In the past, to make trades in any market, you have to carefully conduct some thorough analysis. This analysis should include fundamental analysis – which involves checking market news and events around the world, to see how they will affect the prices of financial assets.
Beyond that, you have to look at a set of charts, indicators and oscillators, searching for price patterns that may suggest the future directions of prices of market instruments. This is known as technical analysis. After then, you can now make your trades.
However, things are not always as easy as they sound. Before you can be equipped enough to conduct the above analysis, you must have undergone a considerably thorough learning process. This will require you committing some length of time to work. That was in the past. Today, with automated trading software you can sit back and watch algorithms do the job for you.
Automated software comes in different names – Trading robots, Trading EA, Algorithmic trading, amongst others. Below we discuss everything about robotic trading as it applies to forex and binary options trading.
The robot trading software is something that you download to your computer or another device once registered with a broker. A download is not always required; sometimes you can start using them online via a website. Trading using this method is known as automated or auto trading and is used by “auto traders” that want to free up their time and increase their success rate.
Like any computer, the capacity to research, consume and analyse data is much higher than the human mind so the machine can process all the data much quicker than any human being without emotion or instinct.
By using this process, more information is gathered at a much quicker pace allowing for more effective, profitable trades using an array of automated trading systems. The capacity to trade becomes much more and the number of successful trades increases. After the signal is generated, the binary robot is using a special program that places the trade according to settings provided by the user. Trader than only has to wait for the result.
There are robots who place trades even when the trader is offline, but we recommend using only software that requires users to be online, as such approach promises better money management, and helps avoid unexpected losses.
Some traders, however, prefer to keep control over their trades rather than giving everything over to the robot, and this is where trading signals can be a viable alternative.
Trading signals are services that provide advice and information on which trades to make. You still need to make the trades yourself, so you remain in control but the advice on what trades to place is given to you. It’s great for people who might not be good at reading the markets, depending on if the service you use is good, of course.
There are some “scam robots” where the purpose is to con the investor out of their money, and they don’t work. There are tell-tale signs that you should watch out for as to whether a service is legit or not. These include no contact details for customer support, consistently bad reviews, a short operating time and only a few assets available.
Some unfortunate investors aren’t always able to spot online scams and can lose a lot of money when they should have been making it. Before they notice there is anything wrong they could already have made many trades. There are things to look out for to try and prevent this happening, but we highly recommend using our advice and recommendations to ensure that you register with a trusted and reputable binary robot software service.
Other upsides to binary option robot trading are listed below:
Can Respond to the Markets Fast
Since computers respond immediately to changing market conditions, automated systems are able to generate orders as soon as trade criteria are met. Getting in or out of a trade a few seconds earlier can make a big difference in the trade’s outcome. As soon as a position is entered, all other orders are automatically generated, including protective stop losses and profit targets. Markets can move quickly, and it is demoralizing to have a trade reach the profit target or blow past a stop-loss level – before the orders can even be entered. An automated trading system prevents this from happening.
Helps to Maintain Trader Discipline
Because trade rules are established and trade execution is performed automatically, discipline is preserved even in volatile markets. Discipline is often lost due to emotional factors such as fear of taking a loss, or the desire to eke out a little more profit from a trade. Automated trading helps ensure discipline is maintained because the trading plan will be followed exactly. In addition, “pilot error” is minimized. For instance, if an order to buy 100 shares will not be incorrectly entered as an order to sell 1,000 shares.
One of the biggest challenges in trading is to plan the trade and trade the plan. Even if a trading plan has the potential to be profitable, traders who ignore the rules are altering any expectancy the system would have had. There is no such thing as a trading plan that wins 100% of the time. After all, losses are a part of the game. But losses can be psychologically traumatizing, so a trader who has two or three losing trades in a row might decide to skip the next trade. If this next trade would have been a winner, the trader has already destroyed any expectancy the system had. Automated trading systems allow traders to achieve consistency by trading the plan.
In summary, the benefits of the binary option robot are:
First, you will choose a platform and set the parameters of your trading strategy. You’ll use your trading experience to create a set of rules and conditions, and then your custom algorithm will apply the criteria to place trades on your behalf. These factors are normally based on the timing of the trade, the price at which it should be opened and closed, and the quantity.
One major concept in automated trading is algorithmic trading. Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.
The defined sets of instructions are based on timing, price, quantity, or any mathematical model. Apart from profit opportunities for the trader, algo-trading renders markets more liquid and trading more systematic by ruling out the impact of human emotions on trading activities.
Auto trading enables you to carry out many trades in a small amount of time, with the added benefit of taking the emotion out of your trading decisions. That’s because all the rules of the trade are already built into the parameters you set. With some algorithms, you can even use your pre-determined strategies to follow trends and trade accordingly.
