BinaryOptionRobot allows you more freedom to manage the performance of your robot than most other robot providers. To get the best results, you need to understand the BinaryOptionRobot performance tools and how to handle them.
BinaryOptionRobot offers 4 tools to manage the performance of their robot. Three of these tools are available to every trader, and one tool is part of BinaryOptionRobot’s VIP package. Even without the VIP package, though, you can enjoy three performance tools that only few other robots offer. In detail, those tools are:
BinaryOptionRobot allows you to manage your investment amount per trade. This amount specifies how much BinaryOptionRobot invest when it has found a trading opportunity.
Setting a reasonable investment per trade is important. A too high investment per trade can ruin you if you lose a few trades in a row. A too low investment per trade will not allow you to grow your capital. Finding the golden mean between both options is one of the most essential steps on your way to successful trading.
The key to finding a reasonable investment per trade is a money management strategy. With your money management strategy, you define how much you invest by a fixed set of rules. This is important, as following your gut feeling will always trick you into either investing too much or too little.
With a solid money management, you always invest a small fixed percentage of your overall account balance, usually 2 to 5 percent. Starting with an account balance of $500, you would invest $10 to $25 per trade. As your account balance increases, you can start investing more. With an account balance of $1,000, for example, you can invest $20 to $50 per trade.
Most new traders make the mistake of investing much more per trade than these limits would allow. Since binary options are a numbers game, you know with absolute certainty that BinaryOptionRobot will lose some of its trades. When these losses come in a row, as they sooner or later inevitably will, investing too much per trade can ruin you quickly.
To avoid this disaster, define a fixed investment percentage per trade and stick with it.
With the stop loss tool, BinaryOptionRobot allows you to stop trading after you have lost a certain number of trades.
In theory, the stop loss tool is ideal to avoid losing streaks. Once BinaryOptionRobot has lost a certain number of trades, you simply sit out the rest of the losing streak, rejoining trading the next day.
In real life trading, however, things are more complicated. Let’s assume that you know that you win 70 percent of your trades with BinaryOptionRobot. In this case, your odds to win the next trade are always 70 percent, regardless of what has happened in the trades before.
Therefore, cancelling trading after a few losing trades does not improve your odds to win the next trades and using the stop loss tool makes little sense for traders.
The only exception to this rule can be traders that either invest too much per trade or rarely check their accounts. These traders might want to avoid making too many trades in one session, which the stop loss tool can help them with.
BinaryOptionRobot offers a reverse trading tool. By enabling this tool, you can command BinaryOptionRobot to trade against its own predictions:
Using this option makes little sense. Binary options only allow for two outcomes, up or down. Even by betting on these outcomes randomly, you would win 50 percent of your trades. Reversing your predictions would not help to trade more accurately, even in this worst case scenario.
When you employ the services of a robot with professional analysts, you should assume that these analyst would increase the winning percentage. Otherwise, why would you sign up with this robot?
If the analysts improve the winning percentage by at least 1 percent, reversing BinaryOptionRobot’s signals would reduce your accuracy. Instead of winning 51 percent of your trades, you would only win 49 percent. In every other case, you would lose to. Instead of winning 60 percent of your trades, you would win 40 percent, and so on.
Always disable reverse trading.
Members of BinaryOptionRobot’s pro account can choose one or more risk levels to trade signals from. Choose the risk levels that your feel the most comfortable with and adjust your selection according to your trading results.