Best binary option robots

Best binary option robots

If you want to get a binary options robot, you might as well get the best. To find the best binary option robots for you, you need to know what you are looking for. There are very different types of robots, and each type is right for a specific trader.

In this article, you will learn:

  • How to recognize the different types of binary options robots,
  • How to find the type that is perfect for you,
  • How to find the best robot for each type of trader.

With this knowledge, you will be able to find the best binary options robot for you.

Best binary option robots

Let’s work through these points one by one.

Which different types of binary options robots are there?
Generally, there are two big types of binary options robots:

  1. Free robots, and
  2. Paid Robots.

Both types of robots have their unique advantages and disadvantages.

Paid robots are often highly complex programs that allow you to tailor their trading to your preferences in any way you could imagine. You can choose which indicators and which money management to use, which assets to trade, and so on.

With these sophisticated programs, you can manage every aspect of your trading process. Consequently, they are ideal for experienced traders that know how to use their wealth of features. For experienced traders, it makes great sense to invest a little extra money to get a robot they can adjust to do exactly what they need.

For newcomers to the trading scene, however, paying for complexity makes little sense. Having to choose from hundreds of possible setups they don’t understand only increases the risk of them choosing a setting that fails to make a profit.

Newcomers need a simple robot. This robot needs to make money, but that’s it. It does not need to have complex functions, and it does not need to be highly adjustable – one working setting would be enough.

Consequently, newcomers are better off by choosing a free robot that makes trading easy for them. Free robots offer fewer functions than paid robots, but if you pick the right robot, they will turn a profit, too. With free robots, you can still adjust your investment amount and choose between different trading strategies, but everything is a little bit simpler and more rudimentary – ideal for newcomers.

The other obvious advantage of free robots is that they are free, which can save you hundreds of Dollars each month. For experienced traders, it makes sense to invest this money because they have a higher account balance than newcomers. For them, an additional return of 1 percent per month might be worth the investment.

Similarly, traders who want to make money in the easiest way possible might prefer the simplicity of a free robot. All you have to do with a free robot is sit back and let it trade for you. If you adjust your overall

For newcomers, who are often starting with an account balance of around $1,000, however, it makes little sense to invest $100 or more per month into a robot. For them, the savings outweigh the possibility of an increased return.

If you are in doubt which category you belong to, we recommend starting with a free robot. You can always upgrade later, but the money you pay for a robot is gone. So think twice before paying for a robot.

Which robot is perfect for each type of trader?

The best free robot is BinaryOptionRobot. There are very few free robots in the market, and most of them are free for a reason – nobody would pay for them. With BinaryOptionRobot, however, things are different.

BinaryOptionRobot has found a way to let your broker pay the registration fee for you. That means, you get BinaryOptionRobot for free, but BinaryOptionRobot nonetheless gets a payment they can use to offer a professional service.

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For traders who want to test the world of binary options robots with the least commitment possible, BinaryOptionRobot is the perfect tool.

For paid robots, things are a little more complex. There are many competing providers, many of which offer a perfectly valid service. For more information, we recommend you take a look at our top list of the best robots available and pick the robot you like best.

Can I earn money using a binary options robot?

Can I earn money using a binary options robot?

Robots can automate your trading. But many traders ask themselves: Can a binary options robot make me rich? To answer this question, this article will take a good look at binary options robots, how they work, and how much money they can make for you. In detail, it will answer these questions:

  • Can I really earn money using a binary options robot?
  • Can a binary options robot make me rich?
  •  Are there any robots free of any risk?

With the answers to these questions, you will immediately be able to estimate the money you can make with a binary options broker, and you will be able to find the right robot for you.

Can I really earn money using a binary options robot?

The simple answer to this question is yes. Nonetheless, of course, not all robots can make you money. When you want to know whether the robot in front of you has potential, you have to understand the difference between a good robot and a bad one, and you have to learn how to evaluate robots. Both tasks are not that difficult, so let’s take a look at how you can accomplish them.

Finding a robot that can earn you money, step 1: evaluating the robot’s accuracy

The most important indicator of a robot’s potential to earn you money is its accuracy. A robot’s accuracy defines the percentage of trades that you would win with this robot.

  • A robot with a higher accuracy will win you a higher percentage of your trades than a robot with a lower accuracy.
  •  A robot with an accuracy of 70 percent would win you 70 percent of your trades.
  • A robot with an accuracy of 60 percent would win you 70 percent of your trades.
  • With all other things being equal, the robot that would win you 70 percent of your trades would make you more money than the robot that would win you 60 percent of your trades.
  • Simply put the higher the accuracy of a robot, the better.

To estimate the accuracy of a robot, look at the robots past results. Robots trade by using a system called technical analysis that uses trading strategies that analyze the market according to precisely defined criteria. These criteria make the robot’s trading repeatable – if a strategy has worked in the past, it will also work in the future, which allows you to take a robot’s past accuracy and project it into the future.

