Options trading automation
It's not a secret to anyone that for quite a long time fully automated trading systems are used on the world markets that consistently earn money for their owners, and annual revenues from their usage reaches millions of dollars. There are many opinions against such approaches to work. However, time passes and automated trading systems owners gain more and more profit not participating in the trading process at all. The use of trading robots is available in binary options trading as well. In fact, the world's marketplaces do not differ from trading terminal of an ordinary trader, the one who trades at home on a personal computer. The only difference is that the private trader usually deals with the sums ranging from 200 USD to 50 000 USD, and the professional market participants - with millions of dollars.
Today the automated binary options trading is available for any trader as, most commonly, the service is offered by brokerage companies or the necessary conditions for automated trading systems implementation are established.
Why is automated trading better than manual trading?
Trading through an automated algorithm is much better than manual trading (of course, if we compare the profitable trading robot). Why? Because the robot for options is not afraid of any emotional turmoil that often ruins a successful trading. Binary robots do not know tiredness and never sleep.
Also, imagine yourself trading the trading system and during its own testing by the strategy tester or based on the quotes history, it shows quite good results. However, in reality, you will never be able to achieve the results that are obtained when testing. Because during the test you took all transactions, despite the time of day and days per week, into account. In reality, it turns out that at a time when a system trader must take a profit, he is absent. At the same time binary robots fulfill the trading signals with no exception. At the same time their speed of reaction is many times greater than that of a trader. Robots have no intuition, which constantly pushes the trader to losses. That's why more and more traders around the world prefer automated trading.
Trading automation types
Currently trading opportunities of every trader from the viewpoint of automatic options trading can be divided into:
- Fully automatic binary options. Service provided by the brokerage firms via web terminals.
- Proprietary trading robots. Trading Robots for options custom built for traders and applied in MT4 trading terminals.
- Semi-automatic trading systems - dubbing trades on the web-terminals and on stand-alone MT4 terminals.
- Trading signals - signals for buying and selling options, provided by the brokerage companies and other providers of exchange services.
Automated binary options from brokerage companies
Today, some brokerage companies in order to facilitate client binary options trading, to expand its range of services offers trading automation service to all its registered traders. Today the most popular automated systems are:
U-bot of the Utrader company – this is a binary options trading robot, the work of which is fully automated. The algorithm of binary robot operation is as follows. Utrader company maintains statistics on trading on its website. Thus, traders whose deals are most profitable for a long period of time are allocated to a separate group. In fact, these people are the "brain" of the robot for options trading. Further, the U-bot system sums all transactions entered by the specified "think tank" and summarizes and redistributes them to the trading terminals of traders who ordered the service of automated trading for risk diversification.
Percentage of profitability for the given options robot is large enough. However, if the installed to the client terminal automated trading signal resulted in a loss then the binary options trading U-bot robot algorithm pushes an overall trading result to profit.
AlgoBit from OptionBit conpany – a binary options trading robot, which operates in two modes:
- fully automatic mode, the operating principle of which is similar to the previous binary robot;
- semi-automatic mode, in which a trader confirms whether to execute or not a trade on trading signal, supplied by the system.
AutoBinaryEA - trading robot for binary options from the Cedar Finance Company. This options robot has a large number of technical indicators, which are constantly analyzing the market of popular financial assets. Thus, AutoBinaryEA delivers signals of technical indicators to the trading platform, and trader decides whether to use them or not. That is, the work of the named options robot is carried out in two modes:
- automatic mode, in which the robot makes binary options deals on the basis of received indicator signals;
- semi-automatic mode in which trader confirms positions opening.
By the way, signals incoming to trading platforms undergo a preliminary assessment by the company's specialists, who decide whether to work with the issued signal or not.
Trading robots for МТ4
Meta Trader 4 trading terminal provides a unique opportunity to trade with your own automated trading advisors for binary options. That is, traders can purchase or download a robot for binary options on various online resources and install it to their MT4 trading platform for its independent trading. In addition, if you already possess a profitable trading system with which you trade binary options manually, you can order the trading advisor building form the relevant programmers and continue trading on your system in automatic mode.
As a rule, trading advisors for MT4 work on different algorithms:
- on the signals of indicator trading systems;
- on mathematical formulas.
In addition, the Instaforex and GrandCapital companies offering these platforms for binary options trading provide an opportunity of binary options robots operation of replicating other successful traders’ trades.
At the same time, there is a given platform developer, MetaQuotes company, service, which provides paid services of replicating binary options traders’ trades not only within a single company framework. With this service, traders have access to trades duplication of successful market players from all over the globe.
All of these automatic systems include the ability to manually confirm the trade. That is, these systems support a semi-automatic type of trading as well.
Trader who uses automated trading via MT4 in his trading, as opposed to auto-trading via the web platform, does not depend on the brokerage companies and their binary options robots, reviews of which can be controversial. In this case, the automatic trading via MT4 is done with the trading robot, which is set by the trader himself.
Semi-automatic trading systems
As stated above, such semi-automated systems are offered by Cedar Finance Company in the AutoBinaryEA program and OptionBit Company in AlgoBit program, and are also included in automated trading function of MT4 trading platform.
In addition, as a kind of semi-automated trading, the LBinary Company’s “following the spot” method can be mentioned, in which traders can monitor and copy trades of the most successful traders in the above mentioned brokerage company. To do this, the web platform has a section in which it is possible to get acquainted with the other binary market players’ statistics and connect your terminal to their platform.
This service is not less prevalent in the market of binary options trading. As part of this service, some brokerage companies and other private providers are distributing trading orders to open positions on different assets in different options.
Utrader company service can be given as an example.
This service may be subscribed to, if trading deposit is not less than 500USD. Having subscribed trading signals for 7 financial assets with different terms of expiration are sent to the personal Trader's Room and e-mail box by Utrader Company 2 times a day, which allows to use them in different trading methods: short, medium and long-term trading. At the same time, according to the Company, the rate of profitable signals is 71%.
As you can see, traders of binary options possess a fairly wide array of trading opportunities. The remaining is to correctly select and apply them.