Is Option Robot a scam?

Unfortunately, much of the existing auto-trading software has dishonest intentions: it is written, hyped, and implemented to channel as much money as possible out of traders’ pockets and into the bank accounts of the people behind the software. The result has been a general assumption that robots are scams, and should be avoided. What our research set out to do was to evaluate one of these programs, Option Robot, and see which of the two camps it belongs to – honest software, or scam? Because, despite the general atmosphere surrounding trading robots, there are honest and legitimate examples – and these should be welcomed and publicized.

So – is Option Robot a scam, or genuine? Well, the question we have to ask is: if it’s a scam, would reputable brokers put their name to it? The answer is that they have done so. The website names the brokers you can deal with, some of whom are licensed and regulated by bodies you can put your trust in. The brokers are the people you deal with: you give brokers your money, brokers deal with it, and, if you make a profit, brokers give it back to you. That sounds pretty good, doesn’t it? You choose a broker, open an account with them, deposit your money with them and (when you make a profit) withdraw it from them. The unbreakable rule when signing up for software like this should always be: never, ever deal with a broker who is not licensed and regulated by a body whose name you recognise, and which you can trust. And – belt and braces – don’t accept that a broker is licensed and regulated just because they say they are! Check it. And – double belt and double braces – when you’ve opened your account by clicking on the link on the robot’s website, contact the broker directly and ask them to confirm that they have you down as a customer and that they have received your deposit.

When you’ve done all that, what could there possibly be to worry about? Nothing, as far as we can see.

Okay, as long as you’ve satisfied yourself that you’ve placed your money with a reputable broker and they’re carrying out trades on your behalf, what else do you need to know?

How Option Robot works

The software makes deals automatically, but it doesn’t decide what those deals should be – you do that. You set all the parameters so that Option Robot knows when it should make a deal, how big the deal should be, what limits to set, and every other option you can specify with that broker.

Your chosen broker probably offers trades on a wide range of indices, but they’re not all available to you through Option Robot. In fact, the only trades you can make at present are in currencies – the € against the £; the £ against the US$; the US$ against the Can$, and so on. It would be good to see other indices traded, but at the moment, they’re not.

The trader tells the software which indicators to take into account in generating signals. The indicators available are:

• Trend: measures how the price is moving in the market.
• Relative Strength Index (RSI): measures whether the market appears to be overbought or oversold.
• Moving averages convergence divergence (MACD). This indicator can produce very good results when used in tandem with Trend. It compares:
  • How two or more averages are moving; and
  • How that compares with what they have done in the past.
• Williams: named after its inventor, Larry Williams, this indicator is similar to RSI, but uses different values to reveal that what is happening in the market is getting too close to the limits.
• The stochastic oscillator (Stoch): measures the current price momentum and velocity and compares them with how the asset has performed over time. (Stoch is a good reminder that no-one knows for certain what is going to happen in any market, and nor does any software. All we can do is measure present movements and compare them with what has happened following similar movements in the past. There’s plenty of evidence that what happened in the past will happen again, but no certainty. That’s why, in the last resort, all trading is a gamble – a bet that the market will do what you think it will do).
• Commodity Channel Index (CCI). Measures what price movements are doing in a way that, hopefully, will help understand what they’ll do next.

Those indicators – singly or in combination – produce what are called “signals,” and the signals say whether a trade should be made, and, if so, what it should be. The speed at which this happens is at the heart of the difference between manual trading and automated trading. By the time the manual trader has looked at the feed, calculated the indicators, and deduced the signal, the trading opportunity may already have passed. With automated trading, it all happens instantaneously and so you leap onto the bus before it reaches the destination.

One reason it’s a good idea to select more than one indicator when you set your trading parameters is that Option Robot weighs all those it is asked to look at to make sure they are not in conflict. If one says “Buy” and another says “Sell”, there will be no trade. This means you can be confident that you’re getting accurate, high-quality indicators, and making equally high-quality trades.