Most robots publish a record of their past signals. Often they even evaluate these signals for you, listing the average winning percentage and other key factors along with the results. If your robot does evaluate its past signals for you, you have to do it yourself. Simply divide the number of winning signals by the total number of signals, and you know which percentage of its trades this robot has won in the past.

Finding a robot that can earn you money, step 2: evaluating the robot’s average payout

The other important value in determining a robot’s potential to make you money is the average payout. When you win a binary option, you get your investment back plus a profit. The payout determines the size of this profit.

  • With a payout of 80 percent, you get your investment back plus 80 percent of your investment in profit.
  • With a payout of 250 percent, you get your investment back plus 250 percent of your investment in profit.
  • Payouts vary slightly depending on the current market environment and your broker but heavily depending on the binary options type that you are trading.
  • If you invested $100 in a trade with a payout of 80 percent and won, you would make a profit of $80. If you invested $100 in a trade with a payout of 85 percent and won, you would make a profit of $85 and win – a free $5 gain for the same trade.
  • Simply put, the higher the payout, the better.

Evaluating a robot’s payout is a little more difficult than evaluating its accuracy. There are no lists with already evaluated criteria because your robot does not decide your final payout. Your final payout depends on your broker. Your robot will send its trading signal to the broker which you connected it, and then the broker will define the payout for this trade. When you chose a bad broker, you get a lower payout, but that is not your robots fault.

Luckily, there is one thing you can do: you can pick a broker from our top list. We have tested all relevant binary options brokers and listed the best of them in our top list, complete with their average payout. To find a good broker, simply pick a broker from this list, and you will be fine.

Finding a robot that can earn you money, step 3: combining accuracy and payout

Once you have found a robot with a high accuracy and a broker with a high payout, the odds are pretty good that this system can make you money. But what if you want to know for sure? Well, with a little bit of math, you can find that out, too.

To know whether a combination of a robot and a broker can make you money, you have to calculate the system’s winning expectancy. If the winning expectancy is high enough, the system is sure to make you money.

To calculate the winning expectancy, you have to multiply your robot’s accuracy with your broker’s total return, which is the sum of your payout and your initial invest, or, simply put, your payout plus 100 percent.

The complete formula looks like this: Winning expectancy = accuracy x (average payout + 100 percent)

The winning expectancy essentially calculates your return on an average trade. While you will never get precisely this return on a single trade, over a large number of trades, this is the average return you can expect.

  • If the winning expectancy is over 100 percent, you will make money on an average trade.
  • If the winning expectancy is under 100 percent, you will lose money on an average trade.
  • The value of 100 percent equals your initial investment. If your winning expectancy is over 100 percent, an average trade gets you all your money back and then some – you make a profit. If your winning percentage is under 100 percent, you get less than your investment back – you lose money.
  • To create a profitable system, you have to combine a robot and a broker that create a winning expectancy of over 100 percent.
  •  A higher winning expectancy indicates a more profitable system. When you have to choose between multiple brokers and/or robots, pick those that create the highest winning expectancy for your system.

Pay attention to your system’s winning expectancy, and you can really earn money using a binary options robot.

Can a binary options robot make me rich?

Okay, now we have taken the first step: a binary options robot can make you money. But can a binary options robot make you rich? After all, you are probably not trying to earn $1 here; you want to earn a lot more. For the investment in a binary options robot to make sense, it has to provide at least a sizeable profit that makes some difference financially.

How can find out whether a binary options robot can make you rich? Well, let’s do the math again. First of all, let’s understand the criteria we are talking about here.

  • Accuracy: An average binary options robot has an accuracy between 70 percent and 80 percent. Generally, if your robot has an accuracy of under 70 percent, you should easily be able to find a better robot. So let’s assume the minimum accuracy every system should be able to achieve and let’s do the calculation with an accuracy of 70 percent.
  • Average payout: The average payouts of binary options brokers range between 65 percent and 80 percent. Once again, you should be able to find a broker with an average payout of 70 percent, so let’s use this value. Please note: there are binary options types that offer much higher payouts of up to 1,500 percent, but these binary options types involve more risk, and you will win fewer trades with them. Robots work only with high/low options, which are the most common binary options type and offer the payouts that we use in our example.
  • Trades per day: Another important value to estimate a system’s profitability is the number of trades per day. When a system has a positive winning expectancy, more trades per day mean more profits and more money in your pocket. Binary options robots make between 5 and 15 trades per day. Let’s use the worst-case-scenario and calculate the winning expectancy of a robot with 5 trades per day.

The system in our example wins 70 percent of its trades, has an average payout of 70 percent, and makes 5 trades a day. How much money would such a system make over the course of one year?

Let’s calculate the winning expectancy first. 70 percent x 170 percent = 119 percent. In other words: on your average trade you can expect to make a profit of 19 percent of your investment per trade.

With 5 trades a day and roughly 200 trading days a year, you would make 1,000 trades in a year, and win 70 percent (700 trades) of them. If you keep investing the same amount for a year, you will make the same 19 percent of profit for 700 times, resulting in a total profit of 13,300 percent of your investment per trade.

