Free binary option robots

Free binary option robots

Free binary option robots are a gift to traders. To find a good free robot, however, you need to know a few things. Not all free robots offer a valid service, and not all free robots are easy to handle.

In this article, you will learn:

  • Which types of free binary option robots exist,
  • How to make sense of the advantages and disadvantages of each type, and
  • How to find the perfect free binary option robot for you.

With this knowledge, you will be able to start using a good robot for free.

Which types of free binary option robots exist?

There are two big types of binary option robots:

  1. Robots that run on your computer, and
  2. Robots that run on a server.

Let’s look at the advantages and disadvantages of each type of robot.

Robots that run on your computer

Some robots are available for download and then run from your computer. Most of these robots are require a separate program and often difficult tools to connect to your broker.

One popular setup, for example, is to use Meta Trader, a well-known technical analysis software that can execute automated programs. While Meta Trader enables you to download one of the thousands of robot that are available for it for free, you need to use a connection provider that connects your Meta Trader to your broker.

These connection providers cost a monthly subscription fee, often around $100 per month, and lose about half of your signals. These trades will not be executed, even though your Meta Trader ordered them.

There are more problems:

  • Your system can only work while your computer is running and connected to the internet. Limiting most robots to only a few hours of trading every day, this limitation can greatly reduce your winning percentage.
  • It is difficult to find trustworthy robots. Free downloads are offered to internet forums and specialized sites, where everyone can upload the robot they created. There is no guarantee that these robots work, and with everyone claiming perfect results it is next to impossible to distinguish legitimate robots from the work of clueless amateurs.

As a result of these limitations, trading with a robot on your computer is complicated, and results are uncertain. Luckily, there is a better alternative available.

Robots that run on a server

Compared to robots that run on your computer, server-based robots have a number of advantages. These advantages are:

  • You can buy into proven systems: Instead of downloading a robot from some obscure internet forum, server-based robots allow you to buy into proven systems. All server-based robots publish a history of their past trades. To know whether a robot works, you only need to take a look at these past trades, and you will immediately see the profit you can make with this robot.
  • Your robot will trade 24/7: Free from the need to run on your computer, server-based robots are connected to the internet permanently. They never miss a trading opportunity, they can place more trades, and they can make you more money in the same time.
  • Less maintenance: With a server-based, you do not have to worry about the technical site of the business. Your provider will make sure that the server and the robot are operating properly. All you need to do is manage your investment setting – how much do you want to invest, which assets do you want to invest in, and which strategy do you want to use. Five minutes a week are enough to make these adjustments.

As these advantages show, server-based robots are the superior trading style. They offer a much simpler and more profitable trading style.

To get a server-based robot, we recommend BinaryOptionRobot. BinaryOptionRobot is the only free server-based robot that offers great results. To get started with BinaryOptionRobot, follow our link and sign up for their service.

 

Why US Traders Should Choose NADEX

nadex

NADEX or the North American Derivatives Exchange, is one of a handful of exchanges licensed for binary option trading in the US. I purposely didn’t call NADEX a broker, because operators called “brokers” in the EU/CySEC sense, cannot obtain a license in the US.

So why should US traders choose NADEX?

On one hand, there’s not a large selection of exchanges they can choose from. There’s NADEX, there’s Cantor Exchange (CX) and there’s the Chicago Board Options Exchange, and that’s about it. Of those, only the first two are really dedicated to online binary option trading, and of them, for the time being, NADEX is the best pick. Why is that? There are several factors pointing in NADEX’s direction here: Availability, Regulation and Liquidity.

nadex-trade
Click here for more information about Nadex!

As said above, NADEX are the most straightforward choice for US-based online binary option traders, because they’re there. They are fully regulated by US financial authorities and they essentially carry the flag of binary options in the US. For someone looking for a legal and safe binary option destination in the US, NADEX is the simplest and straightest answer.

