In comparison with the classic trading, the use of binary options allows the trader to trade more intensively and earn more, at least in theory. As is the case with conventional currency speculations, trading with the help of expert advisors is quite popular.
While the case with conventional advisors is more or less clear – the files are simply copied to the correct folder in the root terminal, the binary expert advisors work a little differently. Actually, the whole mass of bots working with the options can be divided into two categories:
- semi-automated robots – such program products run the analysis for the trader, but the final decision still rests with the person. This is useful when using an option with a short expiration period;
- more familiar expert advisors designed for installation in MT4, the limiter in this case can be a broker, as not all brokerage companies provide their customers the opportunity to trade options via MT4. Detailed features of the use of such robots are discussed below.
The main drawback of binary options with a small expiration period can be a lack of time to analyze the situation on the market so that the trader has to make a call/put choice at random. The use of the expert advisors can be called a necessary measure to some extent.
Binary expert advisors: the principle of trading
In currency speculation, the trader is only interested in one thing – the direction of the pair. When using options, it is also important, but other principles of trading are also used:
- In/Out – in this case, what is important is whether the price will stay within a specific range or breaks its boundaries as of the end of the life of the contract;
- One/No Touch – in this case, only the price chart achieving the predetermined level matters. What happens after reaching this mark does not matter – a kind of analogue of TP triggering in currency speculation;
- Call/Put – the key in the options of this type is precisely the direction of price movement. For example, if a trader is confident that at the time of the option expiration the price will be higher, they buy a Call option, below – buy a Put option.
Way of trading differs accordingly. You can buy expecting the asset growth, while the growth rate plays a secondary role, as long as the price at the time of the contract expiration is higher than the starting point. Or, like in the speculation in the currency market, you can buy/sell expecting the price reaching a particular level; binary expert advisors show good results at this.
Algobit: more than just a trading robot
Originally Algobit was conceived as a simple semi-automated assistant for traders who are trying to earn when trading online. If trading is conducted not via the downloaded and installed terminal via online services, there are almost no possibilities for analysis, so solutions like Algobit have a right to life.
The main purpose of the bot is to provide a signal to the trader, and you can choose:
- type of analysis – the options are numerous, from the analysis in small timeframes (in this case the data from the m1 – m5 are used) to long-term (suitable for transactions with completion at the end of the day);
- direction of the signal – the direction of price movement is determined and all the other options of the situation will be ignored by the expert advisor.
Conventional binary expert advisors differ from solutions like Algobit, because they can’t work by themselves. But Algobit is a self-contained product, you can enter into transactions in manual mode, in which case it would keep the advice with it. That is, this bot can to some extent replace the trading terminal, although perhaps the possibilities for analytics in this case are fewer.
Examples of some binary expert advisors
When trading via the usual terminal, the process is not much different in appearance from the ordinary trading. You just need to understand that the chosen timeframe is understood by the binary expert advisors also as a term of the option expiration.
And while usually small timeframes, for example, m1, are not seriously considered, when trading binary options you can still earn on such a small time interval. After all, we are interested not so much in an accurate prediction of the behavior of prices, but in the general direction of movement.
There are also expert advisors that are designed exclusively for large timeframes, such as trading robot based on fractals can be recommended only for H4 – D1. Trading in this case is conducted on the rebound from the horizontal level built over the last fractal. The direction of the transaction is always opposite to the last candle.
As for smaller timeframes, there are popular indicator trading robots – ATS binary bot can be an example. Trading is conducted on any timeframe from m1. In this case, the expert advisor may be called omnivorous, it is suitable not only for currency options, but also for stocks, etc.
A slight disadvantage is perhaps the use of Martingale. When trading options, it's not the best choice, but judging by the results of the tests in the real world, it only goes to the benefit of its effectiveness.
Binary expert advisors (or advisors to trade binary options) are very similar in functionality and operation principle to the expert advisors used in trading at the foreign exchange market. The differences lie in the details and are not so much about the algorithm itself but about the features of options trading in general.
Many give in to the trick of quick money when switching to trading options. Do not forget that the potential loss is also higher than in the classical trading. And the use of expert advisors will not solve this problem, but the automation of trading will remove the human factor, which is already significant.Social button for Joomla