Binary options robots are automated trading programs that promise to make you money while you sleep. But do they work? In our binary options robots guide, we will answer this question and others. In detail, we will take a look at these questions:
Once you know the answers to these questions, you will be able to make an educated decision on whether to use a robot, which robot to choose, and how to use it.
Simply put, binary options robots are computer programs that trade for you. A robot can analyze the market, find profitable trading opportunities, and invest in these opportunities automatically. As a trader, you can control crucial settings of the robot, for example the investment per trade, the money management strategy, and the assets the robot monitors.
To get a robot, you have to buy one from a robot provider. There are plenty of robot providers out there offering hundreds of different robots, each of them approaching the market from a different angle and with a different strategy. This article will help you to understand how to identify the robot that is ideal for you.
To execute its trading decisions, your robot needs a broker. Not all robots are compatible with all brokers, in fact, most robots support only a hand full of brokers. This limitation is due to technical compatibility issues, which are not that different from a European trying to use their power plug in the United States and vice versa but are little more complex.
If you have signed up with a broker already, you have to decide how important it is for you to stay with this broker. Depending on your answer, you might have to search for a robot that supports your broker, which can be difficult if you are trading with a small broker only a few robots support. In this case, you would have to contact a robot provider’s customer support and ask them whether there is some way for you to connect their robot to your broker, or ask your broker’s customer support whether they know of any robots that work with their system.
As long as you trade with a trustworthy broker, you should always be able to find a robot that works with this broker.
Binary options robots provide a number of advantages that make them the ideal tool for some traders. Let’s look at each of these advantages individually.
1. Binary options robots allow you to automate your trading
The most obvious advantage of binary options robots is that they literally enable you to make money while you sleep. Instead of having to get up an hour early to catch up with what happened on the market while you were asleep and finding free time to trade, a robot can automate your trading completely. All you need to do is spend 5 minutes a day checking your robot’s settings.
This way of trading is a huge advantage for most traders. Many of us leave busy lives, trying to juggle work, family, friends, and hobbies, and finding time to trade can be impossible.
This statement is especially true since trading is a time-consuming task. You have to stay up-to-date with the market, and you have to invest at least two hours each day to trade. Since neither your family, nor your friends or your boss will be happy if you neglect them, and since you probably want to avoid becoming a loner, taking the time to trade is a difficult decision to make. Consequently, many aspiring traders decide to forgo binary options and rather do different things with their free time.
Robots present a way out of this dilemma. With a good robot, you can trade profitably and invest your free time in the way you like – you get some to invest for you while you enjoy your life. This appealing combination might be the number one reason why traders decide to trade with a robot – but it is far from the only one.
2. A robot can help you turn a profit from the start
Newcomers to binary options have a lot to learn. Short-term trading is fundamentally different from anything most of them have ever heard about the market, which is why have to rethink anything they believe to know about financial markets.
This process can take years. Just like nobody can learn an instrument in a few days of practice, trading binary options can easily require half a decade to master; if you have little time, maybe longer. During all this time, you will be unable to turn a profit regularly. At first, you will probably make a lot of rookie mistakes, which can lead to high losses, which, in return, can end your trading career before you had time to master binary options.
By investing a robot, you can avoid this long and difficult process. You can simply buy the knowledge of other traders and use their expertise to make money. In many ways, this is a reasonable choice. If you want to go on vacation, you rather use the expertise of a trained pilot to fly the plane than learning how to fly yourself, too. Why not do the same thing with financial investments?
This type of market analysis requires you to leave your emotions at the door. With perfect rationality, you must analyze what happened to an asset’s price in the past, what these market movements tell about the intentions of the market participants, and how these intentions will influence the market in the future.
Since this analysis requires you to work like a machine, letting a machine do the work for you is a logical choice. A robot is the ideal tool to transform this concept into reality.
Robots take the rules human traders follow in their heads and translate them into machine code. Since these rules are mathematical anyway, this process can be accomplished without reducing the quality of the market analysis.
Looking at these advantages, you might have thought to yourself: “Okay, but can’t I get the same advantages with an investment fund?” Well, unfortunately, things are not that easy. The trouble with investment funds is that they charge high fees that often eat up all the profits the fund makes.
