What if there was a way someone could share your workload and make trading decisions on your behalf without having to get you involved? Wouldn’t that make everything much easier?
Well, say no more because binary trading robots are the perfect solution for all your trading worries, as with automated bots, you can make trades with minimal effort on your part.
For example, once you’ve set up an automated bot, it will use algorithms to scan profitable market trends and use copy trading methods to make investments on your behalf. However, before you start officially using an automated bot, it is important to know how it works.
How Does a Binary Trading Robot Work?
Binary options automated bots trade assets on a trader’s behalf, using algorithmic trends, best trader’s practices, market analysis, news, etc.
For example, the pocket option trading bot can be downloaded as a browser extension. The following step is to create a new account and register with it. After that, the only thing left to do would be to set up your robot with the desired signals and let it execute trades independently.
In a nutshell, you must install a binary options bot, interface it with your account, and it will start executing trades depending on your criteria. That said, it is always better to use a demo account and figure out the ideal settings for the robot before you start live trading with it.
Are Automated Bots Free of Risks?
Not every automated bot you will encounter on the internet will be reliable or safe. These bots often turn out to be huge scams, resulting in significant financial losses for traders. Therefore, there is a risk of fraud when it comes to binary options robots. However, there are a few options you can always trust, such as Pocket Option, IQCent, etc.
Moreover, binary automated bots have a success rate of about 85%, but it is still important to remember that a robot cannot completely replace a human being’s cognition. Hence, there is always a risk associated with them, especially when making decisions in situations that are out of the box.
Even with the finest data analysis techniques, automated bots cannot guarantee that every choice they make will be profitable for you. But, having said that, regardless of whether a real person or a robot makes the decision, there is always risk involved in binary options trading. Therefore, it is better to weigh an automated bot’s pros and cons before trying it out.
Advantages of Using an Automated Bot
- Best for Beginners
As a beginner, it can be difficult to understand which options are profitable and which are not. An automated bot, however, can examine market trends and place trades on your behalf, making sure that you profit most of the time.
- Allows Easy Day Trading
Traders can’t always be trading, so they can use automated bots to do it for them while they take a break or do something else. This is especially beneficial for day traders, as they can make several trades during that time and earn profits without having to get involved.
- No Emotions Involved
Sometimes, physical or emotional stress leads traders to make unfavorable trading decisions, causing them a financial loss. But, unlike human beings, robots are devoid of all kinds of feelings. Hence, they cannot make poor decisions as a result of emotional or physical exhaustion.
- Shares Your Workload
Professional traders spend a lot of time, day and night, researching market trends and putting their strategies to work on different assets. By using binary options robots, traders can save a lot of time and effort, as these bots can analyze market trends just as well and make informed decisions based on parameters the trader sets himself.
- It Is Fast
Robots are much faster than humans and can carry out several tasks in a short period of time.
- Provides Cheap Services
Most of these automated trading services are either quite cheap or free of charge. This enables all traders to access and utilize this technology, including those who don’t make much money.
The Downside of Using an Automated Bot
- Risk of Technical Failure
Automated robots are subject to technical failures like any other technology. Therefore, they require constant monitoring, as technical problems in the system can cause a failure to make correct trading decisions. This would then result in a substantial financial loss to the trader.
- Risk of Scam
Scams are very common with automated trading software programs. Some companies promise that traders will make money without doing anything. They say that all you have to do is sit back and watch the money come in. But these bots are usually only used to get personal information from people and force them to pay money.
- No Replacement for a Human Brain
Because robots lack human characteristics, they can make sound decisions without getting swayed or overwhelmed by emotions. But, on the flip side, since they do not also possess the human understanding or intelligence and can only strictly adhere to the set parameters, it may be difficult for them to perform in scenarios that are out of the box and complicated.
Binary trading robots are always a risk. However, since they are so easily customizable, you can modify these bots according to your trading wants and needs and make your life easier. In the end, whether you trade yourself or use a bot to do it, there is no guarantee that you will be profitable every time. Therefore, make sure you choose wisely, keeping all the pros, cons, and risks in mind.