Many traders look for ways to execute a trading strategy which can remove the emotional aspects which so often hinder trading decisions. Even mechanical trading systems, executed when an objective signal is made to enter the trade, can often be negatively affected by the thought process and emotion of the trader. The answer for many forex traders has been to automate trading so that a system enters and exits the trade within the parameters set by the trader. This means that when a signal is generated the trade will be entered by the software programme, allowing minimal interference by the trader. Binary options, however, and their web-based platforms make this form of trading difficult as most require the trader to manually purchase the options without the possibility of creating an automated EA. Despite this, there are several binary options robots available which not only filter the market for trading opportunities but can also enter these automatically on the trader’s behalf.
Binary options robots that generate trading signals
The traditional solution for binary options traders looking to automate their trading is to use a binary options robot which can provide trading signals which the trader can then enter manually. This involves the use of a piece of software which contains an algorithm to look for particularly high-probability opportunities to profit by purchasing options. These robots and the signals that they generate attempt to remove the inhibiting factors that traders face in searching for profitable setups. Binary options software such as this will allow a trader to run the programme in the background and wait for the trade alerts. The simple execution of the trade is then all that is necessary based on the signals generated. Although this sounds like an excellent way to profit from binary options it is important to be aware that many binary options robots are flawed and will not be profitable through all market conditions. In fact, the claims by some software providers may literally be too good to be true.
Automated binary options trading
An alternative way to use binary options robots without having to manually enter the trade is to allow the software access to your trading platform. Again, this is a risky option with some robots claiming to be able to detect the execution buttons within the platform and automatically enter the trade as soon as the trade signal is confirmed. Whilst until recently this was one of the only ways to automate the robots, some online brokers are now introducing the possibility of allowing binary options to be purchased through platforms such as Metatrader. Not only does this provide an excellent charting and tools software package but it means that binary options robots can be fully automated and thoroughly back tested using the ‘strategy test’ feature. The reliability of using highly-respected software such as Metatrader is a particularly attractive and significant step forward in the world of binary options.
The choice to purchase or design a robot
It is worth noting that the common choice between binary options traders wanting to automate their trading has been between purchasing or designing a trading robot. There is an understandable scepticism surrounding purchasing robots, especially those that claim to provide signals generating vast profits, and it goes without saying that these robots should always be thoroughly back-tested before real-time use. With the increasing ability to use Metatrader to enter trades the ideal alternative to this is to design a custom robot algorithm based on a personal trading system. Whilst this may take some time and effort, the end product of a profitable and tested robot is certainly worth the time and dedication.