Binary Options & Trading Robots A Perfect Match

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker. Only For Experienced Traders!

Binary Options & Trading Robots: A Perfect Match?

Also known as auto trading or algo trading, robots can be used to place trades for you automatically based on instructions that you have given it. If specific market conditions are met, the robot will put in the designated trades automatically.

Many times, after you have developed a trading system, you are supposed to follow it religiously. If the indicators lined up, you need to make the trade whether you like it or not as you are supposed to believe that in the long run, it will pan out well. Doesn’t matter what your gut feeling is telling you, you are supposed to trade without emotions.

Guess what, a binary options trading robot is perfect for the job!

Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, in a highly consistent manner. A robot will not suddenly decide to make a trade simply because it feels like it. As the saying goes, never send a human to do a machine’s job.

Why Robots are Perfect for Binary Options Trading

Unlike other types of trading such as stocks or futures, binary options brokers do not charge any commission for placing trades. This means that placing a thousand $1 trades costs the same as a single $1000 trade. If you were to use a robot to trade stocks, the commissions payable to the broker for a 1000 trades will be a thousand times more.

Also, binary option brokers let you trade in amounts as low as $1. This greatly reduces the need to maintain a large account to ride out the bad trading days.

And because binary option brokers don’t let you trade on margin, there is also no risk of a sudden market move that bust your stop losses and wipe out your account, as in the case of those highly leveraged forex trading.

Do remember that while well-designed robots can help you make money automatically, on the flip side, badly design robots can also help you lose money equally fast.

If both strategy and execution are good, then the overall result will most likely be a success.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker. Only For Experienced Traders!

However, perfect execution of a flawed strategy will only bring about greater failure. So, if you are thinking that it will be easy, think again. You the human will still need to spend time researching and evaluating the best strategies to employ.

The good news is that these days, with modern technologies, you can always test your trading robots against historical data rather quickly and easily. While past performance also does not 100% guarantee future performance, it is still a pretty reliable indicator.

Time to Retire? Not So Fast!

Having robots to trade on your behalf doesn’t mean you can now chill in the carribbean with a pina colada. It simply means that instead of trading, you will now take on the new job of managing and fine-tuning your robots.

Even the best trading systems will not give you very high win rates. As the payout for binary options is usually only 70 to 80%, your trading system needs to generate a win rate in excess of 60% in order to be profitable in the long run.

Still, the robot is not going to replace the human when it comes to designing a winning trading strategy. Artificial intelligence could but they are too expensive for ordinary folks like us. Only the big Wall Street firms can afford these high tech multi-million dollar trading machines.

So for now, if you are someone who can come up with a good strategy but unable to execute them properly, you will not achieve the desired result unless you can find someone to execute your strategy well. If that’s the case, a robot will come in handy.

Also, when it comes to using robots, always try to use the law of large numbers to one’s advantage.

So instead of using 1 robot to make $10 trades, I would rather use 10 robots making $1 per trade. This ensures that if one robot’s strategy is starting to fail, it will not cause you to lose all your money and you will have ample time to replace this non-performing robot with another more effective one.

Continue Reading.

What are the Main Types of Binary Options?

Learn how the One-Touch, No-Touch and Range/Boundary binary options differ from the common high-low viety and how to trade them. [Read on. ]

What Assets can be Traded using Binary Options?

Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. . [Read on. ]

Binary Options: Trading or Gambling?

Is binary option a legitimate financial instrument or just another form of gambling. [Read on. ]

Binary Options & Trading Robots: A Perfect Match?

Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency. [Read on. ]

Is Binary Options Trading a Scam?

Learn how you can get scammed when trading binary options if you are not careful. [Read on. ]

How to Select a Binary Options Broker?

With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage. [Read on. ]

Binary Options: Calculating Breakeven Win-Rate for a Given Payout

How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options. [Read on. ]

Main Types of Binary Options

Many binary option traders started off trading with the common high-low binary option. Once they are more experienced, many binary option traders will look to more advanced types of options to get an edge on the market.

Note that even the term binary option carries different meaning depending on where you reside. In this article, we are talking about the more popular variety, which is the european binary option traded outside the United States.

High-Low Binary Options

This is the most common type of binary option used by novice traders. Traders buy a call if they expect the underlying price to go up or a put if they expect the underlying price to go down.