  • If you invested $10 per trade, you would earn a yearly profit $1,330.
  • If you invested $25 per trade, you would earn a yearly profit of $3,325.
  • If you invested $100 per trade, you would earn a yearly profit of $13,300.

While those are nice profits, they are far from the limit. The important point to understand is that you should always invest only a small percentage of your account balance per trade, ideally between 2 and 5 percent. With an account balance of $1,000, for example, you should invest somewhere between $20 and $50. Even if you play it safe and invest only $25, this system would triple your account balance within one year. That means you could triple your investment, too, and make much more money the next year. They year after that, you can repeat the process, and so on.

Within five years, this system would grow your account balance by the factor of 3 x 3 x 3 x 3 x 3, which is 243. Even if you started with an account balance of $1,000, you would now have $243,000 – that would qualify as making you rich.

In this way, binary options can use the power of cumulative interest to make you rich. All you have to do for this system to work is combine a broker and a robot that create a positive winning expectancy. After that, you simply let them work their magic.

Are there any robots free of any risk?

Now that we have established that a binary options robot can indeed make you rich, we have to take a look at the other side: the risk factor. How risky are binary options robot? Are there robots that are free of any risk?

Well, let’s get the most obvious point out of the way: obviously, there are no robots that are completely free of any risk. Even if you have a system with the highest winning expectancy in the world, there is always the chance that an incredible stroke of bad luck could lose you 100 trades in a row and ruin you. There are no certainties in life, and there is always a risk.

With a positive winning expectancy and an investment of 2 to 5 percent of your overall account balance per trade, you should be fine, though. With such a system, you have done everything to contain your risk, and similar systems have worked for thousands of traders before you.

This leaves you with the task of testing your system well and knowing your winning expectancy. Avoid cutting this process short. Most broker’s offer demo accounts that allow you to trade risk-free and most robots provide a 60-day money back guarantee, which is why you can easily afford to take your time and have the tools to go through the entire process risk-free – use them.

Conclusion

Binary options robots can earn you money, and they can even make you rich. All you have to do is create a system that combines a robot with a high accuracy and a broker with a high payout. On our website, you find lists with links to both. Calculate the winning expectancy of your system, and if it is over 100 percent, you should be fine. Enjoy!

 

nadex

Why You Should Consider NADEX Your Preferred Broker

NADEX (North American Derivatives Exchange) is currently one of only two online operators licensed to offer binary option trading in the US. US authorities are very strict when it comes to regulating and licensing any sort of financial activity involving derivatives, and that’s probably the top reason why you too should consider trading at NADEX. Having to comply with very strict rules and having to be insured against every possible eventuality, is just a small part of being regulated in the US as a binary option trading platform. In order to see why a US “broker” is so much more attractive for traders than an EU-based one, traders should understand the fundamental differences between the two business models.

Differences Between EU and US Binary Option Operatorsb

Binary option brokers currently operating under EU regulation (we may as well call them CySEC brokers, because the majority are licensed by the Cyprus Securities and Exchange Commission), work a business model in which they are the only market maker. They provide the pricing on all the underlying assets they feature and therefore, in essence, they trade against their own customers. This fundamental conflict of interest gives birth to a number of awkward and downright unethical situations. First of all, such a broker trades against its own clients on its own platform, through asset-prices he fully controls. Secondly, this business model is NOT a zero-sum game. Traders can never actually be very-very successful, because if they are, they directly threaten the existence of the entity whose job it is to pay them out. As you can see, there are several things wrong with this picture indeed, and US authorities will simply never adopt it.

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The US model is different, and as you will see, it’s inherently fairer to the trader as well. US “brokers” are called exchanges, because they are not brokers at all in the European sense of that word. They provide the platform where all the trading takes place, but they are not a party in the actual trading process. Instead, traders trade against other traders, and traders themselves act as the market makers. To make a long story short, instead of being under the control of a single, central authority, pricing on US binary option trades is shaped by the supply and demand dynamic. Thus, traders themselves act as market makers in the equation. What this means is that every time one buys a binary option at NADEX, another trader needs to be selling it. Traders are also free to set their own asking or selling prices for various options. The bottom line is that the US binary option business model is indeed a zero sum one. Whenever someone wins something, another trader loses that same amount.

How do exchanges like NADEX make their money then? Simple: they charge commissions on every trade. It costs traders a bit of money to enter a trade, and in case they win, it also costs them some money to exit. Those who lose a binary option trade, do not have to pay any exit fees.

The above is – in a nutshell – why US binary option exchanges like NADEX should be among your favorites.

What else should you know about NADEX trading?

With such a radically different business model, come radically different trading mechanics. First of all: US binary options are range-bound. The value of such an option is always between $0 and $100. It is within this range than traders can buy and sell these options. The Bid/Offer is what determines the actual value of every option. As soon as it’s purchased, the value of the option as well as its Bid/Ask begin fluctuating. As it draws closer to expiry, the option makes it clearer and clearer which way it’s leaning, and this will be accurately reflected in its price. A winning binary option goes all the way to $100 upon its expiry, while a losing one drops to $0. Options can be exited at any time, to lock in profits or to put a stop to losses.