Most funds charge their first fee when you invest into them, often at least around 3 percent. That means, right from the start, you are at a disadvantage and have to catch up with the market. This goal is further complicated by the annual fees keep eating away at your money.
Many funds charge around 3 percent per year in management fees. Combined with the 3 percent fee for buying the fee, this means that the fund would have to make at least a 4 percent gain every year to eventually turn a profit. Since the market has moved sideways for the last 15 years, and since no fund managed to maintain such a high rate of profitability, the chances of making money with managed funds are small. Instead, many traders have lost money with funds in the recent past.
With binary options and robots, there are no fees. Most binary options robots only cost a one-time fee (more on that in the pricing section of this article), and there are no fees at all for binary options – you get to keep all your money.
In recent years, the public has wised up to the horrific fees that funds charge, which has led many traders to search for an alternative. Binary options present a completely fee-free alternative that most traders should take a close look at.
There are hundreds of different robots out there. To help you choose the right robot for your needs here is what you have to know about the differences between robots.
Most robots use computer programs to analyze the market for you, some use real-life traders, and some use a combination of both. Each type of robot has its advantages and disadvantages, and which one you should choose depends on which type you feel the most comfortable with. To help you make this decision, let’s look at all three types individually.
Again, there is no single best method here. Most robots use purely computer generated signals. Since the goal of robots has always been to automate trading and take the human element out of the equation, this seems like the natural approach to us. As long as you make money by the end of the month and feel comfortable while you do it, however, all other approaches are fine, too.
The important thing is that you are aware of these differences and choose a service that fits your needs.
Recently, there has been a trend to use Meta Trader for binary options trading. Meta Trader is one of the most commonly used trading platforms in the world, and many traders will already know it from their currency trading. Meta Trader also offers the option to execute robots that you can program yourself or download from one of the many internet forums and communities that focus on Meta Trader.
The problem with Meta Trade and binary options is that Meta Trader does not support binary options trading. To solve this problem, some new services started to provide the opportunity to connect Meta Trader to your binary options broker. For a monthly fee, you could send your signals to this connection provider, and it will execute your signals with your broker.
Unfortunately, the combination of Meta Trader and a connection provider suffers from two problems:
Consequently, this site and this article will focus on professionally developed binary options robots. While we can’t guarantee that there are absolutely no good Meta Trader robots out there, most of them are unable to live up to the lofty promises they make. To help you understand the reasons for this dilemma, we will explain them shortly and then get back to professionally developed robots that can help you make money.
Some binary options robots can take over your entire trading process – they find trading signals and execute them. There is, however, also the option to get both systems individually. Signal providers create signals and tell you what to invest in, and some robots simply provide the opportunity to execute these signals with your account.
Unfortunately, this system has many disadvantages, for example:
Consequently, we recommend sticking with complete robots. On this site, we will focus on complete robots exclusively, and when we talk about robots in this article, we always refer to complete robots.
Some robots do have a money management strategy; some do not. Money management means that a robot would adjust its investment for the next trade depending on what happened in previous trades, ideally in a way that increases your investment as your bankroll increases and decreases your investment if you should suffer a losing streak.
Binary options robots that do not offer a money management strategy invest the same amount on every trade. If you set this amount to $10, for example, the robot will invest $10 on each trade until you change the setting.
The tricky thing about money management is this: a good money management is better than no money management, but a bad money management is worse than no money management. Consequently, having a broker that offers a money management strategy is neither good nor bad in itself, you have to assess whether this is a good or bad money management strategy. If it is a bad strategy, you are better off investing a fixed amount.
To help you distinguish a good money management strategy from a bad one, you have to understand the characteristics of both types:
By the sheer force of the odds, even the best traders and robots will sooner or later experience a long losing streak, and with a bad money management system, there is no way to survive it. Stay away from this trap!
If your robot has no money management system, we suggest you manage your money yourself. All you have to do for this purpose is define a fixed percentage of your overall account balance that you invest on a single trade, ideally no more than 3 percent. All you have to do is take 2 minutes every couple of days and adjust your investment per trade to fit your account balance, and you are fine.
