How to spot a Signal Service scam?
The binary trading is flooded with several ancillary service providers that include automated software developers. The huge choices in the market make it very difficult for the traders to select the right partner.
Today, we will provide you some pointers which can be used to differentiate the bad ones from the market.
This is one of the most common techniques used by the scam artists wherein the real promoters or the developers of the robot hide behind the fake names and fake identity. Generally, they use the services of actors to showcase the effectiveness of their software. Also, they use a very famous name and inform visitors that they have been in the wall street for several years to grasp the knowledge of markets, in this way they hide behind a series of lies to weave a trap for you.
So, as an informed trader, you must conduct an online research about the promoters on the social media sites, and other platforms to assess the identity of the promoters.
Unprecedented success rate
This is an another technique deployed by the scam artists wherein these artists make extravagant claims about the software and claims to make you a millionaire in a month. Though this sounds very attractive and most of the traders fall for it, you should put such claims under lenses.
Exaggerated claims are used to lure the visitors, but actually, it may be a ploy by a scam artist to take all your hard earned money.
No mention of the principles
You would agree that there is no magic wand to provide successful trading signals. The services of the trading signal services must be based on some established principles. These principles are then converted through mathematical modeling to develop the algorithm to provide signal services. No mention of the principles behind the software development is one of the biggest indicators that it might be a scam.
Generally, the scam artist camouflages their principles behind the “Secret formula” tag. Such service providers should be scanned thoroughly, and if in any doubt, must be avoided.
Another technique used by the scam service provider is that they hide their associated brokerage houses. If a signal service provider is associated with an established player then we can trust them, but if the signal service provider is hiding the information regarding the associated brokers then it is a warning flag.
If the information about the affiliated brokerage services is hidden from the public eye, then you must start searching for another service provider.
Finally, it is very difficult to identify the bad ones from the abundance service providers, but the above are some of the pointers which can help you identify the bad ones easily.
Compelling Reasons to Join Option Robot
The rise of the binary market has also provided impetus to the ancillary services like Signals. There are several signal service providers in the market but there are few who stands out because of their consistent performance and robust customer support system. One such robot who is the front runner for the top slot is the Option Robot. The Option Robot system is designed to provide effective signals and has the most user-friendly interface for the customers.
There are several compelling reasons for using the signal services of the Option Robot and some of them are enlisted hereunder:
The main reason for selecting the Option Robot is that it is compatible with several reputed brokers. This means that the big guys in the binary arena trust the services provided by the Option Robot, and hence there is no reason why we should not. This also provides an array of brokerage choices for the customers. The list of the brokerage houses associated with the Option Robot is StockPair, BinaryTilt, Tropical Trade, amongst several others. Also, the list of associated brokers includes some of the licensed brokers giving a solid boost to their reputation.
Free to use
Even though the Option Robot utilizes the solid trading principles to generate signals and execute trades, the software is available at no extra cost. All you have to do is to enroll in your preferred broker through them to utilize their services. You can deposit the funds in the broker account through them and use automatic trading services absolutely at no cost.
Comprehensive Asset list
The robot works equally well with all the categories of assets, and hence you can trade in as many assets as provided by your preferred brokerage house. This makes it a unique proposition in the market, as many of its competitors work only on currency pairs.
Winning rate of 83%
The Option Robot algorithm is developed on the sound technical principles to provide accurate signals. The software claims a success ratio on an average of 83 percent, however, our testing suggests a winning ratio of over 70 percent almost all the time. This is one of the main reason why we have been recommending the Robot for quite some time.
Finally, it is clear from the above discussion that the Option Robot has some of the most compelling reasons to get selected as a preferred choice of signal service or automated trading.
Tips to Improve Signal Service Efficiency
Though the signal service providers try to provide consistent accuracy, there are some minor fine tuning which can be used to improve the efficacy of the signal services.
This is one of the biggest advice, as any upcoming event can increase the volatility of an underlying and makes it impossible for the signal service to predict the movement, which might increase the inaccuracy of the service providers. Hence, it is best to avoid an underlying which is expected to be affected because of some upcoming event or a report.
Do not trade in the dead zone
There are basically three defined trends in the market: uptrend, downtrend, and a neutral trend. The neutral zone is the ones which are considered as the dead zone, as the movement of an asset which us undergoing through such trend is unpredictable. Generally, the upward and the downward trends can easily be identified by the signal service providers and hence it is best to avoid trading in the dead zone with the signal service providers.
Do not trade highly volatile assets
Highly volatile underlying fluctuate heavily even with the slightest of market movement. This makes it difficult for the traders to effectively gauge the movement, and hence one should avoid such assets and invest into lower volatility assets with the automated software.
Do not overinvest
This is perhaps the biggest mistake made by the naïve traders, who has got attracted to binary broking because his or her friend has made handsome profits in it. They overinvest in a single trade, and if god forbids the outcome of the trade is unfavorable than he ends making huge losses. We recommend our readers who are just starting out with the binary trading through automated software should only invest a maximum of 5 percent of the total account balance in a single trade.
You don’t need to make 100s of trade every day to become a successful trader in a long-run. The binary options trading is like a business and should be considered for the long term. Avoid overtrading as one wrong trade in an overtrading environment can lead to multiple wrong trades and huge losses by the end of the day. The average number of trades per day should be limited to 5. This will give you sufficient time and energy to effectively strategize and predict the movement on an underlying.
Finally, there is no full proof method to have 100 percent accuracy in the binary trading market, but above are some of the techniques which can be deployed in an everyday trading while trading with the automated software to make it as accurate as possible. By following the above-mentioned tips, you less likely to make mistakes and hence it will improve your overall profitability over a period of time.