Screenshot of the Website

Effective Trading Systems

If you’re familiar with stock market trading or forex trading, you will be familiar with the trading systems available at Option Robot. They are long-established and well-tested in those markets, as well as in binary options trading. The challenge lies in implementing the systems – unless you use Option Robot. This is because the team at Option Robot gives you tools to utilise three of the most popular trading systems currently in use. By using one or multiple combinations of these systems, you can control your exposure to risk, as well as manage your investments.

Classic Trading System

This is a popular choice among many traders because of its simplicity and because it is a safe way to manage risk. Of course, there is still risk involved, as there is with any type of trading or investment activity. Mitigating that risk is the key, and that is exactly what the classic trading system does.

It works by keeping the value of each trade constant, unlike other systems which vary the value of trades depending on whether the previous trade was winning or losing. When you use the classic trading system, all your trades are kept at a constant value.

Martingale System

This is a high-risk and high-reward strategy. It is based on the principle that as long as you use a reasonable method to pick which trades to make, one of them will eventually be a winner. Nothing happens with the system when you place a trade that wins – the next trade you place is the same value. If your trade loses, however, the amount invested in the next trade is doubled. If that trade also loses, the next trade is doubled again. This continues until you hit a winning trade and recover some of the losses you’ve made.

Why is it a high-risk strategy? Because there’s no way of predicting how long a losing streak might be. Every trader goes through losing streaks, and if you encounter one that is long, you will need a large balance not to go bust.

The Fibonacci Trading System

The Fibonacci trading system is based on the Fibonacci number sequence. It’s quite a complicated mathematical and trading rule, but those who can grasp the concept and implement it effectively can use it to generate good results.

Like the Martingale system, there is a base value for each trade. If you win a trade, the next trade is placed at the base value. The trading system kicks in whenever you have a losing trade. Basically, it follows the Fibonacci number sequence: if the next number in the sequence is a five, for example, the amount invested in your next trade is five times your base trading value. This ensures losses are recouped and helps you make a profit but it carries similar risks to the Martingale system, i.e., if you go on a long losing streak you can easily run out of money.

Features of Option Robot

Demo Account

One of the best features of Option Robot for those new to the platform is the fact that it offers a demo account facility. This is a fully functional account that has complete access to the trading platform, and all the available tools and features. You can monitor assets, try out trading systems, and place trades. The big difference between a full account and a demo account, however, is that you use dummy cash instead of your own money. Obviously, that means you don’t get any profit if the trade wins but, similarly, you don’t lose anything if the trade loses. This lets you test out the platform at no risk to your own money. For this reason, demo accounts are popular with new traders as well as more experienced ones who want to try out the features of a new trading platform before making any real investments.

There is one thing you should be aware of when setting up your Option Robot demo account: you have to register with Option Robot and open an account with one of their affiliated brokers. You don’t have to make a deposit yet, but some people are cautious even so about registering with a broker. That said, given there is no need to deposit any money this requirement shouldn’t present too many restrictions.

Customer Service

The first place you should look if you have a query about Option Robot or your account is the FAQ section. It is detailed and informative and has answers to many commonly asked queries.

If you don’t find the information you need, you only have one other option – to contact the customer service team by email. The email address is contact@optionrobot.com. Option Robot doesn’t commit to query response times, saying only that you will get a reply shortly.

This is one of its most disappointing features, particularly when compared to some of the alternatives that offer other contact methods, such as live chat and telephone assistance.

Tutorials and Learning

Many reputable binary options trading platforms offer a wide range of tutorials and learning materials to help traders familiarise themselves with the system, and teach them more about binary options trading. These types of educational materials include video tutorials, how-to guides, eBooks, and learning modules. Unfortunately, Option Robot has none of these things.

Strictly speaking, Option Robot doesn’t have to provide them. After all, it is a trading platform, not a broker, and it’s the broker who usually provides the training materials. In the real world, however, most good trading platforms do invest in such materials to help their users. On Option Robot, you can check out the blog, although it is not always kept up-to-date. You can also read the FAQ section; however, you will have to turn to Google for answers to most of your learning questions.