If your robot offers no good money management by itself, choose this option, and you will enjoy a much longer, more successful trading career.
Prices for robots can vary greatly. As with most products, quality is expensive; but if you know what to look for, you can also get a quality robot for little money – even for free. Let’s not get ahead of ourselves, though, and start from the top.
Most robots come for a one-time fee of around $200 to $500. For this money, you buy lifelong access to the robot and its service. Some robot providers also offer their robots as a subscription service for around $100 a month. If you plan to use a robot for more than half a year, the one-time fee is always cheaper than the monthly fee, which is why we recommend getting a fixed price robot to everyone.
Of course, with fixed-price robots, the initial investment is a little higher. This, however, should not deter you from choosing a fixed-price offer. Most brokers offer a 60-day money back guarantee that allows you to get all your money back within the first two months of your purchase.
This guarantee allows you to test the robot thoroughly and if you do not like it, get out without having lost a single Cent. Consequently, the higher initial investment does not result in a higher risk and is, therefore, no reason to neglect brokers that are priced this way.
When it comes to pricing, there is one robot that does things different than all competitors. This robot is Binary Option Robot, which allows its traders to use its service for free and makes the broker pay the fee instead.
This system makes use of a simple business principle. When someone delivers a customer to a business, they usually get a cut. Binary options brokers offer a similar service, paying people that deliver them a new customer money for their help. Binary Option Robot uses this system and takes the reward the broker pays them as your fee for the service.
Of course, this system requires you to sign up for one of Binary Option Robot’s partner brokers. When you register with Binary Option Robot, you can select which of their partner brokers you want to use, and as soon as you complete your signup process with this broker, your account will be activated.
In this way, Binary Option Robot enables everyone to get a robot without having to invest a single Cent. Especially newcomers can profit from this service – they need a broker anyway, and getting it in combination with a quality robot surely is a great advantage, especially since Binary Option Robot’s partner brokers are the best of the best in the business.
To answer the question whether robots are worth the money, we have to split our answer into two parts: firstly, we have to analyze whether it makes sense to get a robot in general. Secondly, we will ask ourselves whether it is a good idea to sign up with Binary Option Robot, which is free; and thirdly, we have to judge whether it makes sense to sense to sign up with a paid provider. We will start with Binary Option Robot and show you what robots can do for you in general and then work our way through to paid robots.
1. Does it make sense to get a robot in general?
Good binary options robots can win just as high a percentage of their trades as a human trader. As we pointed out, however, robots can place more trades and never get tired. To put these two statements into context, let’s see how they play out when we do the math.
Let’s assume that a trader trades for four hours every day with 20 trading days a month, makes four trades per day, and wins 70 percent of their trades with an average payout of 70 percent. They now want to know whether it would make sense of them to invest $200 into a robot that follows a similar strategy.
The first thing we would have to factor in our calculation is that the robot can trade all day and monitor more assets simultaneously. Instead of trading only four hours, as the human trader does, the robot can monitor the market 24 hours, which is six times as long and will never miss an asset.
This means, instead of making four trades a day, the robot would make at least 24 trades. Probably, the robot would make even more trades, since it would never miss an opportunity while it is monitoring another asset or has to go to the bathroom, but let’s use the minimum assumption. To keep things simple, we will assume that the trade invests a fixed amount per trade and also sets their robot in the same way.
So what would happen in this example?
This means the trader would win 280 trades more by switching to the robot. Even if the trader invests only $10 per trade, they will get an extra profit of $2,800, which would easily justify the investment to buy a robot.
Of course, this example assumes that the trader is able to choose a quality robot that mirrors its strategy perfectly, but even if the robot would use a slightly different strategy with fewer signals, the difference would still be significance.
2. Does it make sense to get Binary Option Robot?
For you, Binary Option Robot is completely free. But does that mean that you should use the service? To answer this question, let’s take a look at the features that Binary Option Robot provides and the results the robot can create for you.