What this means is that while the loss potential is definitely capped, so is the profit potential, with every single option. This can be countered through the purchasing of several options instead of just one, thus allowing the profits to build up.

Given how traders themselves are the market makers, liquidity is a major issue for US binary option providers. Thankfully, NADEX have healthy liquidity and they can therefore offer pricing and trading on an impressive number of underlying assets. What this problem means is that it is extremely difficult to start up a US binary option operation from scratch. If there are no traders, there is no pricing, and there are no trading opportunities, which means that there’s no way to draw in new traders.

Now that you understand how US binary option operators like NADEX work, you also understand why you should consider them an attractive trading destination. While it is focused on US-based traders, NADEX accepts traders from all over the world.

Automated Trading Systems

The Pros and Cons of Automated Trading Systems

Automated trading systems are all the rage lately, as they have quite literally taken the binary option trading world by storm, in various shapes and sizes.

What exactly are these automated trading systems?

An automated trading system is defined as a program which is capable of generating its own trading signals on one hand and acting on these signals on the other. Some automated trading systems are also capable of performing their own capital-management.

The advantages of automated trading systems

The advantages of these auto traders – also known as robot traders – are fairly obvious. Generating proper trading signals is by no means a walk in the park. It takes solid technical analysis skills and knowledge, and time to apply the various mathematical schemes. One can only consider a trading signal a solid one, once it’s confirmed by at least 4-5 technical indicators. On top of all that, fundamental analysis has to point to the same conclusion as well. While all this is fairly easy to sum up, in practice, it’s rather difficult to execute. This is the main appeal of auto traders. They do all the dirty work, so all one has to do is to set a few parameters and lean back.

Some traders use their automated trading systems in manual mode, which means that while they rely on it to generate trading signals, they apply those signals themselves. This approach has its hazards, as sometimes the resulting signals are so weak that if one blinks, he misses the ideal time to apply them.

The bottom line is that trading systems essentially do all the work for traders. This way, beginners don’t have to take months or years to learn profitable trading. All they have to do is to invest a relatively small amount of money with the right auto trader, and their profits start rolling in on auto-pilot.

While some auto traders cost money, others are offered for free, and there are even automated trading systems that are built by traders according to their own needs. There are brokers out there who offer platforms which allow the construction of these auto traders from scratch. On such platforms, traders can share their robots and they can grab the robots of other users for free. It’s easy to see why such a setup opens up a whole world of new possibilities in the realm of automated trading.

If all that sounds too good to be true, it’s because it sometimes is…and that brings us to:

The disadvantages of automated trading systems

Automated trading has struggled with a conundrum since its inception. Some of the market analysis elements needed for profitable trading are easy to automate, while others simply cannot be translated into exact science.

Technical analysis, with its chart- and candlestick patterns, is an easy target for software creators. These mathematical analysis elements thrive in a automated environment. Fundamental analysis on the other hand, does not lend itself well to automation. This is why the majority of auto traders out there are based solely on selections and combinations of technical indicators. That leaves them handicapped in comparison with human experts who are able to toss their fundamentals-expertise onto the top of the technical aspects. There are auto traders out there which claim to have such human experts working on their signals, but most likely, such claims are fake.

This brings us to another major auto trading problem: scams.

Scams have found extremely prolific breeding grounds in auto trading. In fact, the majority of auto traders being pushed through fancy videos and scammy-looking websites, are scams indeed. The perpetrators of these scams use various wild theories to explain why their software is better than anything else out there. Most of the time though, their prized technology is comprised of a handful of technical indicators pushing out dubious trading signals. Needless to say, such scam traders will gobble up the deposits of the victims quite quickly.

As mentioned above, there are platforms out there which allow traders to build their own trading robots. While such platforms usually come with handy robot-building wizards too, the bottom line about them remains that if one wants to build an advanced robot, he/she will need some thorough technical analysis knowledge. These things don’t just grow on trees, you know…

Another problem with robots is that given their vulnerability to real life, market-swinging events, one needs to keep an eye on them all the time. While they do indeed do their own trading, at the end of the day, a human trader needs to perpetually hold their hands.

Traders who record the best results with auto traders, always make sure they turn them off before major economic and political announcements that are expected to shake up the markets.

To make a long story short: though attractive as an idea, automated trading systems aren’t the golden solution to all your financial woes, despite what some scammers preach. They can be worked for profits, but it takes a lot of tinkering and fine-tuning to get them to function properly.

 

 

Best Binary Option Brokers

The Best Binary Option Brokers and Trading Platforms

While the binary option trading industry is indeed dominated by a handful of major technology providers (like Spot Option and Tradologic) it seems like the most successful, popular and attractive brokers all have their own, proprietary trading platforms. Learn more in our guide to the best binary option brokers and trading platforms.

What are the best binary option brokers?

