I had never heard the term binary option robot until a few days ago. I was intrigued. Aside from my first humorous visions of actual robots trading Binary Options I was not that surprised by what I found. Robots are nothing more than signal providers and auto-traders, more specifically the software that makes them work. A rose by a different name, almost. Robots are a little more advanced than a simple signal service and are a very unique form of trading that encompasses many different types of tools. Automatic trading is nothing new to the investment world, just something new to Binary Options.
The most marketable and easy to sell product in this word is… the DREAM; dreams of a new house with a swimming pool and a two car garage, dreams of a famous actress as your girlfriend, a private jet or a private exotic island or just the dream of financial freedom, without all the flashy things, but freedom to do whatever you want and be your own boss. In our constant attempt at fulfilling our dreams, we turn to trading and more specifically, options trading. But some of us turn to the trading software advertised everywhere these days, with claims of phenomenal and quick profits. Can this software really help us or is it going to be the beginning of our trading account’s demise? There are two main types of trading software. Let’s go a little deeper and talk about each one.
Binary Trade software
The internet is full of trading software (trading robots, expert advisors, etc) that you can purchase and then apply it to your MT4 trading terminal. After the implementation of the software, you will receive graphic trading advice in the form of up or down arrows printed on the chart, or a pop up alert or even in some cases, an email delivered to your inbox just in case you are not in front of your PC. Cool, eh? Now the next step is pretty simple: go to your Binary Options platform and trade according to the signal you got from your Forex trading software. Needless to say that if you get an Up arrow on EUR/USD, you will select Call on EUR/USD on the Binary platform. That’s how simple using software for trading can be. The necessary thing is to find a reliable one. Ok, now let’s talk a bit about the other type of trading help.
Binary Signal providers
Usually signal providers are expert traders that are willing to share their actual trades in real time with you, in exchange for a fee of course. You didn’t think it was free, did you? These guys usually work through a website where, once you become a member, you can see their signals/trades. Another way for them to provide you trading information is through software that alerts you about their signals. Once they place a trade or give a signal, all you have to do is to mimic their signal on your Binary platform. Software was developed that automatically copies the signal on to your MT4 platform, but as we know, that is not helping with Binaries since they can’t be traded on MT4. We don’t know what the future brings, but I’m sure we will soon see this kind of software adapted for Binary Options.
That’s a description of the main types of trading assistance available at the moment and how you can use it. But let’s assume that certain trading software that you purchased works and gives you nice positive returns. Most of these trading programs are based on the “Black Box” principle, meaning that you don’t know how they actually work and the logic behind the signal/alert and if by some reason you are left without your precious software, you don’t know anything about trading. If you are using a signal provider, again if for any reason he stops giving you signals, you will be left with no knowledge and cannot do it by yourself. The worst that could happen is to come across a scam beautifully dressed as a legit system; that’s when everything starts to suck and that’s what we have to avoid. If you decide to copy the trades of an expert/signal provider, try to find out everything you can about him and verify his credentials; find out if what he claims about his trading success is really true. If you come across a software or signal provider that brings good results, test it on a demo account. Let it run on a live account and if it makes you money… then by all means, don’t stop using it just because it might stop working sometime in the future. What can be easier than taking trades based on the signals of an actual expert or taking trades when a software that is proven to work shows you an up or down arrow? And why stop? If there comes a time when the program/expert starts to give bad signals, then decide your new course of action, but until then, keep bagging the profits. However, I would suggest using conservative money management until you’re sure it’s reliable. Some of you might think that you are not a trader because a program or an expert is holding your hand, telling you what to do.
What is a Binary Options Robot?
Let’s Define a Binary Options Robot: A Binary Options Robot is an automated trading software for binary options. The software constantly provides Binary Options Signals and trades them automatically on your Binary Options Broker account.