Regulation is another major factor working in NADEX’s favor. US regulation isn’t just strict in the general sense, it only allows a business model it deems entirely fair. In this respect, there are indeed major differences in regards to the business models used by US and EU-regulated brokers. Brokers licensed by Cyprus’ CySEC and other European financial authorities, work on a business model which allows them to be the sole market makers. What this means is that such operators will be solely responsible with the setting of the prices and thus, they will in essence trade against their own clients. If you sense a major conflict of interest there, you’re right. It is in fact this conflict of interest which disqualifies CySEC brokers from US regulation.

In the US, only the exchange-based business model is allowed, of which CX is the perfect representative. At CX, every market participant is a market maker as well, meaning that traders themselves set the prices. This way, the above described fundamental conflict of interest is eliminated from the equation. Of course, this model gives birth to a slew of problems, and lack of initial liquidity is one of them.

In order to understand why NADEX is superior to CX, we need to actually take a look at a comparison of the two. NADEX are focused on retail traders and investors. Their whole trading platform and the whole system is set up to reflect this focus. CX on the other hand, are apparently more interested in drawing technology providers and white-label solution creators as well as buyers to their platform, thus offering CySEC brokers a sort of path into the US market as well. This approach is certainly not without its merits, though the problem with it is that coupled with a pure exchange-based business model, it isn’t exactly a boon to liquidity. This is the reason why CX only have a few tradable assets. They have few market makers and thus no prices on a bunch of assets, so those cannot draw in other traders who would also be price-setters. It’s a sort of chicken and egg conundrum.

NADEX on the other hand, have opted for a sort of hybrid approach. They have two market makers and thus – although they compromise the integrity of the pure exchange model, thus potentially drawing the ire of the regulators – they have plenty of liquidity and tradable assets.

A US-based retail trader, who has a system for the trading of a given asset, will quickly turn away from an exchange which does not support the said asset, especially if there is a viable alternative at NADEX.

Last, but certainly not least, we have the advantages of regulation.

NADEX, like all US exchanges, is heavily regulated and it is therefore one of the safest destinations for the trading of binary options anywhere. While its appeal is mostly focused on US-based traders, it isn’t lost on Europeans either. In fact, everyone can trade at NADEX, under the protective umbrella of strict US regulation.

In the case of CySEC brokers, the possibility of fraud, or just unethical behavior within the rules set by the regulator, is always there. Due to the business model, CySEC brokers are directly harmed by traders who are too successful. Indeed, the theoretical possibility that a very successful trader might drive the broker right into bankruptcy, exists as well. With US-based exchanges like NADEX, there is no such threat. Some traders make money off other traders who lose money. If it weren’t for the commissions and spreads charged by the exchanges, it would all amount to a zero-sum game. In a word: the exchange simply doesn’t care who wins and who loses and how much money is involved in this “game”.

Some – often unregulated – offshore brokers offer binary options to US traders as well. These are all highly dubious operations, so picking NADEX over them is a no-brainer indeed.

The Ultimate Guide to Binary Robots

guide to binary robots

Binary option trading robots are seemingly everywhere these days. Binary option auto trading scams are popping up at the rate of several every week, despite the fact that everyone involved in binary option trading one way or another, has long been wise to their antics. Learn more in my guide to binary robots.

A trading robot is a program which is capable of generating its own trading signals and acting on these same signals, according to a capital management plan which is either set automatically, or input manually by the user of the robot.

Your guide to binary robots:

Given how popular they are with scammers, who will take every opportunity to blow their true capabilities out of proportion, it’s safe to say that binary option robots have been overhyped lately. From the tracking of weather satellites, to using AI and various intricate trading algorithms, not to mention bare metal servers, everything has been ascribed to binary trading bots as the concept on which they’re based. Of course, none of these far-fetched tales are true. Every trading robot out there is based on a more or less intricate combination of technical indicators, and that is the source of their limitations too.

Binary option robots are indeed quite limited when it comes to long-term success and consistency, and that can be attributed to the fact that they’re unable to perform fundamental analysis. Technical analysis, with its charts and chart patterns, coupled with various mathematical artifices, is extremely easy to automate. Fundamental analysis on the other hand, does not lend itself well to automation. Not even systems endowed with rudimentary AI can handle proper fundamental analysis, and that explains why experienced robot users’ best answer to fundamentals-induced volatility is to just unplug the whole thing.

