BinaryOptionRobot offers you powerful tools to manage the performance of the robot. To make the most of these tools, however, you need to know a few facts that can make a huge difference in the profitability of your trading. Learn more here about BinaryOptionRobot performance.
How can I manage the BinaryOptionRobot performance?
One of the great features of BinaryOptionRobot is the chance to manage your robot with in-depth tools. With those tools, you can completely change the performance of your robot, which is why it is important that you understand each single tool and know how to handle it.
In detail, the BinaryOptionRobot offers these features to manage performance:
Investment amount per trade
With the investment amount per trade, you define how much you want BinaryOptionRobot to invest on every single trade that it makes for you.
The investment amount per trade is the most important setting, as a too high value can ruin you quickly. Refuse the temptation to just pick a number that sounds about right and instead employ a solid money management.
Such a solid money management involves always investing a small fixed percentage of your overall account balance per trade. This percentage should be somewhere around 2 to 5 percent. With an account balance of $1,000, for example, you should invest about $20 to $50 per trade, not more.
This might seem overly cautious to new traders, but once you have experienced the realities of binary options trading, you will understand the importance of investing so little.
With binary options, you will never win all of your trades. Even the best traders only win about 70 percent of their trades. While this is easily enough to make you money, you have to plan ahead for the 30 percent of your trades you will inevitably lose.
Some of these losses will come in a row. Even if you do everything perfectly, you will sometimes lose 5 or 7 trades in a row – that is just the power of the odds. When you invest 10 percent of your overall account balance per trade, such a losing streak will ruin you.
To survive losing streaks and grow your capital steadily when things are going your way, manage your money wisely. The BinaryOptionRobot performance gives you the perfect tool to do that.
The stop loss feature allows you to cancel trading for the day after BinaryOptionRobot has lost a certain number of trades.
On first sight, the stop loss feature might seem like the perfect tool to avoid a losing streak. The truth is, however, that, if you know that you win about 70 percent of your trades with BinaryOptionRobot, the odds to win the next trade are always 70 percent, even after a losing streak of 5 trades.
Therefore, cancelling your trading after a few losing trades does not help you to win more trades.
Whether the stop loss feature can aid the performance of your trading anyway depends on how much you invest per trade. If you follow our recommendation, you do not need a stop loss. If you invest too much or if you can only check your account every few weeks, however, limiting the number of trades might be helpful. Nonetheless, we recommend to stick to a solid money management and do not use the stop loss feature.
With reverse trading, BinaryOptionRobot allows you to invest in the exact opposite of what they predict. With the option enabled, a short signal from BinaryOptionRobot will lead to a long investment, and a long signal from BinaryOptionRobot will lead to a short investment.
We strongly recommend to disable the option. Since binary options offer only to options (prices up or prices down), even random signals would generate a winning percentage of 50 percent – this is the bottom line of accuracy nobody can fall below. Reversing random signals would not increase the accuracy, it would still be 50 percent.
As long as what BinaryOptionRobot’s professional traders do increases the winning percentage of their signals even slightly, however, you will do worse when you reverse their signal. Instead of 51 percent, your accuracy will drop to 49 percent; instead of 60 percent, your accuracy will drop to 40 percent – you can’t win.
Always disable reverse trading.