We are preparing to start our first experiment of the BINARY OPTION ROBOT(tm).
Here is the first question we must decide before turning on the Robot: What settings will we select in our first run?
When you sign up for the BINARY OPTION ROBOT(tm), naturally you are going to be placed on their mailing list. Once a week, they send out an email with their recommended settings. Like clockwork, I receive these emails from them every Monday, signaling the first day of the trading week. Are these emails for real? Or were they sent by a Robot?
I have noticed that the message always says the same thing. I am curious with time to see if they ever change their trading advice. If it never changes, it means one of two things. (1) Either it means that the message is fully automated and is simply designed to encourage new users to start trading. If that’s the case, the validity of the advice might be hogwash. (2) The other option is that is is good advice, so it doesn’t need changing. You know the old saying, “If it ain’t broke, don’t fix it.”
Let’s look at a copy of one of these messages together. The details that I gather from this email will function as a guide into how I run the first test using the Robot.
The week-end is ended and the markets are now open!
You can now use Binary Option Robot and start trading automatically.
Our configuration advice for this week is trading 1 currency pair (Eur/usd) with a starting balance of 450$ using the Martingale system method with ALL indicators (without TREND) selected with 15 or 5 minutes expiration time.
I would like to point out several observation that I notice in the advice given in these recommendations. If you read my post How I Lost Money By Accident, then you know that I lost money when I was auto-trading on the basis of “trend” alone. That approach was no more effective than randomly pulling the handle on a slot machine. Notice that even in this email message, they admit that the “trend” indicator is not worth its salt. Since the email’s recommendation is blatantly honest on this point, maybe the rest of the advice is worth considering. Even if this email was sent to us by a Robot, it still may be a Robot that knows what its talking about.
The email recommends an expiration time frame of 15 or 5 minutes. Whether or not I follow this recommendation depends on what is available at the time that I trade. Unfortunately, as I am limited to only using Tradorax as a U.S. investor, the volume of available expiration times are not as available to me as European traders with more options. I may have to settle for one minute or 120 second trades. The availability seems to vary at different times of the day with Tradorax.
The email also mentions using the Martingale system. I will have to go into detail on a later post on exactly what that means. In a nutshell, it is a method that doubles your investment each time you lose with the hopes of winning back your losses. In practice, it can result in getting in over your head in a big way. Until my account balance reaches a substantial amount allowing me to take on more risk, I will not be using the Martingale system. Rather, I will stick with classic mode.
I do agree with the recommendation to stick with only one currency pair. I agree with their choice of Eur/USD, simply because this is the most popularly traded currency pair traded daily. When trading on indicators, volume is your friend. When begin using the Robot for trading, at least in the beginning, we will definitely be limiting to this pair.
The only thing left to decide is which indicators to include. I am subject to change my mind, but initially, I am most intrigued on running a test using both the RSI and MACD in combination. I may add the other indicators at a later time. These tend to be two of the more popular indicators, and should make trading move a little faster than limiting a trade by all indicators.
Will these two indicators be enough to reliably choose the right entry time for successful trades? Only time will tell. Subscribe to our YouTube channel so you can see our first trading video when it comes out.