Should you trust binary options robots: full review

Today the market is flooded with automated programs for trading binary options. They are based on technical indicators and run on mathematical algorithms that traders use every day, so you can assume they can be trusted.

But given that binary options themselves are a lottery, finding working software becomes not just difficult, but complex squared. Therefore, if you are new to the world of trading and know first-hand about robots, I recommend that you continue reading. Here we will discuss everything you need to know about binary options robots.

What it is

What comes to mind when you hear the word "robot"? Artificial intelligence? Cars? Computers? In trading, a robot is a program. Script. A piece of text code. It automates the trading strategy of a binary options trader, independently determining entry and exit rules. That is, it completely manages trading capital for the trader.

Rumor has it that because the robot is rules-based, it does not make the mistakes that traders make, such as being greedy and not exiting a position when necessary. This is true. But ignoring market psychology is a debatable advantage.

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The psychology of people on the other side of the transaction is the basis of candlestick analysis. A robot can only blindly follow the first postulate of technical analysis, which states that the price already includes everything.

A monstrous flaw, due to which millionaires who made a fortune on algorithmic trading are mythical characters. If everything were so simple, banks and other offices would drive away greedy traders demanding a salary and a full social package, replacing them with robots for binary options. But so far, as they say, it’s not fate.

Principle of operation

The binary options robot offers a fully automated form of trading. Essentially, the difference between a robot and regular binary options trading is that technical indicators are read not by a person, but by a program.

Therefore, a trader does not even need a basic understanding of the process. Simply put, you can launch the bot and go to sleep, and it will do the trading for you. However, this also means losing control of your money.

And judging by the fact that I don’t see a crowd of millionaires from the slums around me, the success of trading robots is still modest.

The most famous bots: AutoCryptoBot and Ali robot

Among the trading robots that are quite well known to traders today are the Autpcrupto-bot advisors and the Abi robot, which have already gained some popularity among binary options traders.

Trading bot Abi

Advantages and disadvantages

Any theory has its pros and cons.

The advantages here are:

• minimum stress - psychology fades into the background;
• risk control 24/7 (the binary options robot always monitors the situation);
• robots give a lot of signals because they do not sleep and are not distracted;
• Binary options robots allow you to trade without experience or knowledge;
• you can start with a small deposit (from $5);
• You can trade binary options derivatives of a large number of underlying assets (from currency pairs to oil, stocks and gold).

Main disadvantages:

1. The robot is based only on technical indicators. Why is this bad? Yes, for example, because he cannot interpret in advance the reaction of traders to major news releases or other information releases. Only a person can evaluate the psychology and emotional moods of other people.
2. Works with a limited number of brokers. Not all brokers allow such “cheating”. Therefore, there are fewer attractive opportunities than when trading currencies or other derivatives on exchanges.

Risks of automated trading

The theory behind automated trading makes it simple: set up the program, program the rules and watch the robot work hard on binary options. In reality, however, mistakes do happen.

Like any complex system, bots make mistakes. The mistakes may be minor, but given the limited expiration period of the BO and the inability to hedge risks, all this nonsense has one ending - loss.

Essentially, you have absolutely no control over how the money is invested. There is always a risk that the binary options robot will make a series of bad decisions that will lead to a loss. And considering that we have already paid for the bot itself, the losses will be even higher than if we traded ourselves. That is, the broker made money on binary options, the author of the bot made money, and both at our expense.

Quality or fake - which robot is better in 2022?

A good advisor is quite a useful thing, and a lot of resources were spent on its development and testing. In addition, as already mentioned, to create such security, a profitable strategy is used, the author of which worked a lot to find the correct sequence of actions. Therefore, it is unlikely that anyone will offer a good program for free; you will have to pay for the opportunity to use auxiliary software. In addition, it is useful to know that if an advisor is put up for sale, this may mean that the binary options trading author has developed a more profitable strategy. However, the decision to sell may also be dictated by a decrease in the profitability of the product.

