The Ultimate Guide to Binary Robots
What should you know about these trading robots?
Given how popular they are with scammers, who will take every opportunity to blow their true capabilities out of proportion, it’s safe to say that binary options robots have been overhyped lately. From tracking weather satellites to using AI and various complex trading algorithms, not to mention bare metal servers, everything has been attributed to binary trading bots as the concept behind them. Of course, none of these wild tales are true. All trading robots that exist are based on a more or less complex combination of technical indicators, and that is also the source of their limitations.
Binary options robots are, in fact, quite limited when it comes to long-term success and consistency, and that can be attributed to the fact that they cannot perform fundamental analysis. Technical analysis, with its charts and chart patterns, along with various mathematical contrivances, is extremely easy to automate. Fundamental analysis, on the other hand, does not lend itself well to automation. Not even rudimentary AI systems can handle adequate fundamental analysis, and that explains why experienced robot users’ best response to fundamental-induced volatility is to turn everything off.
What types of trading robots will you find there?
Based on how they are “sold”, there are two basic types of binary options robots. There are scam robots and there are legitimate ones. When it comes to complexity, the sky really is the limit. One can combine as many technical indicators as one wants and can place one filter on top of another to refine the results. The money management module can also be twisted into all sorts of shapes and sizes.
How do you recognize a binary options auto trading scam?
The clues/signs are quite numerous and obvious. Fraudulent auto dealers are advertised everywhere these days, and most of them are based on the same model. Scammers set up a 2-3 page site on a newly purchased domain and upload an elaborate promotional video to YouTube or another video hosting site. Even the scripts of these videos resemble each other. These are fabulous promises of thousands of dollars a day with no work required from the trader and usually say very little about how their software is supposed to guarantee such results. If they talk about the mechanics behind their merchants, they usually make up some kind of far-fetched story where they promote some kind of fairly mundane technology, hoping that the less-savvy will buy it. Another common denominator of these videos is the fact that scammers make a big deal out of offering their software for free. However, it always turns out that the victims have to make a deposit of $250 with one of their “trusted” brokers to make it all work. It goes without saying that the victims never see a single hundred of their money afterwards.
What happens is that the scammers give traders access to a low-quality robot, which uses some technical analysis to generate signals and trade. They then collect their commission from the broker they are associated with and stop worrying. Users then have their deposits exchanged for the software. They may even receive subsequent phone calls from the broker, through which they are encouraged to make additional deposits.
Legitimate car dealers never exaggerate anything. They simply state the facts about their products, including their limitations.
One of the most interesting platforms that traders can use to create their own trading robots is hosted by one of the most popular CySEC brokers, IQoption. Through this platform, traders can use a wizard to create robots, using a number or ready-made modules. Sharing these robots is also possible through the same platform. Creating more advanced robots requires advanced knowledge of technical analysis. Everything is free on the IQoption Robots platform. What this means is that traders without any skill and inclination towards technical analysis can simply log in and use the robots created by other traders. What’s more, there are also apparently robot trading competitions on IQoption, allowing traders to put their creations to the test.
The bottom line is that trading robots are always limited by the nature of the technical indicators they use. If you hear stories about a car trader capable of fundamental analysis, you are probably looking at a scam. Be realistic in your expectations. In this way, you might find the robot trading game fun.