Succeeding in binary options necessitates unparalleled technical and fundamental analysis prowess which is sometimes an uphill task for beginners. Unless you are “out of this world” lucky, making it in financial trading requires more than correctly reading the charts; you need to be razor sharp accurate when placing trades with no room for error which is humanly impossible. That’s where trading systems come in handy. Today we will be doing a review on OptionRobot. If you have a comment or previous experience with the OptionRobot trading system, feel free to tell us in the comment section.
As usual, we will be providing all the information you need to make an informed decision. Our review on OptionRobot will include an overview of how it works, cost, linked brokerage firms, available indicators for technical analysis, integrated strategies and success rate of the trading system.
How OptionRobot works
With over a year on its existence calendar, OptionRobot has stood the test of time and currently ranks among the best trading software in the financial world. It’s rare to see a trading system in the market after such a long time. Its long existence is enough testament of the system’s consistent performance. Well, OptionRobot is an auto trading service where traders are at liberty to either opt for full automation or semi-automation depending on individual needs and preferences. However, one rookie mistake traders make is confusing it with the infamous “binary options trading robot”.
Unlike most trading systems, OptionRobot is completely available online and can be accessed seamlessly on a browser. To use the trading system, it goes without saying that you will require a trading account from one of the supported brokers and have at least the minimum trading balance as stipulated by the broker in question. Apart from that, you are good to go! The trading system is configured via the setting tab and since it is browser –based, it requires a stable internet connection. In a nutshell, you only need a working internet connection, starting capital and a working internet connection. It’s that simple!
Although nothing comes for free in this world, OptionRobot comes at zero costs. Well, you heard it! There are no hidden charges. As mentioned earlier, you only need a trading account with some balance and you can hit the ground running. Costs that you may inquire are broker-related and they are highly unlikely.
Although the developers have indicated that the trading system has 83% success rate, its performance oscillated between 75 and 80 percent during the test period which is a decent success rate. For ten trades, you are more likely to lose not more than three. However, it all depends on the strategy and indicator chosen in the settings tab.
Choosing a broker is always the most important decision you have to make before getting your feet wet in the financial arena. Interestingly, although OptionRobot does not support all the available brokers, a trader can choose between different brokerage brands. It is important to note that brokerage platform chosen dictates most of the trading terms including the availability of expiry durations, payout rates, and the minimum trading balance.
Below is a list of supported brokers and the available expiry durations
BDSwiss is a premium brokerage outfit offering a trade on the reputable second generation SpotOption trading platform. OptionRobot can be used on the BDSwiss platform to trade 30 second, 60 seconds, 2 and 5-minute expiry durations. Options available for auto-trade include Ladder, pairs and One Touch options. Minimum trade size is 5 USD/EUR.
- FM Trader
FM Trader is a binary options broker established in 2013 which also offers tradeon the 2nd generation SpotOption trading platform. Available expiry durations for auto-trade include 60 sec, 90 sec, 2 min, 3 min and 5 min.
- Dinero Libre
Also, has the latest SpotOption trading platform and expiry durations available include 60 sec, 90 sec, 2 min, 3 min & 5 min. Auto trading starts at $5 with the maximum investment being $500.
24Option is one of the leading binary options brokers and to that end, they are heavily regulated by multiple regulatory bodies. Trading starts at $24 and expiry durations available for auto-trade include 60 sec, 90 sec, 2 min, 3 min & 5 min.
Other brokers include:
- Empire Option
- Binary Tilt
- Stock Pair
Trading signals generated by OptionRobot solely rely on several indicators. Well, you can choose to leave all the indicators running or you can decide to only rely on one or two. As a matter of fact, some of the indicators are exact mirrors of each other with the only difference being the names.
Trend-This indicator scouts for prime trading opportunities by analyzing the overall market trend. Basically, an uptrend is likely to generate a Call signal whereas a downtrend is likely to generate a Put Signal.
Moving Average Convergence Divergence (MACD) – MACD is more like the Trend indicator with the difference being the fact that it relies on the difference between 2 moving averages. The 26-day moving average is usually subtracted from the 12-day moving average to generate a trading signal.
Relative Strength Index (RSI)-Signals generated using the RSI depend on traders’ sentiments. This indicator operates on the notion that traders tend to buy an asset when prices are low and sell when prices get too high. Simply put, it generates trading signals in relation to prevailing price resistance and support levels of the underlying asset
Stochastic Oscillator-STOCH indicator determines trades based on both the momentum and speed of Market conditions.
Williams-The Williams indicator is a simpler version of the relative strength index. It is especially useful to traders who prefer trading short positions.
Commodity Channel Index-CCI indicator determines trades by comparing prevailing market conditions with a pre-set average which is used to determine the dominant trend.
This is the most secure strategy available on OptionRobot and if used optimally, you are definitely going to reap big from auto-trading. This strategy is more like the trend strategy with trades evenly spaced.
When using OptionRobot you can set the trading system to use the martingale strategy exclusively. Martingale strategy is the perfect tool if you are after fast profits but at the same time, it comes with a sizeable amount of risks. Interestingly, each available forex pair has its own unique martingale sequence.
Suitable for short positions, the Fibonacci strategy has a superior mathematical edge which makes it very accurate. If you have enough funds in your trading account, you can use this strategy to automatically resize your underlying investment depending on the win-loss sequence.
From our experience during the trial period, we can conclude that the trading system is legit and not a scam. Mind you, we used two platforms (24Option and BDSwiss) to test the authenticity of OptionRobot and we are glad it worked out. However, you can always use the demo platform provided by the developers to learn how it works and if it’s compatible with your trading style. That’s it from us for now but we will keep updating this review every once in a while to keep you informed.