A potential buyer is faced with a difficult task; he needs to recognize whether the product being offered is a high-quality program that will make a profit, or a fake that can only help quickly get rid of the deposit. There are indirect signs that will help distinguish normal software from dummies.

Any quality product must have a testing period, otherwise it is impossible to make sure that its signals are worth anything at all. If the seller insists on the “infallibility” of his software and does not provide at least a few trial runs, most likely he is offering a dummy.

Types of robots

Basic:

1. Automatic. This type of program works completely autonomously. The trader must set profit limits and periodically monitor the process. The weak point of these binary options robots is that they cannot assess the overall complexity of the market situation. They are unable to assess the strength of an emotional impulse before it is reflected in the price. This is not difficult for an experienced trader. Therefore, bots always suffer severely from impulse news “breakouts” if they occur during the expiration date of a binary option.
2. Semi-automatic. These are so-called experts, robo-advisors or consultants who work on the principle of a signal flare. They analyze the market and provide the trader with ready-made buy/sell signals. The user evaluates the situation and decides whether to trade or ignore the signals.

This is both a plus and a minus. The advantage is that the money is completely under control. They will not be lost if the robot suddenly becomes dull. The downside is that if the trader clicks the beak, potentially working signals are wasted.

Definition

A trading robot or bot is a program that independently analyzes the market, working according to a prescribed algorithm, which is based on the use of indicators and strategies. Solutions are divided into 3 types:

• automatic (open orders without the help of a trader);
• advisors (if a favorable moment for entry is detected, they notify the trader, after which he makes a decision to conclude a transaction);
• combined (2 modes are provided - automatic and advisor).

Robots can be paid or free. Expensive software doesn't always live up to expectations. Experienced traders create their own solutions, incorporating proven indicators into the algorithm.

Tips for choosing

Millions of specialists will give millions of advice. I suggest you pay attention to the following:

1. Please read the terms and conditions carefully. Conditionally reliable and legal software is always sold under an offer that defines your relationship with the seller. Take the time to read the contract.
2. Find out if the bot gives you control over your trades. Each trader must be responsible for his own trades. Although there are fully automated trading software available, it is advisable to always maintain control over your trades because binary options robots may not always be able to adequately price the market.
3. Check the reviews. Good trading software will always have more or less good ratings. All this quickly ends up in discussions on forums, review sites and social networks.
4. Rate the interface. If it is too complicated and does not help, but, on the contrary, interferes with quickly opening trades, abandon it. Start with simpler software, and when you gain the necessary skills, begin to master more complex programs.

And, of course, don’t forget about support. Beginners often ignore this point, believing that the main thing is to quickly get their hands on the treasured binary options script. But if some problems suddenly arise, who will sort them out?

That's right: support service. Because a) the guts of bots are usually deeply hidden and inaccessible to us; b) we are noobs who don’t know anything about trading and programming anyway. Without detailed instructions from support, we still won’t be able to solve anything.

Which is better: paid or free robot?

It is impossible to answer this question. Each trader is individual and has different goals and needs. There are traders who place trades just to experience the excitement and adrenaline rush of binary options. Others calculate everything and very diligently develop trading strategies without relying on luck.

For this reason, it is impossible to say whether binary options robots are worth the money. On the one hand, free software is simpler. It is often open and easy to customize.

On the other hand, if you are an outsider, it is easier for you to buy a ready-made and already configured solution, which itself will trade for you. But if the market changes and the bot becomes irrelevant, you will lose both the money on your deposit and the money you paid for the bot.

Robots for trading binary options

All these robots are a common market scam, aimed at stupid beginners who don’t think that a successful robot capable of forecasting the foreign exchange market would cost millions of dollars and no one would sell it.

And everything that is offered on the Internet for 3 kopecks is ordinary nonsense. Nobody sells successful tools, it's not hard to guess, right?

