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All You Need To Know About Signals & Autotrading
Alex

LEVEL 10 : SENIOR

REVIEWS 9 | REPLIES 84

#2804

Alex

October 22, 2015 at 3:01 pm

Autotrading and Trading Signals has become a huge part of the Binary Options industry. Before you rush in to use these services you first need to understand what they are and how they work. Some Autotraders and Signal Providers are just there to scam you while others can legitimately help you out.

What Are Signal Services And Autotraders?

A Signal Service will alert the trader with a potential trading setup. He or she can then decide whether or not they want to take the signal. These signals are generated by other traders or a trading robot and will usually be communicated through email, live chat, Skype, SMS or a Tweet. Autotraders is a software program that will automatically place trades for you based on the trading signals they generate. Aren’t these two services basically the same? No. Many Autotraders use Signal Services, but not all Signal Services are Autotraders. Make sure you know what you are looking for before you start browsing around.

What Types Of Forex Signals Do You Get?

1.Free trading signals

2.Paid trading signals provided by one provider

3.Paid trading signals provided by multiple systems or signal sources

4.Trading signals supplied by trading software that you have to download onto your computer. This type of software is better known as an EA (Expert Advisor)

Example of a Typical Binary Options Signal

Asset: GBP/USD = 1.5467

The trade: Call Trade

Expiry time: 15 minutes

When: market reaches 1.5400

How To Use An Autotrader

  1. Sign up with an Autotrading service.
  2. You will have to download a program or an extension on your browser. Make sure that the service is compatible with your broker and/or browser.
  3. Log in to your binary options trading account through the program or browser extension.
  4. Choose your amount that you wish to risk per trade. Some programs will ask for an exact amount, and some will ask you for a percentage of your account which you want to risk.
  5. That’s it! Sit back, relax and watch the trades come in.

What Does Autotraders And Signals Cost?

The cost will depend on the service you sign up for. There are different pricing models which these kinds of services use, namely:

  • Monthly fees
  • Annual fees
  • Lifetime fee
  • Cost per trading signal
  • Different costs according to your account and trading size
  • Free

Most services tend to charge on a monthly basis ranging anything from $30 – $200. You could get some discount when you sign up for a year. Lifetime fees can be rather expensive but also worth it in the long run. Services that charge you per trading signal are an awesome way to keep the cost down if you are only looking to take a few trades per month.

Some Autotraders will charge you a monthly fee based on the size of your account and the amount that you risk per trade. For instance, if you have a $1000 account they will charge you $100 per month but if you have a $10 000 account they might charge you $500 per month.

Last, but not least, you can choose to go with a free trading service. You might wonder why anybody would want to give away signals for free. Well, there is actually a legitimate reason for this. These Autotraders or Signal Services will normally be an affiliate with their recommended brokers. In order to get your “free” service, you will need to sign up with one of their affiliated brokers and deposit the minimum amount. They will then get paid by the broker because they referred you as a customer. So in reality, the service is free for you but they still get paid at the end of the day.

What Autotraders and Signal Services CANNOT Do For You

  • It cannot take the risk out of trading
  • Guarantee that you will be profitable
  • Guarantee x-amount of dollars every hour / day / week / year
  • Become a millionaire overnight

What Autotraders and Signal Services CAN Do For You

  • Signals can alert you to possible trading opportunities. You might have missed it, or you were busy doing other stuff.
  • Autotraders takes trades for you when you can’t be at the computer. This is great when you don’t get much time to trade during the day, or maybe some of the best trading opportunities appear when you are sleeping.
  • Autotraders and Signal Services are perfect when you want to free up hours during your day. You might be tired of staring at the charts for hours on end or just want to free up some time to do other things.
  • These services give you the ability to build up your trading capital while you are still learning how to trade.

