Binary options trading robots are programs that will make trades automatically on behalf of the trader. A good robot will only invest in a trade that it believes will end in the money based on technical data. There is a human element, which is the ability to set parameters and other features so that investments are only made according to the wishes of the trader. These can be adjusted at any time. Once the parameters are set and the program launched, the robot will commence to trading binary options on its own.
Robots, or bots, have been used in standard forex trading for quite some time. Bots designed specifically for binary options trading are relatively new. One of the largest benefits of these programs is that they can greatly reduce or eliminate the amount of time needed to perform technical analysis. They can also benefit new binary options traders who have yet to master the task of reading charts and graphs correctly.
One of the cons would be that binary options robots do not have the ability to analyze fundamental analysis. When news and current events impact the value of an asset, a bot would only be able to take action after the value shift has occurred. The bot would of course have no idea why this shift has occurred, only that it has. This basically eliminates the possibility of profiting from pivot points caused by events when using such a system.
Security can be a pro or con when using binary options trading robots. This will depend on the type of security that is offered by the program creator. Since the bot will be trading with the money of the trader, a high level of security is a must. There is also no room for glitches or other problems that could cause the bot to act outside the parameters, making incorrect investments that could prove costly to the trader.
Part man – Part Machine
Though new traders are often drawn to binary options bots, it is important to note that one must learn how to correctly set the parameters in order to avoid losing money. Some automated trading systems are more complicated than others. Binary options brokers are now offering simple platforms that are appealing to traders. These user friendly platforms have been highly successful and have cause bot creators to follow suit. Those who need a simple program are advised to preview or test different trading robots prior to making a selection.
There is a cost to use binary options trading robots. Since there is a price to be paid for their use, the trader will only want to use a bot that can offer a successful trade percentage of 51% or more. Ideally, this percentage will be even higher, as part of the profits will need to be spend on paying to use the automated trading system.
Binary options bots are not for everyone. Some simply cannot imagine allowing a program to trade on their behalf. Others are completely fine with allowing a program to do the work for them. Ultimately, each trader will need to decide if and how these systems may benefit them.