 

Advantages and Disadvantages of Option Robot

Advantages

Like most binary options trading platforms, Option Robot has both advantages and disadvantages. The advantages are:

• A well-built website – the binary options trading market features everything from cowboy operators to multinational companies. As a result, you get a complete range of websites, from the very good to the very bad. Option Robot is at the very good end of the scale. For a start, it doesn’t use stock images of smiling people who are pretending to be successful users – a dishonest tactic which is never a good sign. In addition, the website is intuitive and easy to use, while also being well laid-out with an attractive design.

• Honesty – in a sense, this follows on from the last point. Honesty is a crucial element in a good binary options trading platform, but it is all too rare. Usually what you find is a platform that promises riches of several hundred (or even thousands) each day. That is, of course, untrue, and anyone who has been involved in binary options trading at any level will know this. Those platforms that use this marketing strategy keep making these promises, however, in an attempt to lure in new customers. Option Robot refrains from this, which is a welcome departure from the norm. Instead, it keeps the focus on how traders can use their platform to successfully implement a trading system.

• Customisation information – this feature is a little unusual for the binary options trading industry: not many platforms give much information on how their system can be customised or adapted. Option Robot does, which makes it easier for you to implement the strategy you have developed.

• Free and web-based – binary options trading platforms that charge money simply to access their software ring alarm bells. They often do this because the software has to be downloaded and installed locally on your computer. Most traders do not like either of these things, i.e., neither the fact they have to pay for the software nor the fact they have to install something on their computer. Option Robot is free, plus it is web-based, so there is nothing to download and install. All you need to use the system is internet access and a device – a phone or a computer. The one downside to this is that you cannot access Option Robot if you are offline. In that circumstance, a competitor like Binary Option Robot, which can be accessed offline, would have the edge. However, most people always have an internet connection, so this shouldn’t be a major problem.

• High-quality brokers – trading binary options successfully requires a number of different elements. This includes a good trading platform and an effective strategy. Another essential element, however, is a good broker. The brokers that you can use with Option Robot are all high-quality and recognized throughout the industry.

Disadvantages

It is best that you know as much about a binary options trading platform as possible – including its disadvantages – before you invest your time and money in it. The disadvantages of Option Robot are:

• It lacks a track record – Option Robot offers a number of innovative features, including the impressive signals it generates. This has created a lot of interest in the binary options trading industry, and many people are taking notice of what Option Robot is doing. That said, its track record is short compared to that of its competitors in the market. This is simply because it hasn’t been around for as long, but it remains a fact that its claims of success can’t be verified against the same detailed and time-tested record as other trading platforms. This is not necessarily an indicator of poor quality, but it is something you should consider.

• Only one asset is available – the only asset you can trade at Option Robot is currency pairs. It has decided to focus on one niche in an attempt to become the expert trading platform for that particular type of asset. This is a risky strategy, as most traders like having the option of choosing asset types and including a range of different assets in their trading strategy encompassing indices, stocks, and commodities as well as currency pairs. It may pay off for Option Robot but will be a frustration if you would like to broaden the range of assets that you trade.

• You have to open a new broker account – as explained above, the process of getting set up with Option Robot involves registering an account with both the trading platform and one of their approved brokers. What if you already have some experience with binary options trading, however, and already have an account with one of the brokers offered? Unfortunately, you won’t be able to use it. Instead, you will have to re-register with the broker and open a new account. This is a method of operation that only affects traders with accounts (i.e., those new to binary options trading will not be affected), but it is rarely popular.

• It lacks transparency – most binary options trading platforms provide clear information on who owns the system and who developed the platform. None of this information is available at Option Robot. That means we don’t know who they really are, or where the platform came from. That will be a concern to many people.

Getting Started with Option Robot

If you have read through the advantages and disadvantages of Option Robot, as well as the other information available, and now want to set up an account, you will be pleased to know the process is fairly simple. You will need to register an account which involves giving your name, address, and email address. You will then have to select and register with a broker. For most brokers, this process involves making a minimum deposit. The amount can vary, but it is usually $250 or more. You can make your deposit using one of the many banking options available, including credit card, debit card, or bank transfer. You can also use one of the popular e-wallet services that are compatible with Option Robot, such as MoneyBookers and Skrill. With all these payment methods, make sure you check what charges apply.