What types of trading robots will you find out there?

Based on how they are “sold”, there are two basic types of binary option robots. There are scam robots and there are legitimate ones. When it comes to intricacy, the sky is the limit really. One can combine as many technical indicators as he pleases and he can place filter on top of filter to refine the results. The money management module can be twisted and turned into all sorts of shapes and sizes too.

How do you recognize a binary option auto trading scam?

The clues/signs are quite numerous and obvious indeed. Scam auto-traders are advertised everywhere these days, and most of them are built on the same blueprint. The scammers set up a 2-3 page site on a recently acquired domain and they upload an elaborate promotional video to YouTube or to another video-hosting site. Even the scripts of these videos resemble one another. They’re all about fabulous promises of thousands of dollars per day without any work required on the part of the trader and they usually say very little about how their software is supposed to secure such results. If they do talk about the mechanics behind their traders, they usually concoct some sort of far-fetched story in which they hype up some kind of rather mundane technology, hoping those less knowledgeable will buy into it. Another common denominator of such videos is the fact that scammers make a big deal about offering their software for free. It always turns out though that victims have to make a $250 deposit with one of their “trusted” brokers to get things going. Needless to say, victims then never see a single cent of their money afterwards.

What happens is that the scammers give traders access to a low-grade robot, which uses some technical analysis to generate signals and to trade. They then pick up their commission from the broker they’re partnered with and they stop caring. Users then have their deposits traded away by the software. They might even get subsequent phone calls from the broker, through which they’re encouraged to make additional deposits.

Legitimate auto traders never hype anything. They just state the facts about their products, including their limitations.

One of the most interesting platforms traders can use to create their own trading robots, is hosted by one of the most popular CySEC brokers, IQoption. Through this platform, traders can use a wizard to create robots, using a number or ready-made modules. Sharing these robots is also possible through the same platform. The creation of more advanced robots requires advanced technical analysis knowledge. Everything is free at IQoption’s Robots platform. What this means is that traders without any kind skills and inclination towards technical analysis, can simply log in and use the robots created by other traders. What’s more, apparently there are robot trading competitions taking place at IQoption too, which allow traders to put their creations to the test.

Trade with IQ Option now
Start trading today with a small deposit of only $10 with IQ Option!

The bottom line is that trading robots are always limited by the nature of the technical indicators they use. If you hear stories about an auto trader capable of doing fundamental analysis, you’re probably looking at a scam. Be realistic in your expectations. This way, you may actually find the robot trading game an enjoyable one.

24Option

24Option Review

24Option is one of the mainstays of the binary options industry. The owner of a CySEC license, it stands out from among the multitude of similarly regulated brokers, by virtue of age as well as several unique qualities and features. It hosts major trading competitions on a monthly basis, making it possible for its traders to pocket thousands of extra dollars. Learn more in our 24Option review.

24Option review – all about the broker

The operator also offers great bonuses on decent terms. The maximum returns are in the neighborhood of 89% and the site provides its traders with free signals – a truly valuable asset for beginners. Among the various option types that it supports, 24Option features 30 second options too. Another peculiarity about the operation is that while its minimums on investments are as low as $24, the maximums go all the way to $50,000.

 

24option-trade
Start your trading career today with 24option.com!

 

Platform

Unlike the majority of their peers, who use SpotOption and Tradologic platforms, 24Option have chosen Tech Financials. What this means is that traders are met with a rather unusual interface, which delivers all the perks and functionality that it has to though. The broker offers a secondary site too, which is optimized for tablets, smartphones and other mobile devices. The 24Option platform currently supports four different option-types. Besides the above mentioned short-term options, they also have classic Put/Call binaries, as well as One Touch and Boundary trades.

Account types

To allow their users to have their trading experience customized based on their financial means, their goals and their level of expertise, 24Option have created a number of account-types meant to cater for as diverse a cross-section of the trading community as possible.

The Standard Account is a very reasonable setup for beginners and even for advanced traders. It slaps no restrictions on the tradable asset selection, its maximum payout rates can be as high as 88% and it provides 24-hour customer support.

