As anyone who has experienced the process of binary options trading knows, this process is not a quickly process and it requires lots of effort and devotion. Due to the fast pace of life in modern days, many binary options traders do not have enough time that they could spend in order to trade binary options. Exactly because of that, many companies have developed different tools that enable traders to automatically place binary options trades even they are not at their computer of mobile devices such as tablets or mobile phones. This theory gave way to many fraudsters to use it to their benefit and create the perfect system to lure traders.
During the last several years, there has been an increase in the popularity of the binary options robots that provide traders with the possibility of easier trade as well as more successful rate of trades. Created in order to help traders with their binary options trading process, binary options robots have proven to be a very useful instrument in achieving great success when trading with binary options according to the advertisements which have flooded the Internet. Still, traders should not be fooled by these ads, since there is little truth in statements like “The robot reduces human error and does not require the trader’s participation”. It indeed requires the trader’s participation if they want to avoid loss of their investments.
Binary Options Robots – Basic Information
First of all, allow us to define the binary options robots. Binary options robots are software products that are providing the automated process of trading with binary options. These software products are producing something called binary options signals that are used by these robots to place trades. It is no wonder that many traders fall for the trick when the robot developers present it like this. But the truth goes deeper; many robots are developed by scammers who actually program them to work against traders and to do the opposite. If you for example set the option Stop Loss at a specified amount, it is more likely that the robot will not close your trade at that point, but will let you keep losing until your account is depleted. . We have also mentioned the notion of signals that these robots generate in order to make the trades. These signals are actually designed to connect to your account and act on behalf of the scammer. The scam binary options robots are always said to have a 90% and above return rate, which is impossible. Still, many new traders do not know how much returns they can secure and their inexperience often makes them believe that it is possible, whereas experienced traders know that it is not feasible in the volatile options market. Random Picks of Trades
Unfortunately, many expert traders have come to the conclusion that the robots often pick the trades randomly and account for more losses than wins. They can have a winning streak which fools the traders, but most of the time, the trades will be unsuccessful in over 60% of times. Performance of the robots is very questionable, especially when they are cheap and free.
Of course, today, traders have to rely on technology to help their trading, but they should make sure that the robots were made by reliable computer programmers and financial experts. Even when having good auto-software, experienced traders know that they cannot solely rely on that but have to swoop in from time to time. The trader should always be the one with the upper hand and control his/her trades no matter how good the software is, especially if he/she is notable to recognize and identify features that indicate whether the given binary options robot is a scam or not.
Software Malperformance
Traders should also know that the developed binary options robots lack proper testing on the market. No one can guarantee for their performance and it has often be the case that the software behaves out of control. First of all, many traders reported that the robots started placing trades on their own or they placed the same trade over and over again and they could not stop it. These technical errors are quite common with the robots as a result of bad quality. The software often freezes which makes any action impossible and only traders know how timing is important and that every second can matter.
The scam robots will usually have these features and torture you through the majority of your trades. Even when the robots are not scams and perform smoothly, a robot will not recognize sudden changes in the market like the trader, but it will keep behaving according to pre-set options. Between the time of setting the robot’s parameters and the time of placing a trade, major events could have turned the market upside down where an instant change of mind is required calling for quick action. In this situation, a human logic would benefit the trader more than a pre-setrobot, since the robot will fail to adapt to the new situation.
Conclusion
Binary options robots, which can be available as part of the binary options platform or bought and installed individually, are not the perfect solution as portrayed by many robot advocates, i.e. scammers and fraudsters. The majority of the robots are inferior to human trading skills.
Traders should also know that there is no quick way of making money, especially not the kind robot scammers portray, and even binary options requires thorough market knowledge and involvement on behalf of the trader.
Traders should stay away from the malperforming robots and rather focus on market research and analytical market studies if they want to generate more returns than losses. You can benefit more from your own trading strategies if you carefully observe the market than from automated trading. The fact is that robots cannot predict market events; no one can, not even financial experts who have spent years and years on their research to crack the code of market volatility. Automated trading is only recommended to experienced traders who know exactly what they can expect form trading signals and when to incorporate them. All others should hit the books and get to properly know the market before they engage in any kind of risky robot decisions.
