Robots and signals offer an easy way to trade binary options. Especially new traders are looking to avoid letting their inexperience cost them money by losing trades are fascinated by the idea of either completely automated trading with robots or getting valid signals to trade by using a signal provider.
Still, when signing up for many robots or signal providers, there are some very important points to consider to not waste your money on a useless system. This article will explain these points to you and help you pick the right robot or signal provider for you.
Signal providers will use their own form of market analysis to generate predictions about which binary options to invest in with which expiration time and share these predictions with you through text messaging or Email. Robots take this approach one step further. They create their own signals and invest on them completely automatically. With a robot, you can automate your entire trading process.
It can be a daunting task to find a Robot or a Signal Provider that are both trustworthy, safe and good at what they do. That is why we have done the work for you. In our lists we have gathered the best of the best when it comes to both Robots and Signal Providers. This means that you can feel secure in just picking a provider from our list below.
Many robots cost as much as $250 or even $5,000, and signals can easily come to $100 per month. If you spend that much money, you have to make sure you are getting a valid system. Although most robots and signals providers are legitimate businesses, double check their systems before you order anything from them. Most importantly, they have to disclose the way they are generating a signal or their robot works.
You want to avoid paying a lot of money for a signal provider or a robot that uses only one or two methods you could have easily used yourself. If a robot trades simple moving average crossovers, for example, there is no point in paying a lot of money for it.
At the same time, there are some signal providers or creators of robots that cling to an unproven or improvable method of market movements. Remember that technical analysis has to generate measurable results. Otherwise, why should you pay a lot of money for a robot or signals that may or may not work?
A robot will manage all aspects of your trading. That means the robot will also choose how much money to invest for each trade. Since money management is just as essential to your success as your trading strategy, make sure to check whether the robot uses a small fixes percentage of your total capital for each trade and which other money management rules are in place.
A robot without a good money management may only work with a certain amount of money. For example, if a robot always invests a fixed amount per trade, you will not be able to make more money once your bankroll increases. Conversely, if your bankroll should be small, maybe due to a losing streak or because you are just starting out, investing a fixed amount may ruin you if your robot loses a few trades in a row.
A system’s ability to work with smaller and larger bankrolls equally well is called scalability and should be a major concern of you when choosing a robot.
Some robots may have a sophisticated and well-defined money management system, but that money management system only works for smaller or bigger bankrolls. Make sure that your robot is designed to work for every type of bankroll, big, medium, or small. Especially new traders staring with a small bankroll of just a few hundred dollars could get into deep trouble otherwise.
Some trades prefer trading a special type of assets or maybe even a special asset. Most signal providers only offer a very limited number of assets and asset types. If your signal provider does not offer your favorite asset or asset type, you might be in for a nasty surprise. Before choosing a provider make sure to check whether he offers signals for the assets you want to trade.
Similarly, most robots are designed to work with a special group of assets. If you do not like this group, you should choose a different robot.