Those looking for a little bigger bang for their buck, may opt for the Gold Account. This setup allows traders to earn an extra 2% on their investments, while enabling them to withdraw free of charge/commission, once a month.

The Platinum account offers unlimited free withdrawals and 4% more on trades, while the Diamond Account takes that number to 6% and throws in a Free Demo Account. To access the Demo account, traders are required to make a $250 deposit though.

Asset selection

24Option’s asset selection is superb. Traders have some 30 currency pairs they can choose from, in addition to 11 commodities, 19 indices and 45 stocks. Such a vast asset-selection creates many trading opportunities and more ways to put to use the signals offered by the broker.

Reputation

Having been around since 2010, 24Option has often been the target of fraud claims from a number of disappointed traders. While it’s indeed quite certain that there are traders who lost money at the site, it is also certain that their losses did not result from foul play of any type on the part of the broker. Some scam reports are also disseminated by 24Option’s competitors. None of these check out though, and the overwhelming community feedback in regards to the operation is positive. In fact, it is safe to say that 24Option has grown into a the preferred trading destination of many a trader since 2010. Their CySEC license compels them to conduct their operation in full accordance with the EU’s MiFID directives.

Deposits and withdrawals

24Option support several languages and they accept deposits/honor withdrawals in a number of currencies as well. The minimum deposit at the site is $250, but EUR and GBP are accepted as well, in the same amount. Another option is to make a 25,000 JPY deposit. The deposit/withdrawal interface is one of the simplest and most straightforward in the business.

The accepted deposit methods cover wire transfers, credit cards as well as an impressive number of eWallets, like Neteller, Qiwi, Skrill and Giropay.

24option-trade
Start your trading career today with 24option.com!

 

Customer support

Customer support at the site is available in 13 languages and they’re apparently working on expanding that further. The truth is though that live chat support is mostly in English. Response times on emails are fast, and – as said above – even the most basic customers are entitled to 24 hour assistance. Besides email and live chat, 24Option also support a number of toll-free, regional phone numbers for those all-important questions that bear no delay.

Conclusion

Everything tossed into the middle, it’s easy to see why 24Option is one of the most popular binary option brokers out there. Their market coverage is unparalleled, their payout rates are very attractive and their platform has a peculiar type of exclusive appeal to it. Add their monthly trading competitions into that mix, and you have a sure winner!

 

 

 

Binary options demo broker

Binary options demo broker

You want to become a binary options master? Then you need to go through the same apprenticeship that all great master went through. What Leonardo da Vinci and Charles Darwin did with their early experiences, you can do with a binary options demo broker.

 

Binary options demo broker: Become a binary options master

In his book Mastery, Robert Greene analyzes the lives of great masters. Greene is trying to find a common pattern that helped these masters achieve greatness in their field, hoping to be able to extend this pattern and showing us all a path that can lead us to mastery.

For this purpose, Greene analyzes the lives of Leonardo da Vinci, Charles Darwin, and many more masters – and he finds a common pattern. In what Greene calls an apprenticeship, every great master first learned the basics of his field from someone else.

Leonardo da Vinci, for example, did his apprenticeship with the artist Verrocchio. Demanding his apprentices to develop a deep knowledge of human anatomy, the apprenticeship with Verrocchio was crucial to da Vinci’s later work in drawing and engineering.

Similarly, Charles Darwin used his voyage on the HMS Beagle to make the discoveries that later led him to create his theory of evolution. Taking him to places such as the Galapagos Islands, places that he would have never seen without the Beagle, Darwin’s apprenticeship was crucial to providing him with the variety of experiences that later helped him draw conclusions about how different species developed.

As an aspiring binary options trader, you too have to go through an apprenticeship to become a master. In contrast to Darwin and da Vinci, however, you do not have to hope for lucky circumstances that provide you with great circumstances – you can make your own luck by getting a binary options demo account.

A binary options demo account works exactly like a real trading account, but it allows you to trade with play money. This set-up allows you to create your own apprenticeship. Instead of having to wait for someone to introduce you to the secrets of binary options, you can go out there and make your own experiences.

