One of the hottest things that investors are looking at because of the high returns is the Binary Option Market. There are literally hundreds of these companies active today that allow the average person to trade in Binary Options. Binary options are trades made upon a single (hence binary) decision point – will the value of an asset increase or decrease over a defined time period. An individual chooses the asset, chooses the amount they would like to invest and then chooses the direction they feel the asset will move. Quite simple. However like any asset traded the more you know about fundamentals and events the better the opportunity to turn a profit.
This leads me to the discussion on auto trading systems. To be clear, I am not affiliated in any way with any of the systems reviewed.
Almost all of the systems make large claims about turning small accounts into hundreds of thousands of dollars – or millions as some claim – in a very short time frame. However, having tested several, not all are living up to their claims and in fact result in the erosion of your capital or do not work at all. All of the systems operate on the basis that they are ‘free’ but you need to sign up for a brokerage account through their system (in essence they are then being paid by the brokerage for a new account). It is important to note that the review and results are a reflection of my own experience.
I tested the following systems: 7 Day Millionaire; 70K Method; Christmas Profits; Kraken; and Binary Option Robot. In all cases I funded the accounts and followed the directions for auto trading. The Kraken, Christmas Profits, and 7 Day Millionaire are all based on the same platform. No matter what I did, or which browser I tested I could not get these three to make an automatic trade. I exchanged email with the support at the 7 Day Millionaire but was unsuccessful in making auto trades. Therefore these bots did not live up to the promise of auto trading.
All three of these web portals did offer signals. I decided to test the signals from the Kraken (on an Option.fm trading account) and made nineteen trades. Six of these trades resulted in wins (31.5%). Based on this result, I would not recommend using these bots for trading signals (we will cover trading signals in another article).
The 70K Method application (tied to a Mayfair account) did perform auto-trading functions. However the results were less than ideal. Eleven trades were placed over a two week period and there were ten lost trades and one win. This is far less than the 85-90% win ratio advertised in the marketing materials.
The Binary Option Robot is the most promising of the bots reviewed. It was set up with an account from No1Options. This software made forty four (44) trades over the period of the trial. Twenty one (21) of these trades were winners and one was a tie. It did make the trades by itself and appears to have logic around stop losses built into the software.
Therefore only the Binary Option Robot produced results – and those were less than what had been advertised. However I do like the stop-loss feature and this tool could be a good complement to an active trader and find some wins when you don’t have time to trade.
Stay tuned for the next article in this series as we explore trading signals software.