Once you have your Option Robot and broker account set up, you can start trading. You have two main options. The first is to start auto trading by simply clicking on Auto Trade. The second is to customise your strategy before launching your trading robot. This involves adding or removing indicators, changing how much you want to invest, or selecting a binary options trading system. The process for doing all of these things is easy to follow. Once this is complete, your trading options robot is ready to get to work. You don’t have to do anything except check in once in a while to monitor progress.

If you are a new trader, the customisation options may sound a bit daunting at first. This is one of the most powerful features that Option Robot offers, however. Other platforms do not always offer this amount of control over how the trading robot operates, and it is a welcome development at Option Robot.

Using Option Robot

Once you have customised your robot or set it to trade automatically, it will start making trades on your behalf. This is why robots like this are referred to as automated trading software, i.e., the robot receives signals, matches them to your strategy, and, if there is a fit, places a trade. The minimum amount of money that can be invested on each trade is $5. This is low enough to keep everyone involved, including those who like to keep their trading values low. The maximum amount you can invest is $500. This prevents rash and potentially irrational trading, where large sums of money are staked on a single trade.

Conclusion

Option Robot is not perfect by any means, and we have outlined several areas where it could do better. These are not deal-breakers, though, and could be resolved by Option Robot with a little effort and focus. Looking at the positive aspects of the platform, the conclusion is that this is one of the top robots currently available for trading binary options.

In general, this is not an easy market for traders to operate in. These difficulties are amplified if you are a new trader in the industry and trying to find your way. The number of scams out there is mind-boggling, even for the big players. The binary options brokers used to be the biggest risk to traders, as witnessed by the number of complaints that flooded into websites like ours, and to regulatory bodies around the world. Trying to navigate through the dodgy brokers at that time was almost impossible. However, regulators stepped in and the picture is now better. Of course, there are still scam brokers out there, but they are not as prevalent as they were in the past. Spotlights are often shown on those brokers by websites like this one, so it is becoming increasingly difficult for them to operate.

That led to another problem, however, as the scammers simply shifted their focus from binary options brokerages to automated trading platforms. The regulatory position in this market is much less clear. In fact, there is not a single jurisdiction in the world that could be described as having sufficient regulation. That leaves it to sites like ours to investigate and analyse the platforms on offer, in order to explain to traders exactly what to expect from a particular provider, and what the potential risks are.

Automated Binary Trading Platform

The name Automated Binary is fairly self-explanatory: it enables you to trade binary options automatically. This means you don’t have to be involved in the nitty-gritty of minute-by-minute, hour-by-hour trading. You simply set it up and switch it on, and it places trades for you automatically. It is sometimes referred to as “automated binary options trading software”, but it is not software in the traditional sense of the word, where you download something and install it on your computer. That is welcome, as most traders in the modern world do not like doing that. Instead, Automated Binary is a web-based solution. That means you access it over the internet, i.e., there is nothing to install on your computer. You can access it from your computer or on a mobile device, including a phone. An internet connection is the only real requirement.

You can access Automated Binary for free, i.e., there is no fee to use the platform or the software. To start trading, however, you will have to deposit money with a broker. The minimum amount is usually around $250.

At first view, the Automated Binary website is good. For a start, it looks professional. Another crucial thing we noticed is there is no obviously fake video with actors pretending to be developers explaining how the system works, and other actors pretending to be traders living comfortable lifestyles as a result of the success they have had on the platform. These types of video are all too common in the world of binary options trading platforms, and they are a blight on the industry. This sort of dishonesty and false promise are among the reasons the industry has such a bad name. To its credit, Automated Binary does not go in for this type of dubious marketing strategy. Instead, it simply gets to the point of explaining what its software can do.

One downside, from an initial inspection of the website, is the fact there is no information on the developers and/or owners of the Automated Binary system. This rings alarm bells for us. It does not prove anything, of course, and Automated Binary might still be perfectly legit (see below for further details), but it would be better if they did include such information. Transparency is always better than secrecy when it comes to binary options trading software providers.

