Trading with automated binary options software
If you want to make any kind of a living as a binary options trader (and it’s possible to make a very good one) then you’re going to need to understand the basic concepts before you do anything else. Binary options trading is very popular right now, in part due to the fact that it appears to be reasonably simple. With this type of trading you’re usually making one of two choices (as the name suggests) between whether an asset will rise or fall in value, and you’re placing a wager on the outcome. But even though it sounds easy, the underlying assets are quite capable of doing things that you don’t expect, and as a trader, it can become as easy to be led astray by your own emotions when things are going well for you as when they’re going badly. Either instance is to be avoided, because your trading decisions should never hinge on how you feel. If you want any kind of longevity as a trader then all your choices need to be made on the basis of logic and research.
Speaking of logic, artificial intelligence is assisting us more and more in every aspect of our daily lives, so, it was only a matter of time before robots were helping us to trade as well. You might hear it called algorithmic trading or system trading, but it’s the same thing. Software can be used to help the trader, placing trades based on a set of rules that you set for it. The algorithm becomes a silent partner which can do your bidding at any time of the day or night.
It’s a very appealing idea. You select a simple strategy like moving averages, or even something more complicated, and the software is linked to your binary trading account so it can do everything for you, always sticking to the parameters that you’ve set, jumping on advantageous positions when it sees them, even when you’re asleep.
You can sometimes choose from a list of indicators which will guide the binary options software, but even though automation can help you to trade, don’t assume that you can just set it and forget it. You need to understand the principles of binary options trading before you trust your automated binary options software with any real-world deals. It’s not much use being able to specify strategies if you haven’t got a clue about what they actually are.
Getting your head around different strategies is crucial to successful trading. The more you understand about binary trading concepts, the better you will be able to wield your software as an effective tool.
Although this may all sound complex, you can learn the key concepts fairly easily once you get a little practice under your belt. And don’t worry about the software being reckless while you’re asleep either. It’s easy to set limits on the number and value of your trades, so it will put the brakes on to reduce the impact on your account balance if there are any negative trades.
If you’ve ever been to a casino, then you may have seen someone at the roulette wheel who is convince that their ‘luck is in’. They may have won a couple of spins, and while they’re buoyed up by the euphoria of success, they continue to place bets. At this point they trust their emotions instead of reason, so it’s not long before they lose it all. Logic would dictate that they should walk away while they’re ahead, because the chances of them repeating their success and digging themselves out of their hole are so slim, but they persist with their feeling that their luck is just one spin away, and it ruins them. This is one of the reasons why automated binary options software has become so popular amongst traders. Once you have set it up with your trading rules it sticks to them. A computer is never swayed by emotion, only by data. It responds to concrete happenings in set ways and it will never deviate from its predefined responses. A losing streak will cause the software to stop trading, when a human may have clung on in despair, in the hope of trading their way out of a big loss.
Of course, your automated binary options software is only going to be as good as the information that you give it. If your strategy is bad and it follows it to the letter, then your results will be bad too. It can’t make predictions for you, and it can’t patch up a bad strategy.
But it can help you to test any strategy ideas that you may have. Testing lets you find out whether your strategy is a good one and automated binary options software executes it to the letter.
It can react to market changes straight away and handle trades with short timescales with pristine efficiency. It’s all too easy to miss things that could put you in a losing position when you’re completing multiple trades manually, but the software never misses a detail and can juggle tasks easily.
Automated binary options software also lets you test various strategies across multiple accounts. You can use these accounts to hedge your trades while you test new ideas; something that you’d find tremendously difficult, if not impossible to do all by yourself.
Let’s also not forget to mention the number one obvious benefit of automated binary options software: it can run your strategies while you’re busy doing other things, a blessing for those of us with busy lives.
Even the best software can run into problems from time to time, so it’s important to make sure that you have contingency measures in place for when they show up.
Ask yourself what you’d do if your connection went down or your PC gave you the fabled blue screen of death, platform compatibility issues tripped it up or anything else that might stop the trade from going through appeared. To keep these risks to a minimum you should consider using a number of accounts; it’s one way of spreading the risk, because trouble with one of them will only affect that one and none of the others. You should also avoid leaving your software alone to trade for too long, so that if the machine does go down or you lose your connection, hours or days won’t have passed in which you were assuming that everything was okay.
It’s also good to monitor your software regularly to check that your strategy transfers from your notebook to the marketplace as well as you had hoped.
It’s worth mentioning that automated binary options software is less problematic when you run it on its own server rather than on a lone computer. If you use a remote hosted server then you are much better protected from power outages and software mishaps thanks to the layers of backup that providers can offer.
Such a server may also allow you to run your automated binary software with greater speed and accuracy over a faster connection.
For all its benefits, you should think of automated binary trading software as no more than an additional tool to go with manual trading. Both approaches can work side by side to boost your profits and reduce your levels of risk, so long as you are diligent with monitoring.
Automated binary options software was created to work on your behalf. That said, what it actually does will be defined by you. Asset types, trading methods and trade sizes are elements that you have to select. It’s simple to set the parameters, and it can be accomplished in a matter of minutes.
As soon as you’ve set it up and told it to begin, your software will get to work until it’s completed the trades that you instructed it to. A decent automated binary options software solution should be able to offer more wins than losses, returning mostly profits on any given trading day. But there are a couple of reasons why it’s crucial to know the limits of this software before you start trading with it:
The best software that there is won’t be able to succeed on 100% of trades, so you may still end up with an overall loss, either because you had more failed trades than successful ones or because the value of your losses was greater than those of your profits.
The software is only as good as the information that you give it, and it’s still very much placing your funds in the hands of fate when it starts working for you. It’s up to you to make sure that you work alongside it, looking for the opportunities for profit that it misses.