What to Do BEFORE Signing Up With a Signal Service or Autotrader

  • Thoroughly go through the terms and conditions of the service and make sure you understand them.
  • Try the service for free if you can before you sign up. Most Autotraders and Signal providers will have a free trial period. Make sure that you use this to your advantage. Even if you have tried them before, I guess an extra week or month for free won’t do any harm. During your trial phase, it is a good idea to use a demo account to see if they are any good. Some of the services will not work on a demo account, so you are going to have to trade with the minimum trade size in this case.
  • Always look around for the service past performance. If you can’t find it, then go ahead and ask them directly. This will be a good indication of what you can expect when you sign up with them. However, it is not guaranteed that these results will be the same in the future.
  • Be wary of Autotraders and Signal Providers who claim to have unrealistic trading results. Remember, if it’s too good to be true, it probably is.
  • Find out how the trading signals are generated. Is it a trading robot or an actual trader that is doing the analysis?
  • Avoid services that are affiliated with untrusted brokers. Do your research to find out whether the broker is legit or not.
  • Look at customer testimonials. Look for services with fair and believable customer reviews. When looking at these testimonials, you should not only look at the quality of the signals but also the quality of the customer service.
  • Make sure you understand exactly what the trading signal means. You should fully understand how to use an Auto trader’s software. Know what you can control, how you can change different settings and how to turn the Autotrader on or to switch it off.
  • A crucial thing to know is how you can discontinue your account if you see things aren’t working out for you.
  • DO NOT only rely on Signal Services or Autotraders. You can still trade on your own when you get time, or you can practice and study in the meantime to become a better trader yourself.

Binary Options Signal Services and Autotraders can be of great help for many traders. If you follow the steps, we mentioned you should be able to find a legitimate service. Have a look at our Autotraders Reviews and Signals Reviews section as a start.

Before I end the article, there is something I would like to mention. Recently, Social Trading has become very popular amongst the Binary Options community. Social trading networks have basically replaced the ordinary trading signals and Autotraders. Social trading networks is an incredibly innovative way to copy traders if you think about how Social networks such as Facebook have grown over the last few years. If you have not heard of it before, let me sum it for you. Social trading consists of a network of traders that share their performance on a website. Either you can choose to follow them, or you can choose to copy their trades automatically to your trading account. According to our Reviews section, the most popular one at the moment is Trade4me. Have a look and see what you think.

Carrol Fluke

LEVEL 1 : NEWBIE

REVIEWS 6 | REPLIES 3

#2863

carrolfluke

November 1, 2015 at 3:10 pm

Signal services and autotraders are great, IF you find the right one. This is normally a difficult task for most traders. You have to go through a lot of poor services or scams to finally find one that is worth it… at least that is what I found.

I have only used a signal service in the past, but I must say that autotraders seem to be much better. The problem with signal services is that they have first have to send you the signal and by that time it might be too late for you to get in on the price that they said you must enter. Sometimes they will give you a signal well in advance and then you have to be at the computer the whole time until the market reaches that price on the chart before you can take a trade. In some cases you will wait the entire day and the market will never reach the price they quoted in their signal. This really sucks when it happens because you basically wasted your whole day waiting for a trade that never happened.

Now autotraders on the other hand eliminated these problems all together. The cool thing is that you don’t have to sit in front of the computer to wait for a signal to come through or wait for the market to reach the price they quoted to take the trade. The other neat thing is that all the customers of the autotrader will be entered at the same (more or less the same) market price. This is a big plus point. Your results should look the same as the autotrader’s results if you took every single trade.

I have recently looked at Trade4me social trading network. There seems to be some really good providers on there according to their trading results. Who knows, I might give it a try in the near future..

Armand Kolbe

LEVEL 1 : NEWBIE

REVIEWS 7 | REPLIES 2

#2951

Armand

November 15, 2015 at 11:53 am

LOL funny story… Speaking of signal services.

When I started trading I followed this one “trading guru”. He gave out signals on a daily basis. He advertised a 73% winning percentage if I remember correctly. So after week 1 I made a few bucks. Week 2 I lost a large sum of my account. I calculated his win percentage and it was 38%. I asked him what was going on, you claimed to have a 73% win percentage… The guy told me, sir don’t stress I just had a bad week. My winning percentage is for the entire month. Anyway as the month went on he continued to lose and lose. At the end of the month his winning percentage was down to 29%!! It was absolutely ridiculous. He told everybody on the group that it was a bad month. Many members replied that his win percentage was like that for the last few weeks.

Suddenly a light bulb moment went off. What if I took the opposite trades if what he says? My chances would be much better this way than following his signals. So I deposited a little more into my account and gave it a go. The first week… BAM his win percentage was below 30%. Guess what? I was making money while all the people in the group were busy losing. This was horrible and awesome at the same time. As the month came to an end, his win percentage was again below 30%. I was smiling all the way. I thought I could go on like this forever! Unfortunately, he decided to cancel the service as most of the people were fed up with his bad signals and left him.

Be warned – don’t try this at home hehe. Cheers guys

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