The use of binary options robots – “bots” – and other automated trading software and applications has exploded in recent years. Here, we explain how trading robots work and review the top services of 2020, and list what you need to know and look for. We also show you where to get a demo robot account to talk about the service, and teach you to use the auto trading software and tools.
The best auto trading service for you will come down to individual preference, so read on to get all the facts.
Robots and Auto Dealers in Malaysia
How Auto Trading Robot works
Robot software and automated trading algorithms combine signal services with automated trading. So the software will try to identify profitable trades, and then will place trades automatically. This automated element takes the signal service one step further, and actually places the trade as well – rather than leaving that up to the trader. These systems will have different levels of risk management – from stop loss, to daily fixed spending limits. The automated element however, increases the financial risk for the trader as a whole.
There is also a growing trend for brokers to provide their traders with the ability to configure their own bot systems or automated trading systems. This tends to simplify the process, letting traders “drag and drop” technical indicators into their system. The features of the best built robots also allow traders to run their robots in a demo account, for a risk-free trial.
Brokers are interested in promoting robots, because they produce higher trading volumes, and therefore reduce the broker’s risk. They can be a great tool for traders too – but as always in binary options – any promise of profit is an immediate ‘red flag’. Robots, like the binaries themselves, need to be fully understood before use, and they are not a path to guaranteed profit.
Do Robots Make You a Better Trader?
Sometimes. Trading robots will change, just like any other trading method. The same is true of controlled robot settings, which may become less (or more) effective over time. Therefore, they need to be constantly monitored for performance.
Automated trading undoubtedly increases risk – and binary options are already high-risk investment vehicles. But automated bots that are not active and can be detected can overcome a large number of trading losses, especially where news events impact the market. An event that might make a human trader step out of the market, will not stop an automated robot.
This additional risk can be managed to some extent. Many robots will have a daily loss limit, and an overall limit. They can also be set to stop if a certain profit level is reached. Traders need to be aware of all those pitfalls and treat the boat with respect.
Reviews of Auto Traders
Binary.com also offers facilities to design and run automated trading robots. Long a broker for advanced traders, Binary.com now offers a variety of ‘advanced platforms’ – one of which includes the Binary bot platform (Screen below).
This platform gives traders the ability to put together an automated trading system. As expected from this firm, these features offer more depth than some of their rivals – again appealing to advanced users. The criteria available to unify algorithms offer a greater choice than anywhere else. This process allows an additional layer of complexity to be built in, allowing users to get very specific about their trade triggers.
Binary bot follows the look and feel of Binary.com, which is quite unique. The visual ‘shadow’ has been trimmed back, and replaced with more features and usability – a hallmark of the brand. Read more about the platform in the Binary.com review.
Other Auto Trading Software
Automated trading software does not require a small manual element in setting up, but preferably done – as the name suggests – trading is automated. This form of trading is generally very similar to robot services. A trader using automated software will first create the software based on the type of trade they are interested in. So, level of investment, type of asset to trade and level of risk. Once configured, the software can be left to place trades based on the given settings.
Signals – Necessary for Auto Trading
In theory, signals and automated trading are similar. The difference is that when the auto trading software finds a signal, based on the data analysis, it will open a trade. Signal providers will only highlight trading opportunities, but leave the actual trade opening to the user.
Therefore, automated software generates signals based on the algorithm it uses, and will open and close trades based on that algorithm.
Copy Other Traders
There are also services that will allow trades to be opened based on real binary options traders. The provider will offer a list of live traders, and publish the results. Platform users can then decide to copy traders – choosing the level of risk and investment to suit their own needs. This type of “almost auto trading” is called copy trading.
Robots and Auto Trading Scams
The automated nature of this style of trading is fraught with danger. If a trader controls their trades to others, the level of risk is greatly increased. Our scam page references a number of red flags to look for (including a list of scam services), but automated trading in particular attracts many fraudulent operations. Here are some reasons why:
- Novice Traders – Automated trading software is often aimed at new traders, or people who don’t have the time or knowledge to trade on their own. This group may be more easily misled, and therefore they are targeted.
- It’s easy to blame the dealer – Related to the first point. An irresponsible supplier will simply say that the software is misused, and therefore innocent.
- Control – If a trader has put someone else in control of their trade, it is very easy to just say the money is lost trading.
Scam warnings include lack of transparency (unverifiable results), forcing users to use a specific broker, and most obviously – promises of guaranteed or very high profits. If it were easy, everyone would do it. Site very careful if proceeding with auto traders. The risk of fraud is quite high