No loss binary options strategy managed account
As such, the concept of risk management is one that every binary options trader should take very seriously. It is not like forex where you can cut your losses early if you see that you are probably in a bad trade. So you need to be sure that you properly utilize the only means of controlling risk available to you.
Calculating your risk in binary options is actually very easy. So your first step is to identify and sign up with a broker that will allow you to place trades within the confines of your acceptable risk appetite. Binary options brokers have made this very easy, because the moment a trader pushes the button to purchase a contract, the trader is immediately shown the cost of purchasing that contract.
He cannot lose more than what he spent purchasing the binary options contract, so for every contract purchased, the amount at risk is known and the potential reward is also known. This enables the trader to do what is necessary in order to keep his risk within acceptable limits. In binary options, payouts are made up of your invested capital and your profit.
However, this is for a single trade. Good signal providers can win you around 70 percent of your trades, which is easily enough to make you money with binary options. Everything above that value, and you make money. Some signal providers are also trying to scam you. They provide random signals and hope that you stay with them for long enough to get at least some of your money. Luckily, you can recognise trustworthy signal providers by their money back guarantee.
All signal providers that honestly try to win you trades provide you with a chance to test their signals risk-free. Usually, this test comes in the form of a day money back guarantee where you can test the signals for two months, quit the service at any time, and get all your money back.
Never sign up with a signal provider that denies you this testing phase. Compared to a managed accounts, signals provide the advantage that you remain in full control of your account. You can recognise problems early and decide whether to trade every single signal.
The downside of signals is that you have to remain involved in the trading process. You have to be available and able to quickly react when you get a signal. Depending on your job and daily schedule, this might impossible. Robots take the idea of trading signals one step further. Just like signals, they monitor the market and search for profitable trading opportunities. The difference is that when a robot finds an opportunity, it automatically invests on your behalf. The ways in which robots create signals are similar to those of signal providers.
Some use automated computer programs; some use real-life traders. To automatically execute its signals, your robot needs a connection to your trading account. This means sharing your login information and access to your money with another company.
Some traders frown such a process and rather stay with signals, which is a legitimate decision. If you feel comfortable with a robot provider, however, you can also decide to take this step. The fact that your robot must connect to your account also limits the available combinations of robots and brokers. Some robots also use a list of recommended brokers that work best with the robot. More often than not, this list is a way of making the robot provider money.
The broker gets a commission when they deliver a customer to the broker, and they use this convenient place to suggest that there is some technical necessity why you should quit your current account and get a new one. Be careful of these types of robot provides. The advantage of robots is that you can completely outsource your trading process. That means you can minimise mistakes and leave the trading to the best professionals you can find.
In comparison to a managed account, robots provide the advantage of not being paid by your broker, thereby resolving the conflict of interest of an account manager who is employed by a broker that benefits when you lose money.
Your robot provider makes money when you make money and keep subscribing to their service — which is a much more customer friendly business model. The downside of robots is that you relinquish complete control of your account. While your robot will be unable to steal your money, it could trade badly enough for you to lose everything. Unless you regularly monitor your account and stop a bad robot before it ruins you, you take a high risk.
The third alternative to managed accounts is social trading. Social trading allows you to copy the trades of another trader just like you into your account.