There’s no point in beating about the bush: the most popular broker out there is IQoption, and when it comes to scrutiny, they do indeed pass with flying colors, in just about every way. These guys have put together an offer no red-blooded binary option trader can resists and no other broker can match. The minimums on first deposits in the binary option industry are mostly in the $100-$250 range. IQoption feature a minimum requirement of $10 on their first deposits.

That is indeed quite unheard-of.  Some will be quick to point out that such a small deposit will not give traders a reliable starting point, but they’d be wrong. This $10 minimum only means traders have the freedom to size their deposits just about any way they want to. They can go with $50, $200 or $5,000 too. It’s entirely up to them. Kudos to IQoption for giving their traders such a wide range of choices in this respect.

In regards to the minimum trade amount, IQoption only require their traders to risk $1. Again, this may not be the most optimal way to approach trading, but it leaves plenty of room for traders to maneuver capital management-wise.

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As far as option types are concerned, IQoption aren’t really in line with the rest of the industry: they only offer two types of options. Their Turbo options expire in 5 minutes. The other option type consists of options which expire in more than 5 minutes. This is perhaps the only area where they leave room to improvement. Their proprietary platform didn’t allow any auto-trading for a while there, and this was the other factor cited as a disadvantage at the site. They have recently come up with something much better though: they now have a platform that allows traders to create, to back-test and to share trading robots right there, on the spot. This feature is a first in the binary option industry and it may indeed turn out to be a revolutionary one. Those who cannot create their own trading robots, are free to simply take one of the robots created by someone else and to put it to use. Robot creation isn’t the rocket-science one would think it is at first glance, either. The IQoption platform features a number of superb tools in this respect, which make the creation of a working auto-trader a cinch for everyone with a basic understanding of technical analysis.

Another superbly popular trading destination is NADEX. The great thing about NADEX is that it’s licensed in the US and as such, it legally accepts US-based traders. The operation is regulated by US authorities and it is therefore subject to much stricter laws than its EU counterparts. The business model adopted by NADEX is different as well: it’s more of an exchange-based one, which means that there is no market-making monopoly. This fact alone makes the whole proposition much fairer from the perspective of the trader. While the great regulation and the exchange-based model are both extremely attractive to traders outside the US as well, it has to be said that trading itself works differently at NADEX, and thus, people who make the move there from a CySEC broker, may have to actually learn to trade over again.

Its peculiar business model makes NADEX a great fit for some of the trading signal services out there, especially those that provide complex signals.

Another popular broker is Banc de Binary. Banc de Binary use the ubiquitous Spot Option platform, therefore it’s safe to say there’s nothing special in the way they actually go about the main part of their business. When it comes to regulation though, Banc de Binary are true trail-blazers. They’re currently licensed by CySEC and a number of other national authorities world-over. They even worked in the US for a while, but they were forced to concede that market. To this day, they’re always with an eye on the latest requirements of national regulatory bodies, and they seem committed to following the rules to the last letter. Their latest move in this sense included the termination of all bonus-based promotions, which encouraged traders to invest more. The banishment of such bonus-based promotions has recently been requested by ESMA, who have deemed the MO of these deals unfair and abusive towards traders. Indeed, there are scores of such promotional deals out there, which never actually give traders any sort of a chance to see any money off them.

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To make a long story short, the best and most popular brokers/trading platforms all work a number of variables of the binary option equation well. They offer good regulation, a fair trading environment, flexible requirements on deposits and trades and top-notch trading tools. That there is indeed the best recipe to long-term success in the binary option industry.

Stop Loss Order

Stop Loss Order

A stop loss order is a special form of market order used by professional traders to limit their losses. Stop loss orders are especially interesting for binary options traders because they usually occur in bundles at strategic places.

When the market reaches the price level of these orders, they get triggered automatically. As a result, there is a strong incline in supply, which leads to a rapid decline in prices. By learning to identify the spots stop loss order usually occur in, a trader can establish a secure way to finding good investment opportunities.

 

What is a stop loss order?

Let us imagine a trader has bought an asset at price of $100 because he predicted rising prices for the asset in the near future. He also knows that his prediction becomes invalid if the price of the asset should fall below $98. To make sure he does not lose more money than necessary if his prediction was wrong, the trader wants to make sure the asset is sold automatically when its price falls to $98.

That is what a stop loss order is for. The trader places a stop loss order at $98. When the market reaches that price, his asset is sold automatically.

For example, stop loss orders are usually placed at support levels. If the support level is broken it turns into a resistance, which creates an entirely different environment for most investors. They will therefore liquidate their long positions and open new short positions, which creates supply in two ways. The same happens at trend lines, in continuation patterns, and in reversal patterns.

The strong price movement created by stop loss orders is called the breakout. As a binary options trader, you can profit from the breakout in a number of ways:

  1. You can invest in High / Low option in the direction of the breakout. Make sure to choose an appropriate expiration time.
  2. If you can predict the distance of the movement, you can invest in a Boundary option or a Touch option.

