Table of Contents:
- 1 IQ Option and robots – Avoid the scam
- 1.1 Is it allowed to use a robot with IQ Option?
- 1.2 What is Robotic Trading?
IQ Option and robots – Avoid the scam
An IQ Option Robot can help you trade without doing it yourself. In the past, to make trades in any financial market, you have to do it yourself. You have to carefully conduct some thorough analysis. This analysis should typically include fundamental analysis – which involves checking market news and events around the world to see how they will affect the prices of financial assets.
Beyond that, you have to look at a set of charts and indicators, searching for price patterns that may suggest the future directions of prices of the financial instruments. This is known as technical analysis. After then, you can make your trades.
However, things are not always as easy as they sound. Before you can be equipped enough to conduct the above analysis, you must have undergone a considerably thorough learning process. This will require you to commit some length of time to consistent practice.
That was all in the past. Today, with robotic trading, you can trade without having to go through all of the above.
Is it allowed to use a robot with IQ Option?
In the past, IQ Option used to provide proprietary robots. That is, it used to provide robots that it programmed itself. But due to different factors, that is no longer the case. However, IQ Option is one of the few credible binary options brokers that allow third-party robots to be used on their trading Platforms. Most good brokers don’t.
Furthermore, if you want to use robots to trade IQ Options, there are many of them out there. For instance, there is the popular IQ Option Bot developed in the form of a mobile app by Solution Development. It is listed on the Google Play Store for Android devices. There are also others listed on the Play Store.
Before you use them, we highly recommend that you check the reviews dropped by past users. Even at that, after downloading, we suggest that you first trade them on a demo account.
Warning: The most robots are a scam and you will lose money
After detailed research, we can say that most trading robots are a scam and you will lose your money. It is nearly impossible to find a profitable robot. Most robotic providers just want to receive commissions or money from you. They will fake the results of other clients. You can not trust them. Why should somebody offer you a trading robot? – This makes no sense. If the robot makes continuous money they would not sell them.
- Scammers try to steal your account data with robots
- Robots are not working profitably
- Nobody who has a successful robot would sell it
(Risk Warning: 84% of retail trading accounts lose money)
What is Robotic Trading?
Robotic trading can also be referred to as automated trading. It involves the use of computer software – called trading robots or expert advisors (EA) – to make analysis and enter trades without any physical involvement. What you need to do as a trader is set up the software and link to your trading account, and it will automatically conduct the analysis and execute the trades for you, without you being involved.
Trading robots exist for all markets, and there are now a lot of robots made specifically for binary options trading.
Benefits and Risks of Using Binary Options Trading Robots
While there are many benefits to using trading robots, there are also significant downsides. Outlined below are the advantages and disadvantages of using robots to trade binary options.
The good sides to using a trading robot include:
- Can trade all through the day (24/7)
Perhaps one of the biggest advantages robotic traders have over human traders is that they can function all through the day 24/7 without stopping. Human traders are usually confined to trading within certain periods of the day and they still have to combine trading with other commitments such as family, work, and leisure.
A binary trading robot can work continuously with no need for breaks which means they will be watching and acting on the market at all times. With this, you do not get to miss important market opportunities.
- Not controlled by emotions
One of the most significant causes of losses for binary options traders is that they are influenced by emotions. Because their hard-earned money is involved, the conflicting emotions of greed, fear, and hope can cloud the reasoning of human traders, causing them to make wrong judgments. However, trading robots operate on a set of pre-determined algorithms and they will stick to the rules no matter what.
Traders that use binary robots just need to make the decision of which broker they are going to trade with and make the first deposit. Good binary options trading robots have successful risk management and they follow patience as this brings most of the wins.
- Can operate more effectively
Another feature that differentiates robot traders from human traders is that they are much more effective. A binary trading robot can scan several markets, find opportunities based on defined conditions, and carry out trades according to its rules, all in a matter of seconds. A human trader doing this manually is likely to take much longer and may miss opportunities, or waste time making decisions or entering an order.
- No need for experience
While real binary options trading requires many years of experience and good control over your strategy, auto trading lets you avoid those rules and let robots trade for you. That, however, doesn’t mean you don’t need to educate yourself about strategies, technical or fundamental analysis, because once you will be ready to continue trading without the need for a trading robot.
- More trading with fewer efforts
With trading robots, you can save valuable time. Binary trading robots have a far higher capacity for information than the human brain. Execute more successful trades. Using the trading system to gather much more data makes the trade more reliable.
There are many downsides to trading with robots as well:
- Not good at fundamental analysis
Binary robots are good at conducting technical analysis, which involves reading historical market statistics and price charts to predict what might happen in the future. But they are not so helpful when it comes to analyzing the news and making appropriate judgments. This is what a human trader can do fairly easily.
- Mostly scalping method
Most binary robots make use of short-term trading called scalping. This will not be suitable for traders who prefer holding their trades for longer periods.
By far, one of the biggest disadvantages is that a good number of robots in the market are scams. These losses have led to traders losing significant sums of capital. Hence, traders have to be careful when selecting a trading robot.
Tips on using IQ Option robots
There are some things that we feel you should pay attention to both before or after you select your trading robot of choice. Those tips include:
This pertains to before you choose the binary options robot. Before you choose a binary options broker, ensure it has quite some level of credibility. That is, it has good reviews and comes highly recommended. Another way through which you can determine the credibility of a trading robot is to look at the developer of the robot.
- Back-test the robot
Before you start applying the robot, it is important that you go back in time to check how well it has performed in the past. This is known as backtesting. With this, you can see how the trading software faired under different market conditions in the past. There are many websites to verify this. One trusted website is myfxbook.com.
- Use a demo account
Similar to the above. However, this time you are actually applying the robot software to an actual trading account, without risking your capital. After subscribing to your binary robot provider of choice, don’t apply the software to your live trading account right away. Use a demo account first, and sustain this for some period, say a month. You will understand how it works, the strategies upon which it was built, and much more, without exposing yourself to any risk whatsoever.
- Be Patient
Binary robots have different strategies programmed into them. So, some perform extraordinarily well under some market conditions and fail terribly under others. You have to patiently see the software through different market conditions by testing it for a considerable amount of time before making any conclusions.
Similarly, once you’ve subscribed to one robot, stick to it. Many traders make use of multiple robot traders. That is counter-productive and may lead to heavy losses.
Conclusion on IQ Option robots – Mostly scams
Technology and innovation have made our lives easier in almost all ramifications. One of such is trading. We can now use non-human traders – in the form of bots – to make trading decisions. However, due to their growing popularity, there are many scam bots out there. As such, we highly recommend that you conduct your research about your desired robot before selecting it.
All in all, we do not recommend using any robot on the IQ Option trading platform. Most providers are a scam and you will lose money. They just want to sell you the robot and earn a commission.
(Risk Warning: 84% of retail trading accounts lose money)