Binary Option Robot offers these features:
Getting these functions for free is definitely worth the money. Even if you are skeptical about binary options robots, Binary Option Robot puts you in the perfect position to try robots for free and with as little risk as possible
3. Does it make sense to pay for a robot?
With a perfectly fine fee alternative available, you might ask yourself whether it makes sense to pay for a provider. The answer to this question depends on what you expect from your robot. While paid providers offer no more options and no better service than Binary Option Robot, they can provide automated trading to those traders that are unable to use Binary Option Robot. These are two types of traders:
Unless there are significant reasons why you should choose a paid provider, we recommend starting your automated trading career with Binary Option Robot.
Traders who are new to binary options robots are often cautious. Before they invest their hard earned money into something, they want to know that it works. With robots, there is a number of ways in which you can find out whether a service actually works and is worth the money. We will list these ways in the chronological order in which you should apply them:
1. Get an expert‘s opinion
If you are new to binary options, the first thing you should do is get expert help. Since you probably do not know an expert in your daily life, we suggest you get your information from sites like this.
We have tested all major binary options robots for you and recommend only those that were able to create positive results. From our articles and our top list, you can find a first selection of trustworthy robots that provides you with a starting point for your search.
2. Evaluate the robot’s past performance
Most trustworthy robot providers publish a list of the trades their robot made in the past. From this list, you can clearly understand when the robot invested in what, and whether this investment was a winner or a loser.
To understand whether this robot would work for you, we suggest you multiple the robot’s average winning percentage with the average total return you receive from your broker. The total return is your average payout plus 100 percent because you get your investment back in addition to your profit. If you do not know the average payout of your broker or if you are new to your broker, we suggest you calculate with a 70 percent average payout, which is the worst-case scenario.
For example, if a robot has won 75 percent of its trade in the past and you get an average payout of 70 percent, the calculation would be: 0.75 x 1.70 = 1.275. Since this value is larger than 1, you can expect to make a profit with this broker/robot combination. If the value were below one, you would have to find another broker or robot to make money.
3. Test the robot with a demoaccount or paper trading
Some binary options robots are able to work with binary options demos. Demos work just like regular accounts but enable you to trade with play money instead of real money, which puts you in the perfect position to test a new robot risk-free.
If the robot you want to test does not support demo accounts, you can use paper trading instead. Once you subscribe to a robot, you can access all the robots signals from the members’ area of its website. We suggest you wait before you connect the robot to your account and evaluate these signals first. How many of them would have led to winning trades? Once you know the answer to this question, you know whether you can trust the robot.
Since this step requires you to buy a robot, it is important that you complete it within a robot’s 60-day money back guarantee. If you do not like the robot, this guarantee helps you to get all your money back and complete your trial loss-free.
4. Test the robot with little money
Once you have completed the first three steps of your risk-free trial, we suggest you invest your broker’s minimum deposit. Try your robot with this small amount and see how it does in real-life trading. If you are satisfied and grow more and more confident with your robot, you can still invest more money.
We know that many traders can’t wait to get started, skip the first three steps, and jump right to step 4. You can do that, of course. But it means that you have to accept risking the deposit you make, which will probably around $250, which is most broker’s minimum deposit requirement. If you feel comfortable with taking this risk, go ahead; but if you don’t, make sure to avoid allowing the anticipation of big gains to trick you into doing something you might regret later.
The best binary options robot is Binary Option Robot. It is free, it is accurate, and it provides you with a wealth of functions to adjust it to your needs. What more could anybody ask for?
Traders who want to use a robot other than Binary Option Robot usually want a robot that works for the broker they already have an account with. Since every robot works only for a handful of brokers, it is impossible to make a general recommendation which robot works best for all traders. When it comes to finding the ideal robot, nobody can save you from having to match the available robots to your broker and choose the offer you like best.
On our site, we have tested several robots, which can help you to get started. However, unless you have significant reasons, we recommend you stick with Binary Option Robot.
Binary options robots can automate your trading and be your autopilot to success. If you ever wanted to make money in your sleep and trade the financial markets without having to master technical analysis first, binary options robots provide you with the chance to accomplish these goals. Binary Option Robot offers the best service for new traders, combining quality with a free service. To get started with Binary Option Robot, follow one of our links.