 

Trading Strategies in Binary Options

Trading Strategies in Binary Options

As a trader, you have to pay your bills like anyone else. Therefore, you will have to meet a certain income goal with your trading. Choosing an improper strategy might make that impossible. Your ability to adjust your trading strategies in binary options according to your needs, will greatly determine your trading success. Whether you chose a strategy based on trends, technical indicators, candlestick formations, or gaps, you always need to be able to tailor your strategy according to you needs.

One of the most dangerous situations any trader can be in is to trade an effective, money making strategy, and still not make enough money to cover his cost of living. In this situation, most traders start looking for more trading opportunities to make more money.
Since many of them do not know how to adjust their trading strategies, they make the mistake of investing outside their original trading strategy. Desperate for more money, they fall back into old habits of making random trades without a strategy, and start losing money instead of making more. This viscous cycle will speed up until they are in deep trouble. It is therefore very important to know how to adjust your trading strategy according to your needs.

How to evaluate trading Strategies in Binary Options

In conventional theory, the success of any trading strategy is determined by two factors:

  1. The percentage of winning trades you will have with this strategy, and
  2. The percentage you will win with each trade.

By multiplying both numbers, you will get your total winnings with this strategy. As long as the result is over 100, you will make money with this strategy. For example, if a strategy enables you to win 70% of your trades, and you get 1.7 times the invested amount with each winning trade, the result is 119%. The result is over 100, which means you will make money with this strategy.

This, however, only tells you whether or not your strategy will work. It does not tell you how fast it will work. If you’re strategy is to trade double tops and double bottoms in hourly charts, for example, you will probably only get one trading signal a day, even if you are monitoring dozens of assets and markets at the same time. Sometimes you will not even get a single signal a day. If you had been planning to make four or five trades each day, this will turn into a big problem for you. After some time, you will inevitably realize you need to be making more money.

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How to adjust your trading strategy properly

Trading Strategies in Binary OptionsThere are a number of ways you can adjust your trading strategies in binary options without completely abandoning your original strategy. First of all, you can try to monitor more assets for signals. This is not always possible, and in most cases it cannot triple the number of signals you can find. If you are trading rare signals like double tops, you therefore have to look for other solutions. One possible option would be to switch to a smaller time frame. If you are currently trading an hourly time frame, you could get significantly more signals by switching to a 15-minute timeframe.

Keep in mind, though, that if your old strategy was working for you, almost every adjustment to generate more signals will lead to a reduced quality of each individual signal.

In other words: You will be able to invest in more trades, but you will win a smaller percentage of them. Still, if you triple the number of your signals, for example, and at same reduce the percentage of winning trades from 80% to 70%, this trade off is well worth it. On paper, your strategy might look worse than what you started out with, but over the course of a month you will make more money. In the end, that is the only number that matters.

Binary Options

In today’s market no other investment opportunity attracts as much attention as binary options. There are three main reasons for this:

  1. Binary options are easy to use
  2. Binary options are fast
  3. Binary options offer big returns

In summary, we are talking about a form investment that’s simple, quick and potentially very profitable. Now, don’t get over-excited. As with all forms of investments, there are risks associated with binary options too. You must remember that as the same time as a binary trade can earn you a substantial profit, it can also cost you. If you lose a binary trade, the money you invested in it is gone.

This means that as alluring as binary trading is, you need to approach this form of investment with a cool head. Don’t rush into anything. Instead, why don’t you start by learning more about the exciting world of binary options by having a look around this website? Here at binaryoptions-info.org you will find a wealth of knowledge about this very exciting way to make money in international finance.

Binary options: an easier way to invest

As we have already made clear, binary options are easy to understand. If you are new to this market, allow us to explain. A binary option is a prediction you make with a binary broker. Your prediction will be with regards to the price movement of an asset over the course of a set timeframe. An asset in this instance can be a stock, a commodity, a currency, or a stock market index. The timeframe in question can be from 30 seconds to several hours.

So, for the sake of this example, let’s say you predict that in the next 60 seconds the price of oil will fall. You make this prediction in the shape of a binary option. That is what the binary option is: a prediction that the price of a specific asset will move in a certain direction within a certain timespan. The binary broker will tell you what percentage of your investment it will pay you if your prediction is correct.

So, if the price of oil really did go down – it doesn’t matter by how much – in the 60 seconds of your binary option’s running time, you won. Normally an option like this will pay out in the region of 70-80%. That means that for an investment of $100, you made between $70 and $80 profit in 1 minute. It’s easy to understand why binary options are so popular.

This is quite simply the easiest way possible to make money on the markets. If you want to trade in commodities like oil by actually buying options, you would need a commodities broker. For you to invest in oil, your trader first needs to find someone who will sell you an option for oil. Then, when you want to sell, it’s the same process in reverse. And don’t forget: your broker will charge you for every trade you make.

That’s the best thing about binary options: you don’t buy or sell anything; you simply make predictions. And when your predictions are correct, you get handsomely rewarded. No hassle, just easy, fast business.