7 Binary Options Rating:

How Automated Binary Works

One thing you won’t find on Automated Binary is how much you can expect to make once you start trading. We like that because those statements are always made-up. There are simply too many variables to make any such claim. When you see these claims on any binary options trading platform, treat them with a huge pinch of salt. Automated Binary does not make any other ultimately meaningless statements about the uniqueness or power of its algorithm, either. Again, this is welcome as they almost all work in the same way. The difference between providers comes down to usability and fine margins of performance. It is good that Automated Binary does not try to fake something that it isn’t in this regard.

So, how, exactly, does it work? In simple terms, Automated Binary uses a number of high-quality indicators to create signals. Signals highlight both an asset and a direction that a trade should be placed. The fast and efficient algorithm in Automated Binary then places a trade based on the signal. The speed factor of the algorithm is one of the crucial elements. This is because microseconds count in the world of trading, and binary options trading is no different.

While the algorithm gives you an edge in terms of speed, you remain in complete control of what it does. You have this control because of Automated Binary’s customization features. For example, you can set the maximum number of trades to make in a day. You can also specify which indicators you want the robot to use, and determine how much money should be invested in each trade.

That leaves the question of trading strategy. Thankfully, Automated Binary does not tie you to a particular trading strategy. Instead, it leaves it up to you to decide how you want to trade. This means you can select the trading method that best suits your personality and, crucially, your attitude to risk. Those trading methods are discussed in the next section, but it is helpful to point out now that this flexibility is welcome in Automated Binary. After all, all traders are different. They range from those willing to take a 20 percent chance of doubling a big investment to those who prefer to go for a much smaller investment and much smaller returns, but with greater chances of success. Any binary options trading platform worth looking at will cater to all these styles of trading. Automated Binary is in this bracket, so it is suitable whatever your attitude to risk. In addition, you can adapt it as your trading style matures. New traders often start with low-risk strategies, particularly when they are working with small and difficult-to-replenish balances. As they get more experienced, they often change their strategy to accept higher levels of risk in order to get bigger payouts. You can follow this path, or any other, with Automated Binary.

Screenshot

Getting Started with Automated Binary

Getting set up with Automated Binary is a relatively easy process that should only take 20-30 minutes. The first step is to register an account. This involves giving basic details like your name, address, and email address. You will also have to set a password. Once you have your account set up, you will need to select a broker from the Automated Binary pre-approved list. There are about 10 brokers on this list, although you won’t find much detail on them on the Automated Binary website. If you want to find out more about the broker, you will have to do that yourself.

Once you have selected a broker, you can start trading whenever you want. Before you start, however, you will need to deposit funds. Be aware that this process can take several days, depending on the deposit method that you choose. This can be frustrating if you use one of the longer methods and expect to be able to start trading straight away; in this situation, a bit of planning is needed.

Once you have registered an Automated Binary account, set up an account with a broker, and deposited funds, you can start trading. In your broker account, click on the option for automatic trading (often called auto trade). You can then go back to Automated Binary to customize how you want the robot to trade for you.

Your options include:

• Trading strategy – this includes classic trading or using the Fibonacci or Martingale methods
• Value of each investment
• Maximum number of daily trades
• Type of indicators to use
• Number of indicators to use
• Trade expiry times
• Asset types

One of the ways in which Automated Binary stands out from other binary options trading platforms is that it gives you control over how your trades are placed. Most of the other options on the market lock you into a particular trading strategy, claiming this is the one that works best. Invariably, this means it works best for the platform and its owners, not for you. With Automated Binary, you can choose what is best for you. You will, however, find promotional material on Automated Binary that tries to get you to use a particular strategy, i.e., the one that is the most profitable for them. Don’t just accept these recommendations blindly, however. Always make sure they are the best option for you by doing your own research.