We should recall that binary options trading Ghana is often referred to as a robot. No matter the binary option auto trading/robot provider you choose to go with, we advise that you still observe some tips in making use of a binary EA. Those tips include:
Back-test the EA
Before you start applying the EA or robot, it is important that you go back in time to check how well the binary options auto trading robot has performed in the past. This is known as backtesting. With this, you can see how the trading software faired under different market conditions in the past.
Use a Demo Account
Similar to the above. However, this time you are actually applying the automated software to an actual trading account, without risking.
After subscribing to your binary option auto trading/EA provider of choice, don’t apply the software to your live trading account right away. Use a binary options demo account Ghana first, and sustain this for like a month. You will understand how it works, the strategies upon which it was built, and much more, without exposing yourself to any risk whatsoever.
Binary options auto trading robots have different strategies programmed into them. As such, some perform extraordinarily well under some market conditions and fail terribly under others. You have to patiently see the software through different market conditions by testing it for a considerable amount of time before making any conclusions. Similarly, once you’ve subscribed to one forex EA, stick to it. Traders make use of multiple forex EAs. That is counter-productive and may lead to heavy losses.
While you search for your preferred system, remember: If it sounds too good to be true, it probably is. There are a lot of scams going around. Some systems promise high profits all for a low price. So how do you tell whether a system is legitimate or fake? Here are a few basic tips:
Scrutinize anything you’d have to pay for before you pay or lay down any money for a trading account and always ask questions. If you don’t, you may lose money in the end. Do your research and make sure you know everything about the system in question. And be sure to read the terms and conditions before you commit. Are there any testimonials you can read? Check third-party sites or even financial regulatory sites for reviews. Does the system come with a trial period? A lot of scam sites won’t offer you a trial.
Here we list the upsides that result from trading binary options with automated trading software. What are the benefits that come with the best trading robots?
Trade Multiple Markets
Automated trading systems permit the user to trade multiple accounts or various strategies at one time. This has the potential to spread risk over various instruments while creating a hedge against losing positions. What would be incredibly challenging for a human to accomplish is efficiently executed by a computer in milliseconds. The computer is able to scan for trading opportunities across a range of markets, generate orders and monitor trades. Automated trading is almost always available as on the go solution – binary trading mobile Ghana app.
Helps to Reduce Human Emotional Involvement in Trading
Automated trading systems minimize emotions throughout the trading process. By keeping emotions in check, traders typically have an easier time sticking to the plan. Since trade orders are executed automatically once the trade rules have been met, traders will not be able to hesitate or question the trade. In addition to helping traders who are afraid to “pull the trigger,” automated trading can curb those who are apt to overtrade — buying and selling at every perceived opportunity.
You Can Go Back in time to Test your Strategies
Backtesting applies trading rules to historical market data to determine the viability of the idea. When designing a system for automated trading, all rules need to be absolute, with no room for interpretation. The computer cannot make guesses and it has to be told exactly what to do. Traders can take these precise sets of rules and test them on historical data before risking money in live trading. Careful backtesting allows traders to evaluate and fine-tune a trading idea, and to determine the system’s expectancy – i.e., the average amount a trader can expect to win (or lose) per unit of risk.
They Don’t Use too Much Resources
At first people believed that by installing a binary trading robot or a cryptocurrency trading bot Ghana, they would not be able to use their computers, but they soon discovered that a good robot will not use as many resources as they initially thought. The robot runs in the background and you can use your computer without any problems.
You Can configure trading as you wish
Most robots allow their users to configure the trading system as they wish. Usually they can choose between the Classic, the Martingale and the Fibonacci systems, whichever one they consider works best for them. Each one of these systems works in a different way and they can always count on the fact that the robot will respect their wishes.
Binary.com Ghana offers the facility to design and run an auto trading robot. For long the best broker for advanced traders, Binary.com now offer a range of ‘advanced platforms’ – one of which includes the Binary bot platform. Some notable binary options brokers Ghana include IQ Option Ghana, Olymp Trade Ghana and Deriv.com Ghana, amongst others.
This platform gives traders the ability to put together an automated trading system. As might be expected from this firm, the feature offers more depth than some of their rivals – again appealing to advanced users. The criteria for putting together the algorithm offer a greater choice than elsewhere. The process allows extra layers of complexity to built-in, enabling users to get very specific about their trade ‘triggers’.
Binary Bot follows the Binary.com look and feel, which is fairly unique. The visual ‘fluff’ has been trimmed back, and replaced with more features and usability – typical of the brand.
As technology propels, more means has been opened to make our lives better and more straightforward. Artificial intelligence and computer are beginning to fill various parts of our lives. Robots are capable of performing particular tasks without human impact, for example, cleaning or bomb disarming. By making artificial intelligence decisions, many robots are serving humans in the financial market. For example, binary trading Ghana can be handled by robots. There are many auto trading robots available in the market that is trading on behalf of traders.