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.
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.
Are Binary Options Robots a Scam?
Some robots are definitely a scam, no doubt about that – check some of our reviews: NEO2 Robot and Copy Buffett Robot. 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.
Things you need to know to Avoid Signal Service Scams
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.
A Closer Look: The ROBOT Myth Debunked!
Who wouldn’t want a piece of software with a big red button that says START and when you press it, money starts to appear in your account? I know I’d like to have one of those. The bad news is that it doesn’t exist, or at least I haven’t found it yet but the good news is that everyone can have their own robot (or close to it). Here’s the deal: autotraders / robots are nothing more than technical indicators made to look differently and to give a signal. I am not a coder but basically this is how it works: an indicator (say MACD for example) moves above zero so the software opens a Call trade automatically. When MACD moves below zero, the autotrader opens a Put trade. Other types of autotraders simply print an arrow and emit a sound when the MACD moves above or below zero. Yea, those are not really autotraders because they don’t actually open the trade and instead notify you to open it but anyway the term is loosely used these days so you could say they fall in the same category.
So let’s recap: an indicator… indicates (that’s what they do, you know) a direction and the software (autotrader, robot, etc.) will translate that signal into an arrow and a sound or (if it’s more “sophisticated”) will open the trade on your account. But the thing is these autotraders are just as good as the indicator they are based on so actually you could be buying a MACD or the cross of 2 moving averages or any other freely available indicator. Sure, most of the autotraders and robots out there are free but they do come with strings attached so before you jump out your seat screaming “But the autotrader I am using was FREE!”, stop and think: was it REALLY free? Didn’t you have to sign up and deposit with a broker you don’t really like? Or maybe you don’t have anything against that particular brokerage, but if it weren’t for the autotrader, would you deposit there? Anyway, what I am trying to say is that all these robots – whether they open trades automatically or just give you signals to alert you – are nothing more than a gimmick used by brokers to make you deposit with them.
Most of the signals generated by autotraders are far from being correct and shouldn’t be all traded. Signals must be judged by the trader because not all Stochastic crosses (or MACD or whatever indicator) generate moves in that direction so if you trade them all you’ll probably end up losing money. There are hundreds of indicators that can generate a signal, but a good one is given by the right combination of multiple indicators. What that is, I don’t know. It depends a lot on your trading style and skill. You have to identify if you are dealing with a good signal or a bad one. Bottom line is: don’t think just because something tells you to go Up or Down, that signal must be profitable. You will hear all sorts of stuff like algorithmic trading, special and advanced indicators built-into the autotrader but come on, use common sense: if someone really had the secret to perfect signals, would they share it with the entire internet for free or for a few bucks (oh, and don’t believe that story about “only 7 copies left” either).
An Autotrader is Just as Good as the Trader Using it.
If you can correctly identify a good signal – and by good I mean profitable – then you can trade using robots (which, remember, are nothing more than indicators). Most signals generated by trading software are not accurate so it’s the trader’s job to find the good signals. Of course, to do that you need to be a skilled trader but if you are not that guy, the autotrader will not make you rich. In a way the trader is the autotrader – yea, I know that sounds weird – because the person, not the software must be the deciding factor. The indicator alerts you that it identified a potential trade setup. Whether you act on that signal or not is your decision to make. Of course, we have the software that simply places the trade without “asking” – that’s the worst kind in my opinion because you don’t have the possibility to pass on a signal, you have to take them all.
Bragging Rights and Super Performance
In order to get the right to brag you have to prove your performance, but all the creators of robots out there are simply skipping the step of proving anything. They figured: “Hey, let’s just say we are the best and some people will believe us, no questions asked.”. Sure, not all people believe the fantasy, but it still amazes me how many of them do. The thing is that some people love a good lie; they want to believe that it’s easy to make money and give their boss the finger, buy the house of their dreams and spend the rest of their life on holiday. We have already exposed one of these F.A.K.E. salesmen who try to appear what they are not: a supposedly experienced trader (35 years experience!!!) is nothing more than a paid actor, available to hire on Fiverr.com. So you can clearly see, the lies are true – can I say that? – or rather: it’s true they lie. Yea, that’s better. The fact is that most Binary Options Robots creators say that their software is the result of countless hours or work put in by serious traders with tens of years of experience under their belts, but in fact it’s just a program that generates random trades and – dare I say – bad trades. Have you ever heard of a guy becoming rich trading with a robot? I haven’t… at least not someone I can trust. But have you heard of people getting burned by X or Y robot? Just look at our Comments section, look everywhere online and you’ll see tons of people complaining how they got scammed by robot sellers. Maybe there is a good robot out there, but I never found one and I’d like to see some actual proof before buying it. For all I know so far, most Binary Options Robots work >like in this short video (below) and the bottom line is most of the times Zero.
Why Robots Might Not Suck?
Robots might not 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 are the ones that generate signals based on standard and accepted technical analysis techniques.
My Last Words On Binary Options Robots
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. Seeking the easy path often leads to failure. Encountered a Robot? Unsure about a signal provider? Visit our Make Easy Money Exposed Forums Section! You will find all the help you need from our team of professionals and the hundreds of other binary traders you will find there.