In order to fully explore how robot trading works I started with a simple Google search for binary options robots. I chose the best looking result from the Google search engine and this is what I found. “WhateverRobot.com” (not a real software of course, I left the real details private) is an automated signal service provider and binary options robot. This website is a service for binary traders that places trades automatically into their accounts, similar but not quite the same as copy trading. When you copy you choose a person to follow and copy their trades. A binary options robot is a program that literally takes over your account, can you believe that!
It may sound crazy, but it’s true. One type of robot is a third party program that you download onto your computer. In order for it work you must log into the robot AND have your Binary Options account open as well. The robot program detects compatible trading platforms and takes control. Any signals generated by the service are picked up by your robot and then traded in your account. The robot enters trade information like asset, amount, direction and expiration. It then clicks the enter button and your trade is set. Hopefully it’s a good one.
Another type of robot is much more useful to today’s social copy trader. These are also known as EA’s, expert adviser’s. These programs can be used with MT4 and other types of charting software to generate signals based indicators and strategies commonly used today. This type of robot can be used for copy trading, you can follow the signals as they appear if you want too, but you can also use them as a basis for learning. Choosing agood metatrader expert adviser is the key, one that you know is good and one that you can use as the starting point for a strategy. Add to it a set of rules and money management and you are halfway to becoming a binary options high roller.
Why Robots Might Not Suck
Robots might no suck because they can take the hassle out of trading. The robots are a signal service at heart so if you choose a really good one it stands to reason that profits will soon follow. Anything that can legitimately enhance my trading and provide sustainable profits doesn’t suck in my opinion. The caveat here is that robot providers as a group are just as likely to have a losing streak as anyone else. The best ones and only ones that I use are the ones that generate signals based on standard and accepted technical analysis techniques.
Are Binary Options Robots a Scam?
Some robots are definitely a scam, no doubt about that. First, you have to know my opinion, and the general opinion of BinaryOptionsthatSuck.com about any automated robot or a signal service provides; we don’t like them, unless they provide a legitimate learning experience. At no time is it a good idea to let someone else trade your money for you, especially some robot you find on the internet.The worst robots are the ones that take over your computer. It’s like downloading a virus on purpose! Why would you want to do that? Even though you can still use your computer while the robot is working you never know what kind of hokey pokey nonsense is going on.
Yet, I don’t want to be too harsh against the businesses and people involved, especially those who are really trying to do a good job but come on people, learn to trade for yourself. If you are using Binary Options you really need to do it yourself, this is not investing it’s trading. If you want someone to take your money and lead you to profits, invest in a real retirement plan.
One more thing. Binary Options auto trading robots cost money. You have to subscribe to the service and pay a fee, and for what? So you can let someone else lose your money. If all you want to do is lose you might as well save the dough you would spend on a automated robot and have some fun yourself. There are too many free sources of tips, strategies and signals not to mention social trading platforms like CommuniTraders to waste any money paying someone for it. Check out this “famous” AutoTrader for Binary Options review (link above) and see for yourself.
To the creators and operators of robots my hat is off to you. You have created a really remarkable and amazing way to trade the binary options markets. To the potential users of a robot, don’t trust them too closely. In many cases they are nothing more than the same old thing with a new twist. You should never let someone trade for you like that. If you need a place to get started an EA is a good place to do it, just remember to build it into a real trading system. Do the work, put in the time and the rewards will follow.
If used carefully, trading software can be profitable, assuming you find the right one. By “used carefully,” I mean observed on a demo account for enough time and used conservatively when on live accounts. Also, try to learn something in the process, try to see the logic behind those trades, don’t just follow them blindly. Each one of our experiences, good or bad must leave us with a lesson learned and using trading software or signal providers can help with your trading, but… beware of scams! There are programs that perform poorly but are not scams and on the other hand, we have low life scammers that know their software is crap and still try to sell it to the unaware novice that would do anything to reach his dream of a private island in the tropics.
To learn more: Binary Option Robot and software | forexing24