What are Trading Signals?
Trade signals for binary options is a tool that delivers a recommendation to trade on a specific binary option. It gives you the following information:
- Direction of the trade: CALL or PUT
- Asset to trade
- Standardized expiry rate
Traders can use this information to make investments, or can incorporate signals into their own technical analysis and trading strategies.
Who creates trading signals?
Trading signals are created using algorithmic trading models. These models constantly monitor more than 200 live assets and select the optimal assets for trading. They use the latest statistical and data mining technologies. There is very little human involvement in the data gathering process. All data is adjusted automatically by computers. The system is however periodically monitored by human experts, in order to increase long-term success ratio, and reduce traders’ risks.
How do I use trading signals?
There are currently 3 types of signals; 1 hour, 30 minute and 15 minute signals. The signals are displayed on your screen, allowing you a limited amount of time to evaluate the option and decide whether or not to invest.
What is the Reliability Level and how should I use it?
Every trading alert displays a color coded “power level” to indicate the likely reliability of the alert. Green denotes a high level of potential reliability, yellow shows less predictability. Statistically, traders can rely on “green signals” over a long period of time. This doesn’t mean that other signalts should be ignored. Less predictable options still present many potentially highly lucrative investment opportunities. Traders can benefit by placing an emphasis on fundamental analysis rather than technical analysis when evaluating these assets.
How often do I receive trading signals?
Signals are generally updated hourly on the widget. The exact frequency may depend on your account type.
During extreme or highly unusual market conditions, the algorithmic model may consider trading too risky. During these rare periods there may be substantially fewer signals, or even no signals at all. This is something that currently only occurs a few times a year.
Which assets are covered by trading signals?
The current version of trading signals supports more than 60 of the most liquid and highly traded global assets.
A typical email bulletin accompanying a set of signals will contain between 7-10 recommended assets. Usually those assets are the most liquid and are considered to have the highest chance of yielding a profit.
The recommended assets in every set of signals (email, widget or SMS) will vary according to how they are rated by the algorithmic models at that particular time.
Should I use trading signals?
Trading signals are not a magic online investment solution, but when used effectively they are a very powerful trading tool. Intelligent and systematic use of trading signals can definitely enhance your trading. Signals generated by algorithms do not reflect fundamental news and events. It’s prudent to diversify your trading.
What are the risks?
Any form of investment contains an inherent element of risk and binary options are no different. An inaccurate prediction will result in the loss of the sum of money invested in that particular trade. A thorough understanding of trading signals allows a higher degree of risk management when using the tool.
Tips for Signals
Trading signals are particularly effective under conditions of high market volatility.
If an alert bulletin shows 2-4 correlated assets moving in the same direction (e.g. USD/JPY – CALL, USD/CHF – CALL, USD/GBP – CALL), it’s an exceptionally strong indication of a firm trend.
Diversify your trading – trade on the assets with the highest reliability level, and confirm the lower reliability signals with fundamental analysis and market news.
Start trading by investing smaller amounts on low reliability signals. Reserve higher investments for highly reliable assets.