Automated Binary Pre-Approved Brokers

Part of getting set up on Automated Binary is selecting a broker. You have to do this before you can make a deposit, get any bonus, or start placing trades. Here are the broker options that you have on Automated Binary:

• StockPair
• BinaryTilt
• Banc de Binary
• Empire Option
• 24Option
• Skyline Markets
• Binary Book
• Bloombex
• TropicalTrade
• Opteck

If you are familiar with the binary options trading industry, you will recognise all these as well-known names. In fact, they are some of the biggest brokers in the world and, combined, account for over 50 percent of the binary options industry market share. Automated Binary has, therefore, gone for the big players when setting up deals with brokers. All 10 of the brokers on the list above have well-established reputations, plus they are licensed by CySEC. In addition, some of them are licensed and/or regulated by other bodies such as the FCA or the European Union. This is not a guarantee, of course, but it does indicate they have acceptable practices. When brokers of this caliber are involved, we normally find problems encountered by users are with the trading platform, rather than the broker. As Automated Binary appears to be a robust trading platform, the combination of this robustness and the list of brokers above looks promising.

Demo Account

Demo accounts on binary options trading platforms give you the opportunity to try before you buy, or, in the case of investing and trading, try before you trade. Demo accounts give you access to all the platform’s features and functions but you trade with virtual money rather than your own real money. This means you can’t win anything but you can’t lose anything either. Automated Binary offers this facility on its platform. You have to register with the website, but that is the only requirement – you do not have to register with a broker, and you do not have to deposit any money. Once you have set up your demo account, you will have a virtual balance of $50,000. How you use that balance is up to you, but the best approach is to use it as if it were your own money. This is the only way to get a realistic view of what using the platform is like. Also, remember that you cannot get additional virtual money if you lose the £50,000 – once that is gone, your demo account will stop working.

One thing you should remember with demo accounts, however, is they are not the same as trading in the real world. We know this from the experience of real traders, i.e., they go through a demo account and see success, but when they move to a real account, they start to lose money. There are a number of reasons for this, including that some trading software services are not as good as they appear to be on the demo account. While demo accounts are good, the only way to really discover if a trading platform is going to be profitable for you is to try it for real. Of course, this brings risk. After all, when trying the platform for real, you will be trading your hard-earned money. The best advice we can give you is, firstly, to read reviews and ask other people who have used the platform about their experience. This is where websites like this one are invaluable. When you actually start trading, however, begin slowly and with the lowest possible investment amount. This means the risk to your money is kept to a minimum.

Automated Binary’s Accuracy Levels

One of the most common questions we are asked about Automated Binary – or any other binary options trading platform – concerns accuracy, i.e., how accurate its signals are, and the trades that it subsequently places. This is understandable as the accuracy levels of an automated trading platform are crucial to its success: the greater the accuracy, the more money you will make. From what we can see, Automated Binary has an accuracy level of 85 percent. This means payouts of 85 percent in normal circumstances. That caveat is important, as all markets, including binary options, can be impacted by external events including current affairs and financial shocks. These events can dramatically reduce accuracy levels.

How does Automated Binary compare with other binary options trading platforms, however? It actually performs quite well. It is not the best, but it is far from being the worst. Average payouts from brokers and platforms are in the range of 70 to 89 percent, so you can see that Automated Binary is at the upper end of this scale.

How does it achieve this success and accuracy level? What does Automated Binary do that other automatic trading platforms don’t? The answer to these questions lies in the signals that it produces and on which it bases its trades.

Indicators and Signals

Signals are used to place trades. They are generated by indicators, and almost all binary options trading platforms use both indicators to generate signals and signals to execute trades. Automated Binary is no different: it uses technical charts, graphs, and other standard trading tools in addition to six technical indicators. It is the technical indicators that we are interested in, as they set it apart from its competition.

If you are familiar with forms of trading other than binary options, you will recognize the indicators listed below. This is because they are well-established and tested. As a trader on Automated Binary, you get to choose which indicators are included in your trading strategy. You have to choose at least one, and the maximum you can have is six, but within those parameters, you can have any combination you want. How you choose depends on your attitude to risk, your trading style, the expiry periods, and the type of asset.

The indicators available on Automated Binary include:

• Williams Percentage Range Indicator
• Relative Strength Index (RSI)
• Stochastic Oscillator
• Commodity Channel Index (CCI)
• Trend Indicator
• MACD (Moving Average Convergence Divergence)

There are a few things to note when considering these indicators. The first is that they are all different, and they all have advantages and disadvantages, i.e., there is no holy grail of binary options trading in the list above. For example, the Stochastic Oscillator and Williams Percentage Range Indicator attempt to identify situations where an asset is in an overbought or oversold condition. The RSI indicator, on the other hand, measures an asset’s momentum and speed in relation to the movement of its price.