One Touch Binary Options

When a trader purchases a one-touch binary option, a payout is earned when the underlying asset price reaches or surpasses a specific price barrier anytime before the option expires.

No Touch Binary Option

Conversely, for a no-touch binary option, a payout is earned when the underlying asset price does not reach or surpass a specific price barrier before the option expires.

Double One Touch/No Touch Options

With double touch/no touch binary options, there are two price barriers – namely the upper or lower price barrier – for the underlying asset price to either hit or miss in order to receive a payout.

Continue Reading.

What are the Main Types of Binary Options?

Learn how the One-Touch, No-Touch and Range/Boundary binary options differ from the common high-low viety and how to trade them. [Read on. ]

What Assets can be Traded using Binary Options?

Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. . [Read on. ]

Binary Options: Trading or Gambling?

Is binary option a legitimate financial instrument or just another form of gambling. [Read on. ]

Binary Options & Trading Robots: A Perfect Match?

Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency. [Read on. ]

Is Binary Options Trading a Scam?

Learn how you can get scammed when trading binary options if you are not careful. [Read on. ]

How to Select a Binary Options Broker?

With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage. [Read on. ]

Binary Options: Calculating Breakeven Win-Rate for a Given Payout

How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options. [Read on. ]

Binary Options: Trading or Gambling?

To answer this common question, let’s take a closer look at the definition of gambling.

“Gambling is the wagering of money or something of value (referred to as “the stakes”) on an event with an uncertain outcome with the primary intent of winning money and/or material goods. Gambling thus requires three elements be present: consideration, chance and prize.”

By the above definition, trading in binary options does indeed fall into the gambling category but so does every other form of trading such as stock trading or currency trading. In fact, so many things that we do in life can be considered gambling. For instance, you may think that the new job you got was a good thing because the salary is 30% higher but turns out the workload might be 50% more and the new boss has a terrible personality.

Binary Options Trading vs Casino Gambling

Upon closer inspection of this question, I suspect what most people are really asking is whether binary options trading is like casino gambling in which the odds are already fixed against the player.

I believe many people have this notion because of the many immediate similarities between binary options and casino games like blackjack in which there are only two possible outcomes:

  1. Your cards are higher than the dealer’s and you get paid or
  2. The dealer’s cards are higher than yours and you lose.

Furthermore, with binary options payout being comparitively lower at only around 70%, many people are wondering why not just play blackjack where your payout appears to be much better at 100%.

Random vs Non-Random Outcomes

When comparing these two activities, what most people do not take into account is that for casino games such as roulette or blackjack, the outcome of each game is entirely random and is not dependent on any external factor. However, in binary trading, the outcome is greatly influenced by real world events.

For example, when the BRExit event happened on June 23 2020, the British pound fell sharply. People who did their homework, studied the rise in nationalism across the European Union and predicted that BRExit would happen had a much higher chance of correctly ‘guessing’ which way the price of the British pound will go after the BRExit referendum vote.

However, in the case of casino gaming, there is simply no way the casino game player will ever be able to gain an edge in guessing the outcome of any individual game no matter how much effort he is willing to put in.

Observed Odds vs True Odds

Hence, in binary options trading, the true odds you will get is highly dependent upon how much information you have in relation to the bet you are making.

Conversely, for pure casino gambling, the odds are already fixed against the player and the house ensured that the player can do nothing to increase his odds of winning. The casino will take every measure to ensure this and even suspected card counting Blackjack players are quickly banned from their premises.

Continue Reading.

What are the Main Types of Binary Options?

Learn how the One-Touch, No-Touch and Range/Boundary binary options differ from the common high-low viety and how to trade them. [Read on. ]

What Assets can be Traded using Binary Options?

Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. . [Read on. ]

Binary Options: Trading or Gambling?

Is binary option a legitimate financial instrument or just another form of gambling. [Read on. ]

Binary Options & Trading Robots: A Perfect Match?

Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency. [Read on. ]

Is Binary Options Trading a Scam?

Learn how you can get scammed when trading binary options if you are not careful. [Read on. ]

How to Select a Binary Options Broker?

With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage. [Read on. ]

Binary Options: Calculating Breakeven Win-Rate for a Given Payout

How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options. [Read on. ]

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker. Only For Experienced Traders!

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Binary Options Guide For Beginners
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