Update (January 31, 2017): BinaBot is no longer available! For alternatives, please visit our Binary Options Signals page.
Being a relatively experienced binary option trader, I’ve encountered just about everything the industry has ever come up with at this point. Nothing really surprises me, and very few things impress me. At first glance, BinaBot didn’t really impress me either. But I took a closer look at their operation and they managed to arouse my interest enough for me to open an account and to make an actual deposit with them.
The first thing that caught my eye at BinaBot.net was the fact that they didn’t try to dazzle me with promises of X thousand dollars per week. All they promised were profits, and I think that’s fair enough. The second factor – the one that proved instrumental in prompting me to make the move – was the fact that the BinaBot software is apparently based on mining social network data.
This BinaBot review will not only give you a comprehensive overview of this software, but most importantly it will present my own results.
BinaBot is a second-generation binary option auto-trader, developed by financial expert Troy Everett. Every auto-trader consists of a module which gathers and analyzes data from a given source, another module which makes heads and tails of the said data, generating trading signals, and a third module, which does the actual trading, based on these signals and manages the money of the trader.
According to Everett’s explanations, for BinaBot, the source of analyzed data is social media. Using a number of unspecified algorithms, the software probes and analyzes social media trends and noise, drawing conclusions regarding what people think, what they communicate to their peers and what they intend to do. This data is then translated to make sense trading-wise. This is the heart and soul of BinaBot and its unique sales pitch as well. From a logical perspective, it certainly does make sense.
Despite the fact that its promotional setup isn’t necessarily trust-inspiring, BinaBot seems to work. Its more recent version works a bit better even than the previous one, which was fully automated.
Who is Troy Everett?
Troy Everett is apparently a financial expert, who used to work for some of the most high-profile financial institutions in the UK. Being the expert that he is, Troy Everett says he worked on developing trading software for big market players, a task which he successfully accomplished and got rewarded for. The reason why he is now peddling his BinaBot auto-trader personally is that apparently, one of the companies he worked for, sold out his code, thus compromising the effort and his confidentiality agreement. Everett says that BinaBot represents a definitive step up from it, featuring higher success-rates on trades, past the 85% mark. I too had heard about Troy Everett before my BinaBot foray, so that was a bit of a factor too in my decision to take the system for a test-spin.
How does BinaBot work?
The Internet sees an unfathomable amount of financial information roll back and forth around the clock, without a lull or a break. It is this flow that Troy Everett’s trading bot taps into, to locate usable bits of data regarding trades that are likely to generate income. Exactly how it accomplishes this feat is unclear, as it is the unsettling “secret” factor of the package. I personally like to know exactly what goes on behind the scenes so I can draw my own conclusions, but in BinaBot’s case this is impossible. One has to take Troy Everett’s word for it.
Unlike some of the auto trading scams out there, BinaBot isn’t based on some kind of far-fetched technology. Instead, it allegedly works by scanning social media and the Internet in general, to get a sort of “feel” for trading opportunities. It then provides those opportunities to you, the experienced trader, as trading tips.
Your job then is to verify the suggested signals by looking at the charts and conducting fundamental analysis. I’d like to remind you how important it is to become an expert in not more than a couple of assets so that you can really gain a thorough understanding of the fundamentals involved. To make a long story short, while there is no way to actually verify what sort of variables BinaBot analyzes for its trading, what is certain is that it works and that it is capable of generating profits.
Like every auto-trader, BinaBot is apparently made up of several modules. One of these modules – perhaps the most important one – is the one doing the data collection and the analysis based on this data. The other one is the trading signal generating module. The third module is the one that launches actual trades, based on the above said trading signals.
Why would one want to use a software in this semi-automatic mode? Simple. As said above, this way, there’s a great deal of control exercised by the trader. That means that one will essentially make his/her own decisions and take credit for all the resulting wins/losses. Many simply do not trust auto traders, and indeed, in times of increased variance, it is a reasonable move to just turn them off. By using BinaBot in manual mode, traders will make sure only the trading signals they personally like, will be acted upon. You can also use the signals with your favorite brokers, and not just with the automatically-assigned brokers. You could even try the signals on a FREE binary options demo account.
Those using the manual trading feature should also remember though that timing is extremely important. Exactly when one decides to make a move on a trading signal is just as important as what one trades and in which direction.