With the huge amount of learning resources that are available for free on the web and with the education centers that most binary options brokers offer, you can easily find the knowledge you need to complete your apprenticeship.

 

Which binary options demo broker should I get?

In the search for the best demo accounts, we have tested all brokers and created a comprehensive list for you. You can confidently choose any broker from our list. They all offer a completely free demo account without hidden fees and without hidden commitments.

There is, however, one major difference between the demo accounts: some brokers offer their demo accounts as a feature of their regular demo accounts and some brokers offer their demo accounts as stand-alone accounts.

This difference has far-reaching consequences:

  • A stand-alone demo account provides you with an easy sign-up process. Enter you email, choose a password, and you are good to go. To get a demo account that is a feature of a real account, you first have to get a real account, which involves depositing money with the broker, mostly $250. While you can withdraw this money once you are done with your demo account, thereby allowing you to use the account for free, it is nonetheless an extra step you have to anticipate.
  • A demo account that is a feature of a regular account allows you to easily manage and reset your demo. If you have spent all your play money, for example, you can simply write an email to your broker’s customer support and they can reset your account.
  • Because of these two differences, stand-alone demo accounts and feature demo accounts target a very different audience:
  • Feature demo accounts are ideal for risky traders that want to try many strategies, always risking failure and, therefore, needing an easily resettable demo account.
  • Stand-alone demo accounts are ideal for risk-averse traders who have less need to reset their demo accounts but are reluctant to deposit money with a broker they have not yet tested.

If you want a stand-alone demo account, we recommend you sign up with IQ Option, one of the very few brokers that offers a stand-alone demo. If you want a feature demo account, you can choose any of the other brokers on our list. If you want the best broker, we recommend you use Banc De Binary, which offers a demo with a whopping $50,000 in play money.

Trade with IQ Option now
Start trading today with a small deposit of only $10 with IQ Option!

 

What comes after the apprenticeship?

Once you have completed the apprenticeship, you can start to trade successfully. Nonetheless, you should not expect to become an instant master. Greene outlined three phases to mastery:

  1. Apprenticeship.
  2. Create-active phase.
  3. Mastery.

Your demo account can get you to creative-active phase. In this phase, you will already be able to make money with binary options, but you will not yet have gained the intuitive command great masters have. You are, however, on the right path. Keep at it and keep using your newly learned skills, and you will eventually become a master, too – thanks to the path your binary options demo account has led you on for free.

 

IQ Option Withdrawal

IQ Option Withdrawal

Do you want a broker that offers easy and secure withdrawal options? Then you should give the IQ Option withdrawal process a try. Learn more now!

General risk warning
The financial services provided by this website carry a high level of risk and can result in the loss of all of your funds. You should never invest money that you cannot afford to lose.

IMPORTANT INFORMATION!  IQ OPTION DOES NO LONGER OFFER ANY KIND OF BONUS. IQ Option has decided not to offer bonuses anymore as a consequence of some traders having suffered further financial loss caused by the attempts to fulfil the required trading volume, which applies to each bonus. Thus IQ Option do not provide deposit bonuses anymore to prevent this from happening.

How to make an IQ Option withdrawal

When it comes to withdrawals, the good binary options separate themselves from the bad. Since withdrawals are the last thing on the mind of a new broker, some brokers apply insane fees or make your life difficult in some other way. Luckily, the IQ Option withdrawal process proofs itself to be one of the best in the business.

To make an IQ Option withdrawal, you have two basic options:

  1. Credit card / debit card withdrawal
  2. Wire transfer

Since both withdrawal options’ features are fundamentally different, let us take a closer look at each option.

 

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Start trading today with a small deposit of only $10 with IQ Option!

 

All IQ Option withdrawals will be processed within 3 business days. Depending on your withdrawal method, you have to add the methods withdrawal time to calculate your overall withdrawal time.

 

Credit card / debit card withdrawal

Credit card or debit card withdrawals are the most popular withdrawal method. They are free, quick, and easy, and they are the natural payment method for many traders who use credit cards to pay and receive money every day.