Yes, you could make money as a binary trader

How much money you can make on binary options depends on a number of variables. The most important is obviously how good you become at calling the markets. If you learn how to make reliable predictions, and consistently make winning trades you will soon start to accumulate healthy profits.

Other important factors that will determine your rate of success as a binary trader will include among others:

  • Your funds – the bigger investments you make, the more money you can make. 70 % of $5000 is a lot more than 70% of $5. Having said that, this is not the sort of business where you need a fortune to get started. If you keep making those $5 investments, and you do a good job, soon you’ll be able to roll with the big guys.
  • A good strategy – it is very important that you quickly establish how you want to play the binary market. Are you a risk adverse trader who prefer to make cautious trades, or do you thrive on risk, and perform best when the stakes are high? Either way, it pays to stick to one form of trading – high risk or low risk – consistently over time.
  • Clever money management – when you invest in a binary option it is crucial to get the size of the investment right. If you invest too much, you risk suffering crippling losses. If you invest too little you return won’t be sufficient to make a difference to your balance. The only thing that should determine how much you invest is how much money is in your account. Our advice is to invest about 3 % of your money in each trade.

There is a lot of money to be made in binary trading, but only to traders who are smart and make wise decisions. Learn how the markets work and study binary options before you even get started. Then, stick to your strategy, manage your money well and you could be on your way to a healthy profit.

How to get started

It is very easy to start your career in binary trading. First of all, you ought to spend some time familiarizing yourself with the business by reading our informative articles here at binaryoptions-info.org.  This will give you an introduction to the basics. Once you have a better understanding of what binary options are and how they work, it’s time to open an account with a broker. You do that in a couple of minutes by following these easy steps:

  1. Choose a broker from our list of recommendations
  2. Register by filling in a quick online form at the broker’s website
  3. Transfer money to your trading account
  4. Start making money!

Now, if your broker offers a free trial there’s an additional step that we urge you to take in addition:

5. Test out the broker’s trading platform risk-free with pretend credits

By taking this additional step, you can gain firsthand experience of binary trading without risking any of your own money. It will enable you to experiment a little and get the rookie mistakes out of the way before you get down to serious business.

Some helpful hints for newcomers

If you are new to binary trading you might feel slightly overwhelmed by all the information and jargon that you have probably already come across when researching the subject online. This is nothing to worry about. Even though there are some new expressions and skills you need to learn, it still holds true that binary trading is the easiest, most accessible form of investment that exists.

To help you get started, here are some helpful hints you might want to consider:

  • Signals can boost your performance – binary signals are recommendations generated by highly specialized computer software that scan the markets looking for trading opportunities. By subscribing to signals for a monthly fee, you can trade like a pro straight away.
  • By studying technical analysis you can learn how to read the markets – the markets move in certain patterns. Technical analysis is the systematic study of these patterns. By mastering this art you can learn how to predict the market’s future movements – the essence of binary trading.
  • A robot lets you trade on autopilot – a robot is a very sophisticated form of trading software. It will process an enormous amount of market information much faster than any human brain can. When it discovers a good trading opportunity, it will automatically execute the trade on your behalf. You literally won’t need to lift a finger.

If you would like to give your binary trading a flying start by subscribing to binary signals, you will find links to a number of reliable providers here on our site.

If you would like to learn more about technical analysis, you will find several articles on this subject too. In addition, many binary brokers offer a lot of helpful and educational materials in order to help you master technical analysis.

Should you prefer to use a robot to take care of your trading, we recommend that you try BinaryOptionRobot. This is without a doubt the best robot out there at the moment. Best of all, it is free to use for traders. Instead, the cost is covered by your binary broker. Most other robots charge subscribers considerable amounts of money for their service..

Strategies for Boundary Options

Strategies for Boundary Options

Choosing which sort of binary option to trade with is a strategic decision. You need to keep strategy in mind when you make all trading decisions. This is no exception. In the case of boundary options, we are talking about a binary option that offers a higher return than the basic high/low option.

In contrast to most options, it does not require traders to predict in which direction the market will move. Instead it is all about foreseeing whether the price of an asset will move beyond a certain range or not. If you would like to know more about trading strategies for boundary options and make money on binary options, please read on!

Which strategies for boundary options can you apply?

The unique plus-point of boundary options is that you won’t have to predict in which direction the price of an asset will move in order to win the option. All that’s required is for you to correctly call whether the price will move sufficiently far in either direction, i.e. up or down. This is not all that tricky. Even less so if you use momentum indicators to help out.

If you use a 10 minute chart in your trading and you invest in a boundary option that has a 30 minute expiration time, the market will move three periods over the course of the option’s running time. This information is easy to get, but valuable none the less. It can be used to generate any number of predictions with regards to future market movements, the expected market range included.

One way to figure out how far the market will move during the three periods until your boundary option’s expiry time is to use a momentum indicator. One such momentum indicator is the average true range, or ATR. It measures how big the market movements were in each of the recent periods. In order to ascertain the largest movement during a set time frame, you simply multiply the ATR by the number of periods that remain until your option is set to expire.

