Auto-trading robots are software (based on algorithms) that allow traders to automate their trading according to certain preferences. They can be combined with a signal service or used independently.
One area where auto-trading robots are quite common is binary options trading. If you are a novice binary options trader, we recommend that you do your homework first and learn the basics of binary options trading instead of leaving these important financial decisions in the hands of an algorithm.
Once you know more about binary options and is familiar with manual trading, you will be more suited to critically evaluate the available auto-trading robots and also decide if you want to combine auto-trading with a signal service or not.
There are a lot of poor-quality robots available out there, as well as poor-quality signal services. Some are outright scams. Be careful and vigilant, and don’t get sucked in by overly optimistic promises and rags-to-riches fantasies.
One reason why auto-trading robots are popular is convenience. You can set the robot to execute your trades according to certain parameters and then leave it to its own devises. You don’t have to anxiously check your tablet every five minutes, fearing that you might be missing a great opportunity.
The robot doesn’t need any sleep and can allow you to be active in binary options trading 24/7. You will no longer be limited to trading during certain hours of the day only and having to limit your activity due to your time zone, work hours, sleeping patterns, family obligations, etc.
When an opportunity that meets your criteria arises, the robot will notice and execute a trade – even if it happens to be in the middle of the night in your time zone and the opportunity arose as a result of unusual activity at opening of the Tokyo Stock Exchange.
You can decide exactly how much freedom to give your robot, e.g. by imposing a limit how large each individual purchase can be and how much money that can be invested in a 24 hour period. You can also adjust what type of binary options the robot can by, which underlying assets that are permitted and which signals to listen to.
Whether or not a trade is placed will depend on if it meets all criteria or not. The more stringent the criteria, the less trades you can expect the robot make, since there will be fewer traders available that fulfil all your requirements.
Robots don’t get emotional and they wont second guess your trading strategy. You program the robot and it will carry out your orders without hesitation. This can be great advantage and can help you from losing money due to you becoming overly cautious or overly eager when trading. You decide on the parameters when you are calm and level-headed. In the heat of the moment, these parameters are utilized by your robot.
A robot doesn’t get overwhelmed by heavy trading or swept along by the emotions of the crowd. Your robot can diligently continue to execute your orders even in situations where the human traders are working themselves into a frenzy. Huge amounts of data is processed automatically and there is no need for the robot to take nap, have coffee or freak out.
Some auto-trading robots are designed to work with a specific binary options trading platform, and sometimes also with a specific signal provider. Other auto-trading robots will give you more freedom to chose these things yourself.
If a broker is making money on each individual trade, that broker is likely to promote robots and signal services that encourage a massive turnover trading style.