Deposits via credit card will take 3 days to process by IQ Option and two days to process by your credit card provider. Overall, a processing time of 5 business days is the quickest you can get with binary options.

Wire transfer withdrawals

Compared to credit card withdrawals, wire transfer withdrawals have a number of disadvantages that make them the less perfect withdrawal method:

1) Wire transfer withdrawals take longer than credit card withdrawals. While wire transfers will also be processed within 3 business days by IQ Option, they take much longer to reach your bank account than withdrawals by credit card. Instead of an overall processing time of 5 days, wire transfers can take up to 10 business days, depending on the customs of your country and your bank.

2) Wire transfers are not free: There is a fee by IQ Option on every wire transfer withdrawal that you make. Since you will be making a lot of withdrawals over the course of your trading career, this is the main reason why you should try to stay away from wire transfer withdrawals.

With this lopsided list of features, you might ask yourself why some people use wire transfer withdrawals at all. The answer to this lies in an anti-money-laundering law: You are only allowed to withdraw as much money with a credit card as you deposited with it. Since some people deposit money by wire transfer, they also have to withdraw by wire transfer.

Perfect Binary Options Strategy?

Perfect Binary Options Strategy?

Your Binary Options strategy determines whether you will win or lose money as a trader. Many traders, therefore, are constantly looking for a better strategy to increase their profits. This begs the questions whether there is such a thing as a perfect Binary Options strategy, and, if so, how to find it.

 

What perfect Binary Options Strategy can you apply?

There is a wide array of Binary Options Strategies. Some are based on trading signals, some on gambling theories, and some on reading the price chart. Based on this very fundamental difference and further differences in the detailed structure of these strategies, Binary Options strategies vary widely in risk and potential return.

There are strategies that will create relatively safe predictions. If you apply these strategies perfectly, you will win 75% of your trades, but, because of the safe predictions, will only get 70% of your invested money as profit from your broker. Other, more risky strategies will create a winning percentage of 90%, but will only win you 60% of your trades, if you apply them perfectly.

 

Which kind of Binary Options strategy is right for you?

Is there such a thing as the perfect binary options strategy? In real life binary trading, the winning percentage of each strategy will be relatively constant. The percentage of successful trades, however, will vary greatly, depending on which trader applies a certain strategy.

If you like to be right, you should choose a Binary Options strategy that will guarantee you a high winning percentage, even if the return per trade is a not as much as with a more risky strategy. Otherwise, a few losing trades in a row will likely cause you to stray from your strategy, and fall back into the habits of traders without a strategy. Then you will lose money, regardless of how great your strategy is.

On the other hand, if you can live with winning only slightly more than half of your trades, and if the prospect of many losing trades in a row does not scare you or make you abandon your strategy, a more risky Binary Options strategy might be better suited for you. A safe strategy would likely bore you and make you place a few riskier trades on the side. This, again, will cause you to lose money in the long run.

 

A Binary Options strategy must suit your character

There is no such thing as a perfect strategy for every trader. There is only a best strategy for each individual trader. You, therefore, should not listen to other traders that want to sell you their strategies as the perfect solution. Neither should you simply copy what someone else is doing or choose a strategy because of the money it mathematically can generate if you apply it perfectly.

The success of a strategy is determined by your ability to follow it as close to 100% of the time as possible. Choosing a strategy that suits you, your tolerance for taking risks, and your tolerance for being wrong is far more important than choosing a strategy with high potential return that you cannot apply. Chose a strategy you feel comfortable with and that will generate a profit, and you will be fine.

Especially when you are new to Binary Options it may be a smart idea to try several strategies with a demo account before you use them with real money. This way, you can eliminate strategies that are not working for you without losing real money, and you can learn about your own preferences, which are often very different from what we expect them to be.

If you are planning on doing this, make sure your Binary Options broker offers a demo account before opening an account.

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Moving Average Crossovers

Moving Average CrossoversTrading moving average crossovers is an effective trend-following technique used by many successful traders. To master this technique for your trading, however, there are a number of things you need to know.