You should send any “earning trading robots” to the forest. There were and are hundreds of them, it is simply impossible to list them all:

• Algobit
• AutoBinary
• AlgoSniper
• Genius
• Auto Binary EA
• Ultra Binary
• ATS-binary
• Norbert binary bot
• Option Bot
• U-Bot
• Binary drone 2.0

Fortunately, the hysteria about magical robots that earn money for you has subsided somewhat. During the period 2013-2018, hundreds of thousands of citizens merged with them. The audience seems to end... but in fact it doesn't. Those who merged into robots are replaced by newcomers and this process is continuous, the intensity has simply decreased. And that’s only because the suckers fled to the cryptocurrency market.

The desire to get everything at once, without any mental effort, so characteristic of the province, always plays a most amusing joke on it. And it leaves natural holes in an already skinny wallet.

How to get started with the robot

If we buy a bot, does that mean theory is not needed? Are we throwing books for beginners into the trash and wiping our butts with price charts? No, it won't work that way.

And trading with bots, if we work for results and not for thrills, begins with the following:

1. Strategy Development. The bot does not trade for us - it takes over the routine of binary options. Planning and strategy are the job of a trader.
2. Technology stack equipment. You need to choose a trading platform in advance, prepare working equipment and a good Internet connection. If we trade from an office, everything becomes simpler. Freelancers need to get involved. Power failures or glitchy hardware can seriously upset a would-be trader, because the software works on his side.
3. Management of risks. The binary options trading robot doesn't think about the fact that we might be left without pants. Yes, money management is available to him, we ourselves can adjust it to SL/TP levels. But personal control is vital.

The practical part consists of the following steps:

• registration with a broker;
• activation and replenishment of a trading account;
• terminal installation;
• installing an advisor in a trading terminal;
• start of trading.

There are different types of binary options robots. More often they are packaged into one file in ex4 or mql format. But sometimes the authors put everything in an archive, where the files of the adviser itself are mixed with instructions and indicators, without which it will not work. Not everything is signed in Russian. In this case, you need to shove everything into place according to the following scheme.

When everything is done, reboot the trading terminal. If everything is installed where needed, the advisor will appear in the toolbar. Then you can treat it like standard software. The wealth of settings depends on the bot author.

Reviews

Alex Dammel. Founder of the London Trading Club:

“Binary options robots are only technically legal. Too many people think that trading binary options with a robot is as easy as eating pie. They think they can just turn on some automated software and the profits will start trickling into their pockets. Then, when they lose their money, they start calling the whole trading a scam.

But what is a binary options robot? This is just a marketing funnel for brokers. All major algorithmic trading software providers work with brokers. Some receive a fee for scripts and a percentage for attracting new clients, while others receive what you lost in trading. They make money, you lose. Not the other way around."

Daniel Hobbs. Ex-Goldman Sachs trader, financial consultant at Peer Lending Group:

“Binary options = casino dice. You will always lose in the end. I don't understand the user obsession with binary options. This is madness. As I've mentioned in other posts, anyone looking to trade derivatives of any type needs to better understand the risk structure.

This process begins with understanding how forwards, futures and other “traditional” derivatives are priced. Call, put, understanding of dynamic price movement, timers, knockouts - a lot of subtleties.

Every time you buy something from someone (even without BO), you should understand how the person selling you that “thing” is compensated. In the stock, foreign exchange and commodity markets, it is always another market participant.

That is, when you buy an Apple share on the stock exchange, you are not buying it from Apple directly. You trade with other traders. We always need to understand how the person on the other side of the transaction hedges their risk.

In the case of BO, it is not another user on the other side, but the broker himself. Therefore, when you buy binary options, you are trading against the casino. While it may work out, as a few lucky card hands sometimes do, we always know that in the long run the house always wins.”

Binary sphere

Binary options are a fairly simple, technically speaking, method of earning money.
All that is required from the trader is to press a button to buy or sell a certain asset and also set his own bet amount, lot. This is much simpler than working with orders and stops on Forex, or trading on the stock market, which requires documentary registration with a brokerage firm and intensive analysis of the situation.

In the field of binary options, analysis is also necessary. But, most often, it contains only a technical component and is focused on indicators and signals that the trader receives from them. But what happens if you automate such trading?