Binary Option Signals Robot
Forex and Binary Option Traders will use a signals robot that generates trading signals for fresh and new trading ideas.
With the massive amounts of signal robots available for trading, our goal here at the Binary Option Signals Robot, is to review and test the signal robots that are currently available to traders.
The original reason to use a automated software or algorithm for trade idea generation was to ease the job of a trader. Since trade signal generators have become more common, many new traders have started following these algorithms blind. Following an algorithm blindly when you are not the one who designed the software, leads to high frequency trading which usually leads to wipe out!
There are free tools for traders to use. Many Forex and binary option traders will monitor trade ideas from Seeking Alpha, Stock Twits & Twitter. There are also paid services like Trade The News or Briefing. But this requires traders to read large amounts of articles and headlines. Traders prefer just seeing a quick buy or sell alert and trade based on that.
Auto trading software is becoming increasingly popular today. Unsuspecting investors are lured into believing that they can become a millionaire overnight just by letting the signals robot software place trades for them.
There are many articles online about building and back-testing a trading system. Popular brokers like TradeStation have software which traders use to test and analyze their algorithm. The large hedge funds of the world have entire departments called Quants, dedicated to building algorithmic based trading systems.
Signal Generators
A signal generator gives traders ideas. They are both short term and long term trade ideas.
It is not uncommon for a signal software to issue an alert to long the $EUR/USD and then 10 minutes later issue an alert to short the $EUR/USD. At certain times of the day, there is heavy volatility in the Forex markets leading to short term swings in price in which a trader can make money, both on the upside and the downside.
The benefit of a Signal Generator is that a trader can be alerted to price action in a Forex pair that the trader had not been monitoring. The trader can now look for a trading opportunity within that currency pair.