Auto Trading Software: Pros and Cons
The development of auto trading software products was conceived to help online binary option traders conduct business more conveniently. Despite its noble and customer focused purpose, auto trading software products are still met with many pros and cons. These are enumerated in the sections of paragraphs below.
Gains versus Risk
The primary premise of Binary trading is built on the possibility of winning big or losing everything that you have put in to invest. It is due to this very premise that the contrasting mix of luck and risk is made. The gains in Binary trading using an auto trading software can triple the amount of cash you have initially laid on the table. Equally, the risks of losing everything and not gaining anything at all linger on all sides of the game. Selecting an auto trading software product must be thought carefully to avoid significant losses.
Skill versus Automation
The chances of you becoming a successful binary trader heavily rely on your skills and your ability to make sound decisions under pressure. Trading skills are a product of long years and hours spent learning the trade and evaluating outcomes with consideration to the factors that influenced them. Some people simply do not have time to learn all of that so they chose to automate the process by employing the help of an auto trading software. Now this can be an advantage and a disadvantage depending on which is much more accurate: your skills or the automated algorithm of the software you are using.
Free versus Incurred Costs
Auto trading software take time to develop. The amount of work that it does learning from previous trading outcomes, analyzing trends, drawing analysis, predicting figures and eventually making a decision on your behalf requires a carefully designed software that will cater to all of this with accuracy. This means that heavy investments on the engineering aspect which in turn translates to costs incurred in the development stage. One disadvantage of using an auto trading software is that you have to purchase the full version to fully use it.
Reliability Versus Doubt
Most traders chose to use or employ the help of an auto trading software because of their accuracy in selecting which options to trade on or to invest on. The accuracy is measured on how close the outcome is to the predicted outcome of the robot. A good margin should be within 80% to 90%. Anything lower is not worth it and anything higher is very suspicious and should prompt you to countercheck the developer for possible scams that you might be liable with as a primary user. The ability of the software to accurately make predictions and base the decision to trade or not on this is the core function of a binary option software.
Every new discovery or innovation will always be faced with the controversy of whether or not it brings something good or bad. For Auto trading software products, the final say is still in your hands.