open a transaction only after the trader’s approval. This trading format simplifies analysis, but increases the risk of losses due to erroneous signals.
In addition, there are paid and free bots on the market.
Paid bots can be both cheap and expensive, but in both cases they will most likely be ineffective tools, since it is unlikely that anyone will sell a profitable robot. Their creators most often make money from selling such products rather than from trading.
Free options can have wide functionality and many settings, but almost always they work on specific trading strategies ( moving averages , Stochastic Oscillator , MACD and others).
Is it possible to organize automatic trading without investing in binary options?
Many brokers offer to start trading binary options without investment. In particular, some companies provide a welcome bonus , which significantly increases the size of the deposit upon first deposit. In this regard, among novice traders there is a question whether it is possible to organize automatic trading of binary options without investments.
But in reality, developers will not create a complex product that uses different algorithms to perform analysis and give it away for free. At the same time, as noted above, there are many programs on the market that can be used for a certain period without payment.
Also, for automatic trading of binary options, a certain amount will be required to open transactions. That is, the broker will not be able to avoid the need to replenish the balance. Moreover, the deposit amount must be large so that unprofitable transactions (which will definitely happen) do not “waste” all the money in several transactions.
Rules for setting up bots for binary options
The procedure for setting up such bots is determined by the trading tactics that the trader uses. After purchasing and installing the program, you need to select one of the built-in templates or enter your own parameters, based on which the bot will analyze and make a decision on opening transactions.
When setting up bots, you need to select a trading system. This is also done taking into account the personal preferences of the trader. As a result, you need to install:
- maximum and minimum transaction amount;
- daily loss limits;
- the time interval during which the robot operates.
After making the described settings, you can start auto trading binary options. However, when entering parameters, you need to take into account the risks and profit you plan to receive. In particular, it is important to pay attention to this when setting the maximum transaction amount. If the risks are not taken into account, then one operation can bring a loss comparable to the size of the deposit. It is also not recommended to completely automate the process. To avoid mistakes, you should monitor the bot's decisions. If errors occur in the operation of the system, you need to make adjustments to its settings.
Popular robotic systems for binary options
Many market professionals speak positively about two bots for auto trading binary options:
The first program is a set of strategies that have proven to be effective. This development is available only to clients of the PocketOption broker . Therefore, the program is well adapted to the trading platform of this company.
PocketOptionRobot is a special extension that can be built into the Google Chrome browser. The program operates in a fully automatic mode, independently making decisions about opening or closing transactions. The advantage of PocketOptionRobot is that this product supports customization options. That is, traders can add their own strategies to the program, which increases the effectiveness of signals in different market situations.
The Robot Advisor for MetaTrader 4 is completely free to use. This program is designed for automated trading of currency pairs , including dollar, euro, yen and others. You can carry out transactions using such an advisor within the expiration period of 15-30 minutes.
The operating principle of this robot is based on the readings of an exponential moving average, the period of which is specified in the settings. Above it, more curves are formed at a distance obtained taking into account the indicators of the ATR indicator. The last period can also be set in the settings.
The robot automatically buys a Call option if the price chart breaks the upper curve and one of the oscillators taken into account is in the overbought zone. A deal with Put options is carried out under reverse conditions. That is, the price chart should break through the lower curve, while the oscillator line should fall into the oversold zone.
The robot assistant uses CCI or WPR as technical indicators. This program has a built-in special filter that protects users from opening unprofitable transactions in conditions of a sharp rise in prices or a decrease in the number of transactions concluded (sedentary market).
How to avoid scammers
Some developers offer automated systems only for the purpose of illegally taking funds. Such products are not useful and almost immediately lead to losses. To avoid buying fraudulent robots, you should consider several rules:
- After launching the bot, you need to control how it makes decisions and opens transactions. This is especially important to do after purchasing new robots. You can avoid fraudulent systems if you independently analyze the received signals and evaluate the effectiveness of decisions made by the program. If the percentage of successful trades concluded by the bot is high, then you can switch to automatic binary options trading.
- Automated systems are not able to always make only the right decisions. Built-in algorithms cannot correctly assess the market situation with 100% efficiency. Therefore, traders should not fully automate trading. In particular, users must always consider the risks involved in each transaction. Even the most effective bots are profitable 85% of the time. But this is the optimal result. Programs are not a way to take into account all emerging risks, so in practice the profitability of automated systems is lower.
- The trader must independently calculate and incorporate risks associated with macroeconomic situations. You also need to determine your own trading sessions during which operations can be carried out. Automated systems are not able to take into account these factors, which directly affect the behavior of market participants.
In addition, not all brokers allow auto trading of binary options. Therefore, before purchasing such programs, it is recommended that you familiarize yourself with the trading rules on a specific platform. There is no way around this ban. A broker who detects illegal automated trading will block the money on the deposit, closing the possibility of withdrawal.
Results
Automated trading systems, when properly configured and worked with, help you make money on binary options, while reducing the time for analysis. However, such developments are not always effective. And some of them are created just to extract money from people.
You can avoid this if you read reviews about it from real people before starting to work (or buy) with a robot. It is recommended to interact with popular systems that many people use. This shows that it is effective. In addition, it is easier to find reviews on popular systems.
At the same time, when reading the comments, you need to remember that many of them may have been purchased. Therefore, it is important to focus on negative reviews.
Effective systems are those that use technical analysis and several trading methods when making forecasts, not limited to just one (mainly Martingale). If this rule is not followed, then trading will turn into a game where success will depend only on luck.
When choosing bots, you should give preference to those that have a trial period. This allows you to test the program in practice. Also, you should not buy only the cheap or expensive product. Both options may be ineffective.
See also:
What novice traders need to know about binary options
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