Signal software can make your binary options trading a lot easier and more successful. Signal software can tell you which asset to trade when and how, thereby saving you from the necessity of performing technical analysis.
What is signal software?
Signal software can use technical analysis to predict future market movements for you. By doing this, signal software can help you turn the most challenging part of technical analysis into an automated, failure proof process.
There are two fundamentally different kinds of signal software:
- Signal software that is run from your computer, and
- Signal software that is run online on a server.
Signal software that is run from your computer uses only technical analysis to generate trading signals.
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While this is easily enough to create valid prediction about future market movements, some online signal providers will go one step further: Some of them use highly qualified trading professionals to evaluate the indicators and filter the signals.
Some internet based signal providers even allow you to watch a professional trader at work, thereby combining signal creation and trading lecture. If you want more than signals or a signal software that is not entirely based on technical indicators, checking only services is definitively worth the time.
Signal software that is run on your computer will generate signals via pop-up or directly in your trading program. Internet based signal software will send you signals via email and / or text message. Either way, signals will include the underlying asset to use for your binary option, the expiration time, and the direction you should invest in.
As of now, all signals are created for high / low options. Traders of touch options and boundary options have to either create their own signals software or create signals manually by using technical analysis. Signal software can generate signals with an accuracy of up to 80 percent. That means, if you execute all created signals correctly, you can win up to 80 percent of your trades. This is easily enough to make money with binary options.
Advantages of signal software
Using signal software to generate trading signals has a number of advantages. These are:
No knowledge of technical analysis required
Maybe the biggest advantage of signal software is that it can save you from having to master the complicated rules of technical analysis. Instead of learning a complex set of strategies, indicators, and techniques, you can simply receive perfectly sound signals.
Mastering technical analysis is a long, hard process. Along the way, each trader is bound to make a number of mistakes. Those mistakes will often lead to lost trades and can be very expensive. Signal software can save you from making these mistakes by automatically telling you when and how to trade.
Quicker, easier trading process
Technical analysis can be a time consuming task, especially if you are trading more assets. By using signal software you can outsource the entire analysis process and focus solely on investing. This will make your trading process quicker and easier, thereby helping you to create better results.
Comparable, non-emotional signals
Signal software uses a strict, exactly defined set of rules for when to generate a signal. Therefore, you can easily compare and evaluate different signal software. After a certain number of trades you know exactly which winning percentage and which payout you can expect with each signal software.
You can use a demo account for the testing process, evaluate different providers, and then use the best provider for your real money trading. As long as you create signals manually, there will always be fluctuation on how well you execute your technical analysis. That makes maintaining a high level of profitability hard.