What Does the Community Say About BinaBot?
The community feedback regarding BinaBot is nothing short of superb. There are scores of videos posted on YouTube, with traders showing off their results, using the software. Some of these video reviews were made by the representatives of some of the most prestigious and best-trusted binary option portals. Keep in mind though that most of the demonstrations you will find are of the older, fully automated version. The problem with trading on autopilot is that brokers don’t like it. At first they just manipulated results. Now they have simply blocked auto trading completely, which is why the many auto traders recently became mere signal services. If you come across a software that offers trading on 100% autopilot, know that it’s most likely a scam.
Despite a nearly universal agreement regarding the legitimacy of the software, there have been complaints about BinaBot too. Most of these complaints were about the auto trading mode, which performed less than satisfactory for some people, while other people found it impossible to use it at all. With that in mind, it is safe to conclude that BinaBot is at its best when used in semi-auto mode, as a signal service.
Those who have managed to get the auto trader going were mostly happy with its performance though. For one reviewer, the auto trader simply refused to take any trades for weeks. When it finally got going, it did pick some good signals though and it did end up winning trades, even though it didn’t exactly stick to the settings of the user. For instance, it took only three trades for a whole day, and even though the “Risk” setting was on high – which means it should’ve taken ~20 minute trades- it stuck to trades with one-hour expiry.
BinaBot Success Rates
In order to be profitable, an auto trader like BinaBot has to be able to produce some pretty impressive ITM rates. In this case, we’re looking at an advertised success-rate of 85-90%, although according to most traders, the actual success rate produced by the auto trader is closer to 80% (if we ignore instances of broker manipulations.) That doesn’t mean of course that there aren’t ways to further increase this already impressive percentage. Skilled traders can use the manual trading feature to overcome some of the problems of the auto trader and to produce better results.
BinaBot comes with all the features one may expect from a last-generation auto trader. Its trading interface is clear and rather on the simplistic side. However, it has all the bells and whistles one may need for proper trading as well as for proper analysis (signal-confirmation).
The BinaBot software is web-based, so everyone can access it from anywhere, and yes, it is compatible with most mobile devices too. The trading interface offers users quick access to an economic calendar (meant to lend a hand with the fundamentals) The investment amount can be tinkered with, as well. The smallest possible investment amount is $25, and given that the minimum deposit at the brokers who work with BinaBot is $250, that is quite reasonable indeed. It is certainly recommended that traders stick with $25 investments, until they can get a more bulky balance going.
We then have the manual trading section, where all the trading signals are listed, and a charting section, where a graphic evolution of the price of the chosen underlying asset can be viewed. The Trade History section is where one’s past trades are listed, for analysis, and possibly for bragging purposes too.
BinaBot Review Conclusion
BinaBot is a more than decent trading software, but it has to be pointed out that despite some impressive results produced by its auto trading module, its true strength is in signal-generation and manual trading. In the manual trading mode, those who know their game, can indeed perform extremely well. While this is a much more hands-on approach, it actually allows traders to apply a number of different strategies, and to personally influence the outcome of their trades.
One strategy that seems to be working well in manual trading mode is the one based on two moving average lines (365 and 180), combined with the Bollinger lines. In order to employ such strategies, one will obviously need some advanced charting software, like MT4. These technical analysis strategies are always about spotting a candle pattern where the other indicators used point to a price-action reversal. If the signal resulting from the chart confirms the signal generated by the BinaBot platform, we can place the recommended trade, with the expiry set to approximate the Trend Ending displayed next to the trading signal in the BinaBot interface.
Another “strategy” used for BinaBot signal verification makes use of the MACD and the MACD Histogram indicators. This strategy requires the MACD Histogram to be on 0, while the two lines of the MACD cross at a sharp angle, heralding an upcoming downward reversal, and thus calling for a PUT trade.
You can find many other winning strategies in our Binary Options Education section.
To sum up, if you’re looking for a semi-automated binary options software that works, by all means, get a free account with BinaBot today!
Remember, we do not recommend using auto traders that trade on 100% autopilot, unless you are ready to lose your money. If you’re an experienced trader who is looking for a new source of signals to work with, BinaBot would be a great choice, otherwise stick with manual signals.