Binary Option Robot is a free auto-trading tool for binary options that connects to your broker and automatically places trades for you. You have a choice of using the auto trade feature, which places trades automatically when the signals are given, or you can enter trades manually.
The Binary Option Robot system works by using a choice of six different technical indicators including Trend,MACD, RSI, Stochastics, Williams and the CCI.
Once you download the software and login, you can select which indicators you want to use in order to receive the signals. Once this is done, you can choose the currency pair, trading system, expiration time and value of each trade.
What is the Average Win-Rate?
After testing the software out I was quite impressed with the win-rate. Generally speaking, you’ll see a win-rate of 70%, which varies depending on the time frame you’re using. I wouldn’t trust the 83% win-rate claimed on the homepage or the “Latest Trades” screen.
I’d also avoid using the 60s expiry times on the Binary Option Robot as the signals are a lot more prone to the background noise in the markets. For example, I was probably seeing a 30-50% win-rate with 60s option.
However, if you use the 15m, 30m or 60m expiry times then you should see a 65%-70% win-rate. Generally you’ll win 2 trades out of 3. Obviously you’re not going to win all of the time as the software relies solely on technical indicators, which don’t work well in choppy markets or during major market events.
The reason I’m sticking up for this software is even though it doesn’t win all of the time; it only takes a 65%-70% win-rate to start making money with this software.
What Systems are Available?
The great thing about this software is that it allows you to trade 3 different systems for the auto-trader option, as explained below:
Classic System: If you choose this system then it will always trade the same amount regardless of whether you win or lose.
Martingale System: You trade amount will increase after a loss and then reset to original amount after a win (e.g. if you lose $10 in first trade then it will trade $25 in next time).
Fibonacci System: This system increases your trade size after a win and decreases after a loss.
I already admire the transparency and openness of the system, as not many auto traders and signal services are open about the methods and indicators they use to generate the signals. By being able to view and select which indicators to use, you can use this service as part of a wider strategy.
Secondly, the software is incredibly easy and quick to install. The software is built for beginners and shows a useful friendly window next to your broker screen where you can edit the trading inputs. This is in contrast to other software such as BinaryAutoTrader.com where you need to log into the website and then open trades in a different window.
The best thing about Binary Option Robot is that you can configure the trades and systems to suit your strategy. For example, not only can you select which indicators, trade value and expiry time to use but you can also choose between 3 different systems
Finally, the auto-trading software works under a range of market conditions. Once you set it up, you can leave your computer running whilst your away and it will trade on your behalf. There are always plenty of signals and alerts, however be aware that if you use the smaller time frame then you’ll be sacrificing win-rate % for volume of signals.
Disadvantages of the Binary Option Robot
I honestly don’t think there are many disadvantages to using this software. If you’re looking to trade the MACD/RSI/Stochastics/Williams and CCI indicators on your MT4 chart then this robot simplifies the process for you. You can either trade the signals by themselves or combine them with your own strategies such as trading trends or wait for candlestick pattern confirmations.
Of course, the main downside by using the Binary Option Robot is that (like all other auto-traders) it trades purely off technical indicators. This means it won’t take into account things such as choppy markets, candlestick patterns, market reversals and major news releases. In other words, you can’t really expect to earn more than a 70-75% win-rate with this system even with the longer expiry times.
The other disadvantage is that it only works on three brokers (StockPair, TopOption and ZoomTrader for US traders). However, each of these brokers provides a number of features for traders so you’re not missing out on much. DOWNLOAD IT NOW FOR FREE