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Binary Options Strategy.

Started by admin, Sep 30, 2019, 04:15 pm

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How To Execute The Double Red Strategy.
To execute the double red strategy with IQ Option, here's what you do:
Choose a short period for your chart. IQ Option are short-term investments, and your chart's period should reflect that. Choose a period somewhere between 5 minutes and 1 hour. Find a resistance level. Sometimes, you will find a resistance level directly in the chart. If the price itself offers no resistance levels, you can add technical indicators. Bollinger Bands and technical indicators with significant numbers of periods (20, 50, 100, 200, for example) usually offer great resistance levels that will influence the market. Invest when you find two red periods in a row. Once the market approaches the resistance, monitor price movements closely. Once you see two periods in a row, predict falling prices. Most traders use low options for this strategy.
If you add another indicator (the Average True Range, for example) and like to a take a little more risk, you can also use one touch options or ladder options.
Keep your expiry short. The double red strategy creates signals based on two candlesticks, which means that its predictions are only valid for very few candlesticks, too. Ideally, you would limit your expiry to one or two candlesticks. For example, on a 15-minute chart, you would use an expiry of 15 to 30 minutes.
Strategies For Beginners.
We have the three best strategies for beginners, from high-potential to risk-averse.
What do beginners need to know? A risk-averse strategy: following trends A high-potential strategy: trading swings An intermediate strategy: trading gaps.
With this information, you can find the best strategy to start trading IQ Option as complete newcomer.
What Do Beginners Need To Know?
IQ Option strategies for newcomers must fulfil some special criteria. They must be simple but effective, quick to understand but profitable. There are many complicated strategies that can make money if a trader executes them perfectly.
Beginners, however, will be overwhelmed, make mistakes, and lose money. The goal of a good strategy for newcomers to create similarly positive results while simplifying the strategy.
Let's take a look at a few strategies that can fulfil these criteria. We will present a risk-averse strategy for those traders who want to play it safe, a riskier strategy for those who want to maximise their earnings, and an intermediate version.
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Risk-Averse Beginners Method: Following Trends.
Following trends is a secure, simple strategy that even newcomers can execute. Trends are long lasting movements that take the markets to new highs and lows.
Movements that take the market to new highs are called uptrend, Movements that take the market to new lows are called downtrends.
The trick with trends is understanding that they never move in a straight line. An asset's price is determined by the relationship of supply and demand, and there is no perfect movement where supply always exceeds demand or vice versa. It is simply possible for all traders to keep buying or selling continuously. There must always be brief periods during which the market gathers new momentum.
These periods are called consolidations. During a consolidation, the market turns around or moves sideways, until enough traders are willing to invest in the main trend direction.
The alternation of movement and consolidation creates a zig zag line in a particular direction. This is a trend.
An uptrend takes the market two steps up, then one step down, and then two steps up again. And so on. A downtrend takes the market two steps down, then one step up, and then two steps down again. And so on.
Finding Trends.
When you look at the price charts of stocks, currencies, or commodities that have risen or fallen for long periods, you will find trends behind all of them. Trends can last for years, but the more you zoom into a price chart, the more you will find that every movement that appeared to be a straight line when you looked at it in a daily chart becomes a trend on a 1-hour chart. What seems to be a straight movement in a 1-hour chart becomes a trend on a 10-minute chart, and so on.
There are many levels of trends. Regardless of which time frame you want to trade, there is always a trend you can find.
To follow a trend once you have identified it, you have a few different options:
Invest in a high/low IQ Option: This is the simplest strategy. When you recognise an uptrend, invest in a high IQ Option; when you find a downtrend, invest in a low IQ Option. Choose your expiry about as long as a full cycle. If an uptrend takes 30 minutes to create a new high and low, choose an expiry of 30 minutes. Then, the market should definitely be higher than now. If you want, you can also use an expiry twice or three times as long as a cycle. Just stay with a multiple of the typical cycle length. Once you are comfortable with this strategy, you can think about monitoring failure swings with the Money Flow Index (MFI) and Relative Strength Index (RSI) to evaluate the remaining strength of a trend or adding a moving average to your strategy. Invest in a one touch IQ Option: Once you have found a trend, you can predict the speed with which the market will rise or fall. For example, if you know that a trend has increased an asset's price by £0.1 every 15 minutes, you can calculate the trend's trajectory and invest in a one touch IQ Option. When your broker offers you a one touch IQ Option with a target price £0.15 away from the current market price and an expiry of 30 minutes, you know that there is a high chance that the market will reach this target price. Find a trend, check your broker's one touch options, and if you find one within reach, invest. Combine both strategies: You can also combine both strategies. When you find a trend, invest in a high/low IQ Option in trend direction and calculate whether it makes sense to invest in a one touch IQ Option. If so, invest in both options; if not, stick with the high/low IQ Option alone.
Since these are relatively safe strategies, you can afford to invest a little more on each trade. We recommend somewhere between 3 and 5 percent of your overall account balance.
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High-Potential Beginners Strategy: Trading Swings.
Trading swings is a variation of our first strategy, following trends. A swing is a single movement in a trend, either from high to low or vice versa. Every cycle of a trend consists of two swings: one upswing and one downswing.
Instead of trading a trend as a whole (like trend followers), swing traders want to trade each swing in a trend individually.
The advantage of this strategy is that every trend provides them with multiple trading opportunities, not just one.
More trading opportunities mean more potential winning trades, and more winning trades mean more money. The downside of this strategy is that trading a swing is riskier than trading a trend as a whole. You are trading a higher potential for a higher risk - if that is a good idea depends on your personality.
Some traders lose interest if they trade only one IQ Option in a trend. They are in danger of straying from their strategy and making bad decisions. These traders would do better with a swing-trading strategy. Some trades will get nervous when they follow the third or fourth consecutive swing in a trend. Afraid that the trend will end soon, they will stray from their strategy and make bad decisions. These traders can do better by following the trend as a whole.
Investing Levels.
If you decide to become a swing trader, we recommend using a low to medium investment per trade, ideally between 2 and 3.5 percent of your overall account balance. Only traders who like to take risks should invest more, but never more than 5 percent of their overall account balance.
Choose your expiry according to the length of a typical swing. If you expect an upswing and a typical upswing takes about 30 minutes, use an expiry of 30 minutes. Choosing the right expiry is no exact science, and you will need a little experience to find the perfect timing.
To identify ending swings, you can use technical indicators. Momentum indicators such as the Relative Strength Index (RSI) or the Money Flow Index (MFI) are popular choices, just like moving averages.
The Intermediate Beginners Strategy: Trading Gaps.
Trading gaps combines an intermediate risk with a good chance for high profits. The strategy is simple enough for beginners to learn it within a few hours.
Gaps are price jumps in the market. At the end of one period, something influenced the market strongly, and the price jumped to a higher or lower level with the opening price of the next period. Candlestick charts are ideal to find gaps because they clearly visualize the gap between one period's closing price and the next period's opening price.
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Gap Types.
The most common gap is the overnight gap. When the stock market opens in the morning, all the new orders that were placed overnight flood in. If traders were optimistic or pessimistic, there is a good chance that most of these orders point in the same direction. The market opens significantly higher or lower, and there is a gap between yesterday's last price and today's first price.
Such a gap is a significant event because the same assets are suddenly much more expensive. The market can react shocked, some traders might take their profits; or the market can push forward, providing the sense that this is the beginning of a strong movement.
To know how you can profit from gaps, you have to know these three types of gaps:
Breakaway gaps. Breakaway gaps happen during sideways movements. In these periods, the market is unsure about where it wants to go and builds up momentum for the next movement. When prices jump up or down and this jump is accompanied by a high volume, the market has created enough momentum to start a new movement. You can profit from this knowledge and invest in a high IQ Option in the direction of the gap. Since you are expecting a longer movement, choose your expiry longer than one period of your chart. If you are trading a 15-minute chart, for example, use an expiry of at least 15 minutes. Acceleration gaps. Acceleration gaps occur during a trend. While the asset was already trending up or down, something must have happened that intensified this momentum. The market jumps in the direction of the trend and creates. In an uptrend, acceleration gaps always occur in an upwards direction; in a downtrend, acceleration gaps always occur in a downward direction. Like breakaway gaps, acceleration gaps are accompanied by a high volume. Use a similar expiry as with breakaway gaps. Acceleration gaps also allow you to invest in a one touch IQ Option because, after the gap, the trend will move faster than before the gap. If your broker offers you a one touch IQ Option that would have been just out of the reach of the previous trend, you know that there is a good chance that the accelerated trend will reach it. This might be a good opportunity. Exhaustion gaps. Exhaustion gaps are very different from the first two gap types because they signal an impending reversal. Exhaustion gaps occur during a strong movement in the direction of the movement - just like acceleration gaps. The difference between both gap types is that exhaustion gaps are accompanied by a low volume and that the market already begins to reverse during the period. After an exhaustion gap, the market is likely to close the preceding gap, which provides you with a great opportunity to trade a one touch IQ Option or a high/low IQ Option. Common gaps. Common gaps happen during sideways movements. They are accompanied by a normal volume and represent random movements with little long-term significance. Since common gaps are likely to close, you can invest in a one touch IQ Option or a high/low IQ Option.
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Price Jumps.
The basic principle of all four gaps is the same. Gaps are significant price jumps, which is why many traders now have an incentive to take their profits or enter the market. Both forces push in the opposite direction of the gap and are likely to close it. For a gap to remain open and create a new movement, the gap has to be accompanied by a high volume. This high volume indicates that many traders support the gap, and that there are few people who will take their profits or invest in the opposite direction immediately after the gap.
Beginners Strategy - Conclusions.
Even complete novices and beginners can find a simple but effective strategy that could make them money.
Risk-averse traders can follow trends as a whole. Traders who are willing to take risks if it increases their potential can trade swings. Traders who want a good mix of risk and potential can trade gaps.
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Zero-Risk Strategy.
With IQ Option A zero-risk strategy is the dream of any financial investor. While it is impossible with any investment, IQ Option can get you closer than anything else.
Is A Zero-risk Strategy Possible?
When you invest, there is always some risk. Despite all efforts to predict what the market will do next, nobody has yet found a strategy that is always right. Sometimes, the market moves in unpredictable ways and does things that seem irrational.
In hindsight, we often find good explanations for these events. As a trader, you have to avoid letting this hindsight bias confuse you. When a trading day is over, it is easy to say that this event moved the market the strongest. But when a trading day begins, it is often almost impossible to predict which of the many events of the day will have the strongest impact on the market and how it will influence the market. Even beyond the stock market, financial investments always include some risk.
When you invest in securities with a fixed interest rate, there is always the chance that the bank that emitted them has to file for bankruptcy. Many countries protect your money up to a certain amount, but beyond that, the risk is yours. When you buy government bonds, there is always the chance that the government goes bankrupt. Since bonds have long expiries of up to 30 years, a lot can happen over this time.
Simply put: a zero-risk strategy is impossible with any asset. But IQ Option offer a few tools that allow you to get relatively close to zero risk. Let's see how you can do that.
How To Get Close To A Zero-risk Strategy.
Most IQ Option brokers offer a great tool: a demo account. Demo accounts work just like regular accounts but allow you to trade with play money instead of real money. In the risk-free environment of a demo account, you can learn how to trade.
You can try different strategies, find the one that suits you the best, and perfect it. You can wait until you switch to real-money trading until you have a solid strategy that you know will make you money by the end of the month. While many stock brokers offer a demo account, too, IQ Option have one great advantage: IQ Option work on a shorter time scale, which means that you learn faster and better.
When you buy a stock, you have to wait for months or years until you know whether you made the right decision. In the meantime, many unique things happen, which is why you will eventually conclude that the situation is unrepeatable and you have learned nothing. When you trade a binary IQ Option, you know within a few minutes whether you have made the right decision. In the meantime, there are no events that distort your result. When your IQ Option expiries, you get a clear result. You know whether what you did worked or not. Because IQ Option work on such short time scales, they allow you to create and test a strategy much better than any other type of investments.
Once you have traded a strategy with a demo account and turned a profit for a few months in a row, you know that there is a very high chance that you will make a profit when you start trading real money, too. There will still be some risk, but IQ Option have helped you to eliminate as much risk as possible.
For those still looking for zero risk trades, Arbitrage is another IQ Option.
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Breakout Strategy.
The breakout strategy utilizes one of the strongest and most predictable events of technical analysis: the breakout.
What Is A Breakout?
Breakouts occur whenever the market completes a chart formation. These completions indicate significant changes in the market environment. The market will pick up a strong upwards or downwards momentum, which means that many traders have to react to the change.
Some traders will close their positions because the event negates their predictions. When a trader predicted rising prices but an event indicates prices will fall, this trader will close their position before they lose money. Some traders will open new positions that point in the direction of the new trend. Many traders will do both. When a trader can predict where the market will go, there is no reason why they should not trade this prediction. Traders that realize that their original prediction was wrong will likely invest in the opposite direction.
All of these three possibilities create a strong momentum in the same direction.
When the market completes a downwards formation, some traders will short sell the asset; some will sell their long positions. Both actions create downwards momentum. When the market completes an upwards formation, some traders will buy the asset; some will close their short positions. Both actions create upwards momentum.
Since most traders anticipate the payout, they will place orders that automatically get triggered when the market reaches the price level that completes the price formation. These orders intensify the momentum even more.
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How Can I Trade The Breakout With A Strategy?
Digital options offer a number of strategies to trade the breakout. Here are the three most popular strategies:
1. Trading the breakout with high/low options . When you anticipate a breakout, wait until the market breaks out. Once it happens, invest in a high/low IQ Option in the direction of the breakout. If the breakout happens in an upwards direction, invest in a high IQ Option; if the breakout happens in a downwards direction, invest in a low IQ Option. Use an expiry equivalent to the length of one period. This is the low-risk/low-reward way of trading the breakout. 2. Trading the breakout with one touch options . Breakouts are strong movements, which is why they are perfect for trading a one touch IQ Option. One touch options define a target price, and you win your trade when the market touches this target price. Once you see the market break out, invest in a one touch IQ Option in the direction of the breakout. This is the medium-risk/medium-reward way of trading the breakout. 3. Trading the breakout with ladder options . When an asset breaks out, invest in a ladder IQ Option in the direction of the breakout. Choose a target price with which you feel comfortable but that still provides you with a high payout. This is the high-risk/high-reward way of trading the breakout. All of these three strategies can work. Choose the one that best matches your personality.
Three Strategies For Bollinger Bands.
There are hundreds of strategies that use Bollinger Bands. Regardless of which strategy you use, there is almost no downside to adding Bollinger Bands to your chart. Even if you do nor trade them directly, having three additional lines will not confuse you. On the contrary, it will subconsciously influence to make better decisions.
Nonetheless, we will now present three strategies that not only feature Bollinger Bands but use them as their main component. Understand these strategies, and you will also be able to use Bollinger Bands in your strategy.
Strategy 1: Trading Outer Bollinger Bands With High/Low Options.
This is the simplest strategy, and the one with the least risk. It can be explained in two simple steps:
Compare the current market price to the price range of the Bollinger Bands. If the market is near the upper end of the Bollinger Bands, invest in falling prices with a low IQ Option. If the market is near the lower end of the Bollinger Bands, invest in rising prices with a high IQ Option.
That's it. Even newcomers can immediately execute this strategy.
There is one thing you should know, though. Since every new period moves the Bollinger Bands, what is the upper range of the current Bollinger Bands might not be the upper range of the next periods. A quickly rising market will push the Bollinger Bands upwards, too; and a quickly falling market will take the Bollinger Bands down with it.
Because of this limitation, the strategy works best if you keep the expiry of your binary IQ Option shorter than the time until your chart creates a new period. If there are 30 minutes left in your current period and the market approaches the upper end of the Bollinger Bands, it makes sense to invest in a low IQ Option with an expiry of 30 minutes or less.
If you want, you can also double-check your prediction on a shorter period. Switch to a chart with a period of 15 minutes, and if the market is near the upper range of the Bollinger Bands, too, you know that there is a good chance that it will fall soon. If it is in the middle of this trading range, however, you might consider passing on this trade.
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You might also consider upgrading this strategy to trade IQ Option types with a higher payout. By adding a momentum indicator, you can invest in IQ Option types that require a strong movement. To understand how to add this indicator, consider the example of our next strategy.
Strategy 2: Trading The Middle Bollinger Band With One Touch Options.
The middle Bollinger Band has special characteristics. While it offers a resistance or support level, the market can break through it. When it does, the Band changes its meaning.
When the market trades above the middle Bollinger band, the band works as a support. If the market breaks through this support, the middle band becomes a resistance. The market was trapped between the upper and middle bands and is now trapped between the middle and the lower bands. When the market trades below the middle Bollinger band, the band works as a resistance. If the market breaks through this resistance, the middle band becomes a support. The market was trapped between the lower and the middle bands, and is now trapped between the middle and the upper bands.
Both events change the entire market environment. When the market breaks through the middle band, it suddenly receives enough room to move to the outer band. This means you know the direction in which the market is likely to move and the distance, which is a great basis for trading a high-payout binary IQ Option.
Here's what you do:
Wait until the market breaks through the middle Bollinger Band. When the market breaks through the middle Bollinger Band, invest in a one touch IQ Option in the direction of the next Bollinger Band. When the market breaks through the middle Bollinger Band in an upwards direction, invest in a high one touch IQ Option. When the market breaks through the middle Bollinger Band in a downwards direction, invest in a low one touch IQ Option.
The most important aspect of this strategy is choosing the right expiry.
Long expiries move the target price of your one touch IQ Option further away. Short expiries keep the target price of your one touch IQ Option close.
For this strategy to make sense, you have to use a one touch IQ Option with a target price that is within the Bollinger Bands. On the other hand, the expiry has to be long enough to give the market enough time to reach the expiry. Finding the right mix of closeness and enough time can take some experience. You can also use momentum indicators such as the Average True Range (ATR) to provide a mathematical basis for your estimate.
Strategy 3: Trading Outer Bollinger Bands With Low-Risk Ladder Options.
The market is highly likely to move beyond the outer Bollinger Bands. This knowledge is a great basis for trading low-risk ladder options.
Ladder options define a number of different target prices, usually five or six. Some of these prices are above the current market price; some are below it; some are close, some are far away. As a result of these characteristics, some target prices will be inside the Bollinger Bands' price channel; some will be outside of it.
Since the market is highly unlikely to move outside the Bollinger Bands, it is highly unlikely to reach target prices that are outside the Bollinger Bands' price channel. Ladder options allow you to make this prediction and win a simple trade.
To execute this strategy, here's what you do:
Set the period of your chart to the expiry of your ladder IQ Option. Compare the target prices of your broker's ladder IQ Option to the Bollinger price channel. Pick the target price with the highest payout that is still outside the Bollinger Bands. Predict that the market will be unable to reach this target price. If the target price is below the Bollinger Bands, predict that the market will trade above the target price when your ladder IQ Option expires. If the target price is above the Bollinger Bands, predict that the market will trade below the target price when your ladder IQ Option expires. Repeat the process for all expiries of ladder options that your broker offers.
To execute this strategy well, make sure that the period of your chart matches your expiry. Bollinger Bands change with every new period, and a target price that is outside the reach of the Bollinger Bands during the current period might be well within their reach during the next period.
When you trade a ladder IQ Option with an expiry of one hour based on a price chart with a period of 5 minutes, so many things can change before your IQ Option expires that the Bollinger Bands become almost meaningless. By matching the period of your chart to your expiry, you guarantee that the Bollinger Bands stay the same until your IQ Option expires.
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Volume Strategy.
The volume is one of the most under-appreciated indicators. Combined with IQ Option, a volume strategy can create great results.
What is a volume strategy?
The trading volume is a simple yet important indicator. The volume indicates how many assets very traded during a period. The direction of these trades is unimportant to the volume.
A period in which ten stocks swapped hands will have a volume of ten, regardless of whether the period featured rising or falling prices. A period in which 20 stocks swapped hands will have a volume of 20, regardless of whether the period featured rising or falling prices.
The trading volume is so important because it helps you interpret market movements:
High volume adds significance. When a period has a high volume, many traders backed the price movements of this period, which means that the market is likely to continue in the same direction. Low volume questions significance. When a period has a low volume, few traders backed the price movements of this period, which means that many traders will question the period's movements and likely invest in the opposite direction to profit from they consider a wrong movement.
As you can see from these examples, the volume only makes sense in relation to preceding periods. A volume of 300 says nothing until you know whether the preceding periods featured a higher, lower, or similar volume.
A volume strategy uses the volume of each period to create predictions about future price movements:
When a period has a high volume, a volume strategy predicts that the market will continue to move in the same direction. When a period has a low volume, a volume strategy predicts that the market will reverse. When a period has an average volume, a volume strategy will ignore it.
How To Execute A Volume Strategy.
To execute a volume strategy with IQ Option, follow these steps:
Look for significant periods . Look for gaps, periods with strong movements, or dojis (periods where opening and closing price are almost identical). Analyze the volume of these periods . If the trading volume was high during the period, predict that the market will continue to move in the same direction; if the trading volume was low, predict that the market will reverse; if the volume was average, ignore the period. Invest accordingly . Trade rising prices with high options, falling prices with low options, and stagnating prices with ladder options that predict little movement. Keep your expiries short with this strategy. Ideally, limit them to the next period. In a 30-minute price chart, you would use an expiry of 30 minutes, for example.
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Long-Term Strategy.
IQ Option are primarily short-term investments. But if you want to invest for the long term, IQ Option have a lot to offer for you, too.
How to trade a long-term strategy.
While IQ Option are mostly short-term investments with expiries of a few minutes to a few hours, most brokers have also started to offer long-term options that allow you to make predictions for the next months and the next year. These strategies are high/low options with a longer expiry. You predict whether the market will trade higher or lower than the current market price when your IQ Option expiries.
A long-term IQ Option strategy should be based on trends. Over the course of a year, long-term trends dominate the market and dictate what will happen next. Identify these trends, and predict that they will continue. To avoid weakening trends, you can use technical indicators such as the Money Flow Index (MFI), which allow you to identify trends that are running out of momentum.
Why Trading A Long-Term Strategy Can Be Profitable.
When you trade a long-term prediction with regular assets, you can average a profit of about 10 percent a year. That is a great result, but IQ Option can do better. Assume that you have found a stock of which you are almost completely sure that it will trade higher one year from now. Take a look at the current price charts of Google, Amazon, or Tesla. Such stocks would offer the ideal basis for such an investment.
When you predict that these stocks will rise with IQ Option, you can get a payout of about 75 to 90 percent - in one year. Regardless of how well these stocks do, when you buy them directly on the stock market, you will never make a profit that rivals this return.
Now, of course, you have to account for risk. When you lose your trade - however unlikely you think that this event may be - you lose all the money you invested. This is why it is a bad idea to invest all your money in a single trade. Spread your money over multiple stocks, currencies, markets, and commodities, and never invest more than 5 percent of your overall account balance in a single trade. Also, never invest all your money. With this strategy, you should still be able to make a return that is higher than what you would make with stocks, but you reduce your risk.
Straddle Strategy.
With digital options, the straddle strategy is easier and more profitable than with other types of financial assets.
Here's how you execute it...
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What Is A Straddle Strategy?
A straddle strategy follows a simple goal: it wants to make you money regardless of the direction in which the market moves. With conventional assets, this strategy was difficult to execute. Traders had to buy short and long assets at the same time and hope that the profit from the successful investment outweighs the losses from the unsuccessful one.
With stocks, for example, traders would be a stock and short it at the same time. They would then set up stop-losses for both trades.
If the market moves upwards, they would lose the short trade and hope that the long investment makes enough money to make up for these losses. If the market moves downwards, they would lose the long trade and hope that the short investment makes enough money to make up for these losses.
With conventional assets, this strategy was a mess. There were fees on every trade that complicated things, and it was impossible to make two investments simultaneously. The resulting time delay meant that a straddle was never perfect. Finally, the profit from the winning investment was often insufficient to outweigh the losses from the losing trade.
Luckily, IQ Option can simplify the straddle and make it more profitable.
How To Trade The Straddle Strategy.
Binaries have taken the straddle and packed it into one asset - boundary options. Instead of having to invest in two assets at the same time (which is impossible), boundary options allow you to create a straddle with a single click. Boundary options define a price channel around the current market price.
If the market leaves this price channel, you win your IQ Option; If the market fails to leave the price, you lose your IQ Option.
Both target prices of the price channel are equally far from the current market price, which means that you automatically create a perfect straddle. Many IQ Option brokers offer two types of boundary options:
One type of boundary options uses two nearby target prices and offers a payout of 70 to 75 percent. One type of boundary options uses two faraway target prices and offers a payout of up to 300 percent (or higher).
Choose the type of boundary IQ Option that you like best, and you can easily trade the straddle strategy with IQ Option.
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Robot Strategy.
To execute a IQ Option strategy well, you have to ban all emotions from your trading and do the same thing over and over again like a robot. Some traders took the next logical step and let a robot do all of their trading.
Here's how you execute a robot strategy.
What Is A Robot Strategy?
When you trade IQ Option, you have two basic choices:
1.You trade for yourself, 2.You let someone else trade for you.
A robot falls into the second category. Robots are computer programs. These computer programs are trained to execute a trading strategy and invest on behalf of a human trader.
In detail, robots do three things:
1.Robots monitor the market, 2.Robots find profitable trading opportunities, and 3.Robots invest in these opportunities.
When you use a robot, you outsource your entire trading process to a computer program. You can step away and literally make money while you sleep.
Why Use A Robot?
Robots have significant advantages compared to human traders:
1. Robots never miss an opportunity . Humans need sleep and have chores to do; robots do not. They can spend the entire day trading, which means that they can take advantage of every opportunity. With a profitable strategy, more trades mean more money, which is great for you.
2. Robots do not make mistakes . Humans get exhausted; robots do not. They can execute a strategy for years without making a single mistake.
3. Robots can monitor hundreds of assets simultaneously . Humans can only focus on one thing at a time; robots can focus on millions of things. This is why robots can monitor hundreds of assets. Monitoring more assets leads to more trades, and more trades, with a winning strategy, lead to more money.
Combined, these three advantages can make you a lot more money than if you traded for yourself. It does increase risk however. If a strategy starts to fail, a robot will not pause and allow time to make adjustments 0 it will continue making trades that fit the criteria. Performance must be manually checked too.
How Can I Get A Robot?
These 'bots' are generally provided as a service. Read about specific providers on our robots and auto trading page.
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