For this value to be exact, the market would need to move in only one direction the whole time. This is unlikely to occur, so you ought to adjust the value accordingly. You can do this by multiplying the ATR’s value by a set factor. Some traders use 0.5. Alternatively you can use another indicator in order to make a variable factor.

These methods are every bit as efficient as each other. What matters is that you are able to come up with a value that determines how far the price of the relevant asset will move during your boundary option’s running time.

Next, you simply compare the value you have found with the difference between your boundary option’s target prices and the applicable asset’s current price. If the target prices are closer than the market reach you have estimated, it is advisable to invest in the boundary option. This is because the price is likely to reach one of the option’s target prices, the high or the low, during the applicable time frame.

On the other hand, if the target prices are further from your estimated market reach, it will not be advisable to make such an investment. This situation would indicate that the price is unlikely to move sufficiently, either up or down, to reach either of the target prices.

Trading effectively with boundary options

In order to make the most out of this kind of strategy there is no need to generate a trading signal. It doesn’t matter which direction the market will move, just as long as the movement – in either direction – is sufficiently strong. Therefore, you don’t have to worry about the future direction of the market.

Having said that, this strategy might work best when the market is moving in only one direction. Some traders feel that in a market with a strong movement, either down or up, the price of an asset is more likely to burst out of a boundary option’s price limits. For this reason, such traders will try to identify trending periods, and execute boundary option trades during them.

In order to do this, you can use a lagging indicator. Many successful traders find that using moving averages, preferably in conjunction with such strategies as the three moving average crossover technique, helps identify whether or not the market is in a trend, and in which direction the trend is moving.

You need to keep in mind, of course, that even when the market is in a trend, corrections will none the less occur quite often. This has led many traders to maintain that all market environments – trending and non-trending – are suitable for the boundary option strategy we have outlined. In other words, there is no need to determine whether the market is in a trend or not. You will simply be complicating matters, and wasting your time in completing the unnecessary step of looking for trends. In this matter there is no way to determine a perfect answer. Really, it boils down to your preference as a trader..

Strategies for Currencies

Strategies for Currencies

When it comes to asset types used in boundary options, few are as popular as currencies. In the following article, we will introduce you to three profitable binary option strategies that are specially geared towards currencies.

Trading strategies for currencies

Trading in currencies is defined by two unique hallmarks:

  • You can trade in currencies around the clock, every working day
  • The price of a currency is not only determined simply by supply and demand, such as is the case with a stock, listed on a stock exchange, but also external forces outside the market place such as trade balances, economic indices and so on.

These two defining factors can be used to generate solid strategies for currencies in binary options trading.

Trading long term trend lines

By definition, binary options are short-term investments. For this reason, it is impossible to use them to profit from a conventional long-term trading strategy in currencies. However, the great influence that longer lasting trends have on the market is also reflected within shorter time frames. One example of this is when a long term trend causes the market to turn. This sort of reversal is an opportunity to trade in the short term.

You do this by identifying the trend that will steer the market to the trend line. Thereafter, you should be on the lookout for a trend developing in the other direction, close to the trend line for the longer term trend. Once you spot such a trend, you invest in the direction it indicates with a high / low option. Use a long to medium running time. This sort of strategy does not produce many signals for each asset, but such signals will be quite reliable. For this reason, it is paramount that you follow several assets, not just one.

Another smart move is to keep an eye open for long trends in more than one time frame. Remember that a long term trend can appear on time frames of one hour and more. You should also follow the daily charts.

News and binary currency trading

The prices of currencies rely to a great extent on basic circumstances. Changes in crucial financial indicators can have a very great influence on a currency pair. When news break of events such as a central bank altering its base rate or how much new money it issues, you will see a considerable reaction in the currency markets. This means that you can benefit from such events as a binary trader.

You need to be cautious here. The way the market will react to an event is in no way set in stone. It can happen that good news will cause a currency to lose value because traders had expected the news to be even more uplifting. Conversely, bad news that isn’t quite as disastrous as traders had feared, can cause the markets to rally. The lesson here is to trade not on the news itself, but how the market will react to it. Smart traders wait to invest in touch options or high / low options until they have ascertained where the market wants to go.

You cannot know with anything like certainty exactly how the market will react to a major news event like this. However, you do know that there will be a strong reaction. This means that big news make for great trading opportunities in boundary options.

Deviations in Momentum Indicators – spotting a weakening trade

When deviations appear in momentum indicators, for example the relative strength index (RSI), this can give trend-following traders an early indication that a trend is weakening. Such a divergence is created when the markets produce a new extreme, be it high or low, but no such extreme is formed by the RSI. This situation is a clear signal that a trend is getting weaker.

This means that traders who follow trends can rely on this signal to predict an upcoming reversal. They will stop investing in the continuation of the current trend. Then wait for further indications that a reversal is due, and then invest in this new development once it occurs. Such a strategy can be used to make binary currency trades with a high degree of confidence, and a solid win ratio..