Binary options robots or “bots” are becoming increasingly popular. Auto trading software has attracted many traders new to binaries. However, since it is inherently risky, you should fully understand binary trading before considering robot services. Here we explain how trading robots work, review the best services, and explain what you need to know when comparing binary trading robots.
We explain in detail how and where to get a demo account and why the risk is greatly increased when using automated trading.
It is highly recommended that you fully learn binary trading before considering a robot service. Even if it’s marketed as such, it’s not a good choice for beginners.
Best Binary Options Robots
What is a trading robot?
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A robot is software designed to identify and analyze market signals, find suitable trades, and automatically execute orders without human intervention.
Robot Review
The presence or absence of a trade all depends on whether market conditions meet the rules and parameters defined by the trader. Trading bots are not ‘intelligent’. It just executes commands predefined by its creators.
This automated trading system (ATS) has been making headlines for some time. Volatile price movements are often blamed on trading bots. From Wall Street to London, this form of trading is dominating the market.
Bot Description
Robotic software and automated trading algorithms combine signal services with automated trading. So, the software identifies profitable trades and then places the trades automatically. This automated element takes signal services to the next level and places trades instead of actually leaving it to the trader.
The MetaTrader (mt4 or mt5) platform is particularly effective at allowing you to receive signals via the ‘Expert Advisor’ feature. Here you can create your own alert system by setting the parameters that your unique Expert Advisor will follow. Alternatively, you can download programs from elsewhere and simply drag and drop them into the interface to get them to work. .
These systems offer different levels of risk management, from stop losses to daily fixed spend limits. However, the automated factor increases the trader’s financial risk as a whole. The feedback and opinions we receive usually focus on whether or not risk is hidden before traders open an account. Fully understand your financial risk.
self build
There is also a growing trend of brokers giving traders the ability to configure their own ‘bots’ or automated trading systems. They simplify the process, allowing traders to “drag and drop” technical indicators into the system. With the best custom robot feature, traders can try out the robot risk-free by operating it on a demo account.
Brokers want to promote the robot because it creates more trading volume, thereby reducing the risk for brokers. They can be great tools for traders as well as in binary options. The promise of profit is an immediate ‘red flag’. Like binaries, robots must be fully understood before use, and it is not a path that guarantees profit.
Auto trading
Auto trading or trading via robots has several advantages.
- Auto Trader never sleeps
Online brokerage platforms allow you to trade 24/7 from any device of your choice. But of course – you can’t be constantly online. That said, even if you have useful deal notifications delivered to your phone, missing out on possible opportunities is always an annoying reality.
The robot is always on standby. As long as an opportunity arises that meets the pre-programmed criteria, the robot will make that trade in any amount of time. - Software doesn’t get emotion
Robots aren’t crazy chasing losses or deviate from strategy. It acts fervently according to the standards it is set to follow. - Robots are not overwhelmed
All markets are open and there are many opportunities. You may feel tired and have trouble making mistakes. For robots, none of this matters. You can process large amounts of data instantly and take the right action at the right time, regardless of how ‘frenetic’ the market looks.
Similarly, car trading has some downsides.
- Robot does not respond
If the market is affected by an external event, the robot will continue blindly following the given setup. Common sense does not apply to robots. - They often miss sales
Robots cause fraud. The scam section below highlights how to spot this, but automated elements can suggest that dishonest services make “easy money”. That’s not true. - danger
Increased automation means loss of control. While many risk management techniques can be applied (such as stop loss and max loss), there is no doubt that the risk increases.
Scams
The automated nature of this trading style is at risk. When a trader hands off a trade to someone else, the level of risk increases significantly. Our Scam’s page (including a list of scam services) details some of the red flags to find, but it’s especially crowded with robots and automated trading scam operations.
Some reasons are:
- Newbie Traders – Car trading software is often geared toward newbie traders, or those who don’t have the time or knowledge to trade themselves. This group is probably misleading, so we target it.
- Easy to blame traders – Link to the first point. Dishonest providers simply say that their software is misused and therefore not faulty.
- Control – When a trader controls someone else’s trade, it’s very easy to say that money is lost on the trade.
Warning signs of scams include lack of transparency (outcomes of odds that cannot be verified), forcing users to use certain brokers and most obvious – promises of guaranteed or very high returns. If it were easy, everyone would. Be very careful if proceeding with a car dealer. The risk of fraud is significant. Here is the warning display checklist:
- Get Rich Quick Marketing
If a service promises big profits with little or no effort, it may be a scam. Similarly, phrases like ‘zero risk’, ‘100% win rate’ or ‘easy money’ should be considered outright lies. - cold call
Legitimate services don’t cold call. - Management account
It is a very bad idea for someone to trade for you or for your money. Even with automated trading and robots, you need to be in control. - Fake Bonus Terms
Some bonus terms include a lock on your first deposit. Check the terms and conditions before cashing out. - Sales Funnel
Some robot schemes force you to open an account with a specific broker. These are generally not the best option and are often unregulated and unreliable. - Free robot service that is not free
It is not free if you have to make a deposit to sign up with a broker and receive signals. Free service requires no deposit.
Blacklist services that pretend to be signals and auto trading include:
Brit Method/Jason Taylor
copy buffet
millionaire blueprint
Ultimate4Trading
QuantumCode
These should all be avoided as they promote binary options as an easy way to make money.
Settings
The settings or indicators used within the robot are very important. They determine the success of your strategy. The number and flexibility of settings or parameters within a robot platform is a useful comparison factor when judging different companies.
The best settings will depend on your individual trading strategy, but the basic parameters should not be overlooked. Trade size and expiry time are two simple settings, but traders may forget to check if the size and time frame they want to use is available on the comparing robot.
Moving averages and volumes are widely used indicators, and almost any candlestick pattern can be set as a signal. Binary.com’s self-built bot offers the most flexible setup. Some of the poor services they don’t provide. Some programs also offer money management settings. Martingale is best avoided, especially for beginners.
Demo accounts
Better companies offer free demos or virtual accounts to try out their services. This allows traders to modify their settings and find a money management plan that works for them. The best demo accounts are opened and topped up when the balance is depleted.
Some demos may require a software download, but most do not. Your login details will be sent to your real money account at time of upgrade and if upgraded. Many providers offer mobile apps, most of which are compatible on Android, iOS (iPad and iPhone) and Windows.
Review Binary Bot at Binary.com
Binary.com also offers the ability to design and create automated trading bots. Binary.com is licensed in the UK and Malta but is based in Malaysia and is particularly popular in Indonesia and Singapore.
Often referred to as the advanced trader’s broker, Binary.com offers a series of ‘advanced platforms’, including the ‘Binary Bot’ platform, which provides a ‘toolset’ for users to create automated tool software algorithms.
So, this platform enables self-build automated trading tools, but again for more advanced clients, as is the case with this brand. The tools and settings available provide more depth than rival brokers. This allows users to target more complex strategies. As a result, it can lead to more precise and specific transactions.
Binary Bot fits nicely into the rest of Binary.com’s look and feel. Some of the distractions of other platforms have been removed and replaced with the depth and functionality typical of the brand. Learn more about the trading platform in our Binary.com review.
