We have promised to write a review of Algobit, which is an automated system of signals from OptionBit binary options’ broker, for a long time already, but we had no time to do this. However, the end of a calendar month has come, so we tested the system and can draw conclusions. We will discuss this in our overview.
Algobit: overview of system
We have to give a proper respect to OptionBit because they were first to implement a robot in the binary options’ trading. Algobit looks really impressive because, in fact, it turns out to be a fully featured trading platform that has two modes: customary binary options’ trading and trading according signals.
As for the customary trading, no functional changes have taken place here, because, in fact, the Algobit platform replaced the custom Optiobit platform. This mode is called manual in the system. The benefits of a division into the modes are obvious: a trader can change trading methods without leaving the system. Scalpers and those who like the short-term deals will manage to save time thanks to such functionality. Therefore, they get more opportunities to conclude successful deals.
Algobit’s trading according to signals is much more interesting. Based on a working algorithm, a robot generates signals of the asset’s volatility increase and the new trend’s formation. Of course, calculation formulas are patented and not divulged, but this is not important because they work. We will discuss this in the next part of the article, whilst returning to the overview.
The robot generates signals for two types of deals: short-term and long-term. The short-term deal is a purchase of the binary options with the expiration time of 1-3-5 minutes. The long-term deal has 15-30 minutes expiration time. No matter what you are told on the different advertizing websites, in this case, as well as in the customary binary options’ trading, you have to remember one unalterable rule. You don’t have to be the trading genius to understand that the longer a term of a deal is, the more reliable signal the Algobit system sends.
The trading process according to the Algobit signals is not automatic. In other words, a trader himself makes a decision regarding a trading. Technically, this matter doesn’t is not very different to the standard platform. The system sets signal characteristics (asset and term of deal) by itself, and a trader sets the amount, as well as makes the decision (clicks buttons) regarding a deal. Signals are not compulsory. In other words, if a trader doesn’t agree with the system or wants to trade against a trend, he can change the initial characteristics easily without using the manual mode.
After the confirmation of a deal, a trader has to wait until an expiration time of an option comes. The back office of the Algobit signal system is equipped with the same tools as the custom Optionbit platform. An interactive tracking of the bought options occurs on the central panel (see picture). A trader can visually determine the option’s status at any time: green – in money (profit), red – out money (loss). An availability of the built-in online chat with the company’s analysts pleases in particular. A cashier is also available, and a trader can deposit an account or withdraw money without leaving the system.
The Algobit system provides another interesting tool, which is the sensitivity of a signal. The developers don’t divulge its operational principