Why Choose OptionRobot?
- Free Demo Account
- Specialist for Currency Trading
- Numerous Integrated Brokers
Released in March 2016, OptionRobot is an automated trading program that’s quickly become very popular with binary traders. It’s worth noting right away that this robot specialises in currency trading. All popular currency pairs are supported, but it does not, and will not provide traders with access to trading any other asset classes. OptionRobot also had a few US-friendly partners integrated, but this is likely to change due the the regulatory status of these brokers. This information is accurate at the time of writing this review (November 2016). We will update/amend this review if this changes.
This focus on currency trading is largely due to the way the algorithm that powers this robot is setup. We found that the robots we review, including this one, works well for traders of all levels. However, the trading strategies/settings at OptionRobot would truly benefit traders with some experience in technical analysis (see section about platform settings below). If the term MACD conjures up a vision of an American fast food chain, or if you wish to trade non-currency assets, you may be happier with binaryoptionsrobot.com.
Uniquely for a Robot, OptionRobot offers a Free Demo Accounts to all traders. This can be manually enabled via the dashboard when you sign up, and unlocks $1,000 in virtual funds (funds will be in USD/GBP/EUR as per the currency of your account). This feature can be used to test the robot prior to making a real money investment.
How to Trade with OptionRobot
Step One: Create an Account/Login
As with all robots and brokers that we review, trading accounts can be opened for free by clicking the “Trade Now” button above (or at the bottom of this review). This will take you through to the OptionRobot homepage. Once here, click the “OPEN FREE ACCOUNT” button and register.
You can select a broker during registration, but don’t worry if you’re undecided. You can select an alternative broker from the robot’s user dashboard later on. You will now be logged into the robot’s dashboard where you can either select a demo account or make a deposit to turn your account into a real-money trading account.
TradersAsset Tip: Trading Robots aren’t licensed to handle payments as they are a program and not a broker. OptionRobot will redirect you to a partner broker’s banking pages where all payments and identity verification will take place.
Step Two: Select A Broker
As stated above, your OptionRobot account will be connected to the broker selected during the registration process. If you wish to choose an alternative, select the “Brokers” option on the left of the dashboard and you will be presented with a list of all integrated brokers. If you are happy with your choice of broker, go to Step Three.
Step Three: Setup and Trade with OptionRobot
We noticed a few “bad” reviews for OptionRobot when conducting research for this review. The main concerns were: 1) The OptionRobot only trades currencies, 2) Traders suffered losses and complained that the robot was rigged. Firstly, this robot specialises in currency trading, which negates point one. As for the second point; time after time, we notice these negative comments are due to trader-error. By that, we mean; the single biggest mistake a trader can make when using a robot is ignoring setting it up correctly. This is closely followed by the second mistake; not incorporating a money-management strategy when trading.
Using a Robot is NOT a shortcut to profit. Like many technical indicators, a robot is merely a trading algorithm, or a “tool”, (albeit one that when set up and used correctly, can lead to considerable profits). With this in mind, I urge you to consider the importance of setting up your robot. This is rather straightforward here as you can use the “Settings” functionality on the left of the OptionRobot dashboard.
This robot can be setup to trade the contract time frame chosen by the trader. Expiry times between 60 seconds and one hour can be chosen, as long as the connected binary broker supports this. Similarly, this section can determine the amount to be invested in each trade and the robot can trade with a minimum and maximum investment amount of $5 and $500 respectively. The robot can also be instructed to make a single trade at a time but can also make up to eight trades simultaneously.
The most important difference between OptionRobot and BinaryOptionsRobot is the approach towards analysis and trading. OptionRobot has six technical indicators (Trend, MACD, CCI, RSI, Stochastic, and William%R) listed for a trader to choose. At least one indicator should also be selected as the signals generated by this will be used by the algorithm (Robot) to place the order in the connected binary brokers’ platform. Therefore a clear idea about the function of at least one of these indicators is crucial.
After selecting one or more indicators, a trader can select one of the three trading methods used by the robot:
- Classic: the robot would buy or sell as per the signal from the chosen indicator. For example, the robot may buy a call option when the RSI indicator reading is 30 or lower. Likewise, the robot may buy a put option when the RSI indicator reading is 70 or higher.
- Martingale: the system involves doubling the investment amount after every loss. The trade is taken in the same direction till success is achieved. Naturally, the investment amount should be at least $1000 to opt for such a system.
- Fibonacci: it is based on the Fibonacci lines which act as support and resistance levels. A put option is bought when the price of an asset reaches the Fibonacci resistance level and vice-versa.
All indicators are lagging indicators, which means that these indicators follow the price. Thus, it is not uncommon to see erroneous signals. Therefore, sufficient knowledge is required to decide the indicator and trading system.
Once setup correctly, simply go back to the Dashboard and activate the robot by turning the “Auto-Trading” switch to the “ON” position. It took me moments to profit with the robot, and as stated above, I attribute this to the time spent setting it up.
Please Note – this robot was tested in demo-mode with demo funds
The support team at OptionRobot is highly active via Livechat. There were no delays in response times and the information provided for a variety of queries was relevant and useful.
There is no telephone support provided for this product, however, a support email address is provided on the main website. If you do require support via email, the contact form located within the dashboard options is better for response times. Simply register an account for free to gain access to this feature.
The OptionRobot is offered in 15 languages including English, Italian, German, Spanish, Russian, Swedish and Chinese. In addition to these, the brokers integrated to the binary trading robot can provide support in a total of 26 languages.
Why Trade with OptionRobot
When reviewing binary options trading robots, there were a number of choices out there. We were disappointed to find that many of these were truly appalling in terms of their user interface, setup and worse – their results.
This is where OptionRobot stood out. We found a number of great reviews for this robot, so we signed up and began testing. We found it refreshing to find a robot that was “authentic” in terms of its setup. By this, we meant the availability of technical indicators and popular trading methods. The straightforward setup process also allowed us to choose short term expiries, low investment amounts (part of our risk management strategy), and the number of trades to be places (up to 8 simultaneous trades can be placed with OptionRobot).
As of now, OptionRobot trades only in currency pairs. However, a trader can choose the specific currency pair the robot will trade. We made it a point to push it’s limits and found that the OptionRobot can yield wonderful results if the trader has a bit of knowledge about technical analysis. The inclusion of a mobile app and the site’s mobile-friendly build is handy for monitoring progress on-the-go, and the combination of OptionRobot and connected broker’s support teams ensure that all issues are dealt with swiftly. It was our pleasure to award this robot with a four star rating and encourage currency focused binary traders to give them a try.