Binary Options

Binary Options Trading Strategy Guide

BINARY OPTIONS SIGNAL SERVICES Any Good?

Binary Options Signal Services – a definition

The holy grail of signal services is finding a meaningful and accurate way of predicting which way the market, or market sector, or individual stock or currency will go in the future.  Of course if this was possible with any reasonable sense of accuracy and confidence then the people who know how to do it would be very rich. But as we all know the markets do not behave in an orderly fashion but rather in a somewhat unpredictable way.

Here’s  a quote from Investopedia:
“Forex signal systems can create executions that are either manual or automated. A manual system involves a trader sitting at the computer screen, looking for signals and interpreting whether to buy or sell. An automated trading system involves the trader “teaching” the software what signals to look for and how to interpret them. It is thought that automated trading removes the psychological element that is detrimental to a lot of traders.” Read more: http://www.investopedia.com/terms/forex/f/forex-signal-system.asp

There is a spectrum of interventions between the automated (no trader intervention at all, these systems are sometimes referred to as ‘robotic’ or ‘robots’) and the manual (whereby the trader does everything from calculating the signal to executing the trade).  In between are semi automated systems: they produce signals but rely on the trader to execute the trade, according to his/her judgement or evaluation of the signal supplied.

Binary Option Trading Signals

Discovering these ‘signals’ is a science. There are methods developed by mathematicians, statisticians  and a whole host of analysts who make a living out of forecasting.

What chartists look for are patterns of behavior which statistically predict the future with some degree of certainty. One might be happy to have a 75% probability that a prediction is right – in this way 3 out of every 4 deals will be winners and 1 in 4 a loser, thus an overall profit should be made.

Trend following

One method relies on discovering the trend. This is an investment strategy that tries to take advantage of directional moves that occur either up or down. This strategy lends itself well in the Binary Options field because the nature of a binary option in its simplest form is to buy an option at a low price hoping that it will rise in price within a predefined time frame. This is a call. Alternatively the strategy would be to sell hoping that the price falls within the given time frame. This is a put. If the trend is downwards and this can be confirmed with some analysis then the signal we are getting is to sell (put), conversely if the trend seems upwards then the signal says buy (call).  Other systems might advocate selling on an upwards trend (on the basis of what goes up must come down) or conversely buying on a downward trend.

Trend following is an investment strategy that tries to take advantage of long-term, medium-term, and short-term moves that sometimes occur in various markets. The strategy aims to take advantage of a market trend on both sides, going long (buying) or short (selling) in a market in an attempt to profit from the ups and downs of the stock or futures markets.

Binary Options Signal Services

Traders who use this approach can use current market price calculation, moving averages (see diagram) and channel breakouts to determine the general direction of the market and to generate trade signals. Traders who subscribe to a trend following strategy do not aim to forecast or predict specific price levels; they initiate a trade when a trend appears to have started, and exit the trade upon expiry, hoping that the trend has not reversed against them beforehand.
With binary options short timescales are possible making this strategy very popular and potentially profitable.

The Best Binary Options Signals Services

As with everything else in life “you get what you pay for”.  There are numerous service providers on the market and their signal services costs range from ‘free’ to several hundred dollars per month. With ‘free’ services you’re not likely to get reliable alerts.  What you should be looking for is a binary options trading alerts system that produces consistent positive results.  No-one can expect, in financial markets, a system that is always right.  But statistically if you have a system that is ‘right’ 60%-80% of the time then you should be able to show a profit over a reasonable amount of time.

Live Binary Options Signals

Some service providers allow you to watch a professional trader executing live trades so that you can copy exactly what the professional is doing. One such system is Binary Options Trading Signals Live Here you can see a short video showing you how you can watch and hear a trader (called Franco) making his trades in such a way that you can copy him.

To view more about this service click here,
and if you need to open an account with the same 24Option Binary Option broker’s platform click here.
[By the way we have a review of the 24Option platform on this website, click this link.]

Binary Options Signals Review

We have done a more in depth study of one of the other binary options signal services called OptionBot - a signaling service based on desktop software which is easy to install.

The program monitors 15 currency pairs and releases an audible alert when a reversal of a trend occurs during a given time frame (your choice from 1 minute, 5 minutes, 15 minutes, 30 minutes or 1 hour). The chart that will be displayed changes to match your chosen time frame.

The alert is triggered when the currency pair’s price changes direction by the tolerance amount set by you. The tolerance setting is in pips and its meaning and significance is very well explained in the software’s accompanying video.

A very nice feature of this software is its integration with 5 well known binary option platforms. This makes it easier, and quicker, to place a trade once a signal has sounded. The author of the software suggests that you make your trade with more than one platform at a time. In this way you can overcome the limitation set by some brokers on the maximum amount that can be placed on a single trade . Another reason for having 5 broker’s platforms available is because not all brokers offer all of the 15 currency pairs that the system monitors.

The presentation is nice and clean. Each view has its own tab so it’s easy to switch from the chart view to any one of the brokers that you have chosen from the 5 available; you can of course have all 5 platforms up simultaneously. The broker view is a window looking at the broker’s platform as if you were running that platform at your desk top. This means that placing a trade once an alert is sounded is exactly like, and as easy as, placing a trade on your chosen platform.  You can then tab to another platform and place the same trade again, and again, up to the maximum of 5 platforms.

The author does warn, however, that older desktop machines may not be able to cope with so many platforms open and running at that same time, and so it would be sensible to shut down any other applications running simultaneously on your desktop.

The charts view is clear and uncluttered, unlike many systems charts that require you to have a degree in higher mathematics or nuclear physics to understand!

You do not have to have accounts at all five brokers; one will do but with more you can invest more.

The brokers platforms that the software integrates with are:
Global Option [ Open an account ]
TradeRush [ Open an account ]
CitiTrader [ Open an account ]
XPMarkets [ Open an account ]
OptionBit [Open an account]

You don’t have to go with any of these platforms but these are the ones that are ‘built’ into the system so it’s easier to execute a trade when the time comes.

Now the author calls this application a ‘Bot’ but it doesn’t really fit the definition of a Bot because you have to place your trade yourself and since you do have to take action when the alert sounds you need to be near your system. But you can do other things on your desktop PC whilst waiting for a signal because the alert is audible to draw your attention to it.

These are a sample of some favorable reviews, but, as with all trading there will be losing trades so exercise your money management discipline [Money management is described in Jerry Mann’s admirable ebook ‘Binary Options Winning Formula’  download it from here ].

You can get a completely free 7 day trial of this software, without putting any money up front. You pay if you want to continue using it; your payment releases a registration code which when entered at the prompt enables you to continue using it.

Get your FREE 7 day trial from here… OptionBot

By the way, we should mention that the price feed which is built into the system would probably cost something like $500 a month to source. Option Bot does not charge anything extra for this feed, you pay a one time fee for the software which includes the feed: there is nothing further to pay, ever.

We think OptionBot deserves your attention as one of the most worthwhile Binary Options Signal Services on the market…there’s no charge nor email optin so try it out FREE for 7 days and see for yourself.

←More from Binary Options

↑ Back to Top