Moving average crossovers in trading

A moving average calculates the average price of the last periods. The moving average repeats the process for each period in your chart, always using the last periods from the respective period’s position. For each period, the result is drawn into your chart, thereby creating a line. The position of this line in relation to the current market price can generate trading signals.

By defining how many periods you use to calculate your moving average you can vary the nature of your moving average crossovers. A moving average based on only a few periods is agile and stay close to the current market price. The more periods you use to calculate the moving average, the slower the moving average will be to react to price movements and the further the moving average will be from the current market price.

 

Using the crossover to generate signals

Most of the time, the moving average and the market will move in the same direction. In times of changing market direction, however, the moving average will be slower to react. Depending on how many periods you use to calculate the moving average, the moving average’s delayed reaction will cause the market to cross the moving average sooner or later.

This crossover is a trading signal.

When the market crosses the moving average upwards, it creates a buying signal. When the market crosses the moving average upwards it creates a long signal. When the market crosses the moving average downwards it creates a short signal.

When a trend changes direction, these signals create very good investment opportunities and generate a high percentage of winning trades if you use High / Low options. At first glance, this strategy seems easy and successful. There are, however, some problems.

In times of sideways market movements the market can cross the line of the moving average a number of times and create invalid signals. Also, once the market has crossed the moving average, it does not necessarily remain on one side, even if the trend remains intact. Retracements and market fluctuations can cause the market to cross the moving average again and create short lived false signal.

Eliminating false signals

If you trade all of these signals, your winning percentage will suffer greatly. Short swings across the moving average will already have moved back across into the other direction when your binary option expires and you will lose your trade. With a strategy like this, there is no guarantee you will win the 70 to 80 percent of your trades necessary to make a profit with binary options.

There are, however, a number of ways to improve your strategy:

  • Wait for a number of periods to confirm the crossover: When the market crosses the moving average, you can wait for x numbers of period to see if the market swings back quickly. If it does not but does continue to move away from the moving average you can invest in a binary option more safely.
  • Wait for the crossover to extend: To eliminate false signals you can make it a rule that the market has to cross the moving average for minimum extension before you invest. You can calculate this minimum extension by using a percentage of the asset’s price, an average of the last periods trading ranges, or another relevant value generated by a technical indicator.
  • Search for increased volume: You can only invest in crossovers that are accompanied by an increase in volume.
  • Using highs and lows instead of closing prices: In an uptrend, you can make it a rule that the low of a period has to cross the moving average, not just the closing price. Conversely, in a downtrend, the high has to close the moving average before you invest in a change in trend direction.

 

Martingale Money Management Systems

Recently, some traders started advertising martingale money management to the binary options community, and some auto traders for binary options started using martingale money management systems. Therefore, it is important to understand the difference between a conventional and a Martingale money management system.

What are the Martingale Money Management Systems?

The logic behind a conventional money management is simple: Every trading strategy will eventually cause a number of losing trades in a row. To survive such a losing streak, a trader needs to limit his investment per trade.

Therefore, with a conventional money management system, a trader always invests a small, fixed percentage of his total capital. If a trader has a total capital of $1,000 and invest five percent of his total capital per trade, for example, he would invest $50 for each trade. As his bankroll increases, he increases his investment. Should he bankroll decrease, he would decrease his investment.

Martingale Money Management SystemsWith a Martingale money management system, on the other hand, a trader would do the exact opposite: He would increase his investment after a loss. The logic behind a Martingale money management system is that if you have lost money, you have to invest more to win the lost money back.

The simplest version of a Martingale money management system is a well known example from roulette: A bets on either red or black. If he loses, he doubles his investment. He repeats this process, until he eventually wins a round. Ideally, this strategy will always win him the amount he first invested.

Does Martingale Money Management work with binary options?

Throughout history, many people have used Martingale money management systems in all sorts of investments. They all encounter the same two problems:

1) Limited capital

The most obvious problem of a Martingale money management system is the limited capital of the investor. At some point, increasing the invested capital simply becomes impossible because investor does not have enough money left.

Of course, this requires a relatively long losing streak. If you plan to earn money with binary options, however, you will have to invest for a long enough amount of time that such a losing streak will certainly occur at some point.

