A binary options robot is software or an algorithm designed specifically for automated binary trading. It is akin to similar software developed to automate forex trading decisions.
Binary options robots are specially created to help novice traders make profits in the binary options markets, but even experienced traders can utilize them whenever they do not have the time to monitor the market.
Binary options robots have existed since the early 2010s and continue to attract many players in the binary options market. Most of them are actually not regulated, but the partner brokers they work with have EU regulation via CySEC of U.K.’s FCA.
In order to understand how these robots work, we will need to differentiate the two broad categories of binary options robots. However, it is also good to note that all binary options robots depend on trading signals generated by various algorithmic tools.
Downloadable binary options robots are certainly not the most common in the market, but they do exist. These robots require traders to download and install the software in their computers in order to begin using their services.
A good example of this type of robot is binary-option-robot.com. It comes loaded with various tools including three systems that traders can choose to use when trading: Classic, Martingale, and Fibonacci trading systems.
With this software traders can also choose which indicators to apply in the algorithm for generating trading signals including MACD, the Parabolic SAR, and Relative Strength Index, among others.
These are the types of tools that most downloadable binary options robots use to come up with signals, but there are others that also have custom indicators.
Custom indicators are common in forex trading, but over the last few years, binary options trading software developers have come to embrace the analogy of using them to make their own trading systems.
These are advancements made to the traditional binary options signals by developing a platform that allows traders to automate their trades. Ideally, most of the web-based binary options robots have experts working behind the scenes to deliver signals to traders, but they too do depend on a selection of technical indicators.
Some of the notable examples in this category include BinaryHedgeFund.com and BinaryOptionRobot.com, among others.
Now, we also have other autotrading robots that are typically designed in the image of the disruptive copy/social trading platforms. Good examples in this category include BestoCopy and CTOption’s Binary Replicator.
Generally, most of these binary options robots are offered at no charge and all that is required is for traders to register and fund their trading accounts to start trading with the robots.
While the emergence of forex trading robots did play a major role towards the birth of binary options robots, the main reason behind creating binary options robots was to help more people join the binary options market.
Binary options are much simpler to understand than forex trading when it comes to tactics and strategies. They are straight forward, but still, not everyone who trades binaries is profitable.
Therefore, experienced binary options traders, brokers, and other software developers had to find a way of making the market more attractive to the public. This was done by creating an environment where anyone can profit, thanks to binary options robots.
Binary options robots can also be used sparingly by experienced traders during times when they are not available to monitor the market.
I said that binary options robots can be used by anyone though they are typically made for novice traders. But even so, not every novice trader should rush to using binary options robots. Some of these robots are provided by top brokers, which also offer other services alongside the robots.
The most important thing is first to determine your goal in binary trading. Are you going to use robots for the rest of your binary options trading career? Are you focused on learning more about binary options so that you can eventually trade binaries individually? These are the kinds of questions that you need to answer before deciding to use a robot.
With robots, you could become reluctant to learning more about the market, thereby becoming forever reliant on them. The thing is that they are not always successful and it is better to hold some level of knowledge of the market.
There are also several scams out there, and thus, you should be careful which service/product you choose.
In fact, traders with some bit of experience/understanding of binary options are more suited to evaluating the success and the system of a particular binary options robot, than a novice trader.
The bottom line is that Binary Options Robots are technically made for everyone interested in using their services, but you are advised to evaluate your options, goals and ability in order to be able to identify the right robot/service for you.