Auto-trading is very popular among binary options clients these days.
There are a few types of auto-trader:
- Algorithmic – the creators of the system have developed a computer program that picks where to place trades based on some pattern or system and that trade decision is automatically executed on your account
- Trader-Matching – the creators of the system have a single trader whose trades are matched in your account
The truth is that like binary options brokers themselves some auto-traders are good and some aren’t. But thinking critically, why would someone give away access to a computer program that prints the user money if it was profitable to keep to yourself? Seems like a good way to ruin a good thing, unless of course it’s not a good thing.
On the other hand, trader-matching systems do seem to have merit, as some people are better traders than others. Obviously thousands of hours of study and experience can help a great trader to overcome, and they might see the fees paid to them by other traders who follow along as an easy source of stable revenue. In addition, they would not be harming their own opportunities to execute trades as their trade would execute first.
We recommend you stay away from any auto-trading “system” that doesn’t include a real person making trades and being held accountable for their record.