As each indicator works in a different way, most experts agree that the best approach is to combine several indicators. In reality, this means Automated Binary will not place any trades unless the conditions of each signal are met, i.e., if you have all six indicators switched on, the conditions of all six must be met before a signal is generated. This helps to eliminate false positives and inaccurate indicators due to fluctuating market conditions. In fact, this is how Automated Binary is able to achieve the 85 percent accuracy figure. It would be impossible to hit that level of accuracy if it used fewer signals.

Trading Systems

Automated Binary offers several trading systems (or money management methods) that you can use to control how the software executes trades on your behalf. They are well-established systems that you might already be aware of. Here are your options:

• Fibonacci – the Fibonacci system is based on a number sequence that was first discovered by the famous mathematician, Leonardo Fibonacci. The trading system uses the number sequence to create a golden ratio by which to place trades. When this is done properly, it is possible to predict price reversals in assets, among other things. It is not an easy strategy to implement, however, and greatly depends on the correct numbers being used, as well as other factors. Despite this, it is a trading strategy that is successfully used by traders in the stock market, as well as by forex traders all around the world. Many of them generate high profits. The biggest downside of the Fibonacci trading system, however, is the level of risk involved. This often makes it off-limits to new traders or those with restricted budgets. If this is you, the classic trading system is often a better option.

• Classic – the classic trading system has a fairly basic concept: the value of each trade executed remains the same, regardless of whether you won or lost the previous trades. It is attractive because it carries with it a low level of risk, meaning that losses are kept to a minimum. The flip side of that, however, is that any potential profits are kept to a minimum as well. It is often used by people who like the slow and steady approach, or by those who are learning about the binary options industry and don’t want huge exposure to risk in the early days.

• Martingale – the Martingale system is sometimes referred to as the “Compound System”, a name that is a better description of how it works. It is a simple process, but the workings-out can be challenging in the real world. When you adopt this trading system, the amount of money placed on a trade is based on what happened in the previous trade. If you won the previous trade, your next trade is placed at the standard level. If, however, you lost the previous trade, your next trade value is doubled. This doubling continues if you get further losses; in fact, it continues until you get a win. When you do win, your losses are recouped. The risk with this system is that losing streaks can be long – longer than many account balances can withstand. If you do the sums, you can see that a step-by-step doubling of your investment will result in very high trades being placed within relatively short periods of time. You need to have enough money in your balance to handle this doubling effect, and you need the stomach to lose big in the hope of winning big in the end. It is, therefore, the most rewarding strategy, but it is not for everyone, particularly the faint-hearted.

Available Assets

The assets available at Automated Binary are one of its most restrictive features. You have a number to choose from, but they all come from the same category, i.e., currency pairs. This means you can’t trade on assets such as commodities, stocks, or indices.

The range of currency pairs available, however, is extensive and includes many of the world’s major currencies. Some of the options you will find are:

• GBP/USD
• EUR/USD
• USD/CAD
• AUD/USD
• EUR/GBP
• USD/JPY

The above currency pairs and the individual currencies themselves provide a number of trading opportunities.

Expiry Times

The optimum expiry time in binary options trading is based on the asset type. With currency pairs, short expiry times generally work best because of the volatility often seen in the currency markets. As a result, the expiry times available at Automated Binary all cover short periods of time, ranging from 30 seconds to five minutes.

One thing to remember is that your browser has to remain open for trades to be executed. Automated Binary says this is for security reasons.

Conclusion

We have seen a lot of binary options trading scams in our time, and have experienced most of the tricks in the book. We can confidently say, therefore, that Automated Binary is not a scam. It is professionally set up, the features work smoothly, and the available brokers all have well-established reputations. They are all also licensed by CySEC. In addition, there is no clear pattern of complaints or negativity surrounding Automated Binary. In fact, most traders report a positive experience. As a result, this is a binary options auto trader that we would recommend.