Recently we have seen more and more traders turning to automated expert advisors and scripts for automating their binary options trading. If you are unfamiliar, an expert advisor is a program which allows for automation of the trading processes using technical analysis. What this means is that traders can define a set of rules which the automated system will follow and then take trades based upon it.
I am currently, and have been toying around with EA’s for the past few weeks with some interesting results. I do think there are many pluses that come with EA’s as well as some downsides, so let’s discuss them.
- You set the rules and it follows them exactly based upon them, which means if you have been breaking your rules this fixes the problem!
- No more babysitting trades, you can put the EA on a VPS (Virtual Private Server) and walk away while it trades your account.
- Money management can set so you can’t be greedy which we know kills a lot of traders accounts!
- Sometimes EA’s can go haywire if you do not have a very specific set of rules. Especially during news times and holidays they can potentially freak out if you are not watching them.
- It’s a bit challenging to learn to code them. (I am still trying to learn it myself!)
- There is no human intervention. If you see a trade that is likely absolutely going to lose and you wouldn’t take it, but know the rules match on the EA, it’s still going to take it.
- If the market changes it doesn’t adapt to the changing patterns.
With that said, I am planning on continuing my work with them and trying to find something that trades very frequently and hopefully very profitably. I know there are some others in the chat room at BOD and BOE who are also working on their own, so we should all collaborate on something neat!
At any rate, if you are interested you can learn more about them through the link below. I certainly believe they will be a lot of the future of binary options.