Since every round of Martingale investing prior to your losing streak can at best generate a return of your initial investment, but a losing streak will cost you hundreds of times your initial investment, such a losing streak will wipe out all prior gains you made using a Martingale money management system.

2) Unfair odds

A Martingale money management system implies that, with every turn, you have an equal chance of winning or losing the same amount of money. In reality, though, this is almost never the case. With high / low options, for example, you will receive a payout of at best 75 percent your investment. If you lose a trade, however, you will lose 100 percent of your investment.

This means, after you lose your first trade, you have lost one investment (1 I). With the Martingale money management systems, you will invest twice the amount on your second trade (2 I). Even if you win this trade, you will only win 75 percent of your investment for this trade, which is only 1.5 times your original investment (2 I x 0.75 = 1.5 I). This shows the dilemma of the martingale money management system: Your odds are constantly getting worse.

If you lose your second and your third trade, you will invest eight times your initial investment with your fourth trade. By this time you have invested 1 I (first trade) + 2 I (second trade) + 4 I (third trade) = 7 I. Your investment of 8 I on the fourth trade, however, can only win you 8 I x 0.75 = 6 I. That means, even if you win your fourth trade, you will lose the amount of your initial investment. Since 75 percent is a relatively high estimate for a payout with high / low options, your odds in real life trading are even worse.

The same math applies to any kind of binary option. While touch options offer a higher payout, your binary options broker will calculate the payout always in a way that makes using a martingale money management system unprofitable.

In conclusion, the Martingale money management systems will work perfectly, at first. Sooner or later, however, you will encounter the severe problems that come with a Martingale money management system. Combined with binary options, a martingale money management system will certainly fail. If your auto trading system offers a Martingale money management, make sure to deselect it. If you are trading manually, do not use a Martingale money management system either.

IQ Option Demo

IQ option demo

Do you want to get a IQ Option demo? Trying the broker for free without investing money? It is a great way of finding out if IQ Option is the right fit for you without having any risk involved. Here is how you do it.

General risk warning
The financial services provided by this website carry a high level of risk and can result in the loss of all of your funds. You should never invest money that you cannot afford to lose.

IMPORTANT INFORMATION!  IQ OPTION DOES NO LONGER OFFER ANY KIND OF BONUS. IQ Option has decided not to offer bonuses anymore as a consequence of some traders having suffered further financial loss caused by the attempts to fulfil the required trading volume, which applies to each bonus. Thus IQ Option do not provide deposit bonuses anymore to prevent this from happening.

How to get the IQ Option Demo

Before you sign up with any binary options broker, you should test them first. After all, you are investing money and are potentially choosing a partner for a long trading career. IQ Option understand the importance of the testing process and makes it easy for you – easier than you might think.

To test a binary options broker, many brokers either require you to register a demo account or do not allow you to demo their service at all. With IQ Option, things are different. To get a real account and full access to IQ Option’s trading platform, you only need to fill out a simple form on their homepage with very basic information – provide your name, your email, and your currency, and you are good to go.

You do not need to deposit any money with IQ Option to receive a real trading account. Of course, you can’t make real investments until you have deposited money, but that does not matter much. Even without a deposit, you get full access to their trading platform and you can use the IQ Option Demo in every way imaginable:

  • Test which payouts you will get in which types of trading situations. Are the payouts high enough for the type of trading strategy you want to employ? Can you make money with IQ Option?
  • Test if you like the available binary option types. Do you like the selection of available assets? Can you find the right assets to make money by trading the situations you want to trade?
  • Test if you like the available assets. Are there assets from the market you want to trade? Does IQ Option offer the right type of asset for your strategy?
  • Test the trading platform in general. Do you like the platform’s handling? Can you use the platform for a long time without making mistakes?
Trade with IQ Option now
Start trading today with a small deposit of only $10 with IQ Option!

If you can answer all these questions with yes, you know that you have found the ideal broker for you. In this case, we encourage you to sign up with IQ Option. If you answered one or more of these questions with no, you have to decide how important these factors are to you.

On our site, you can find links to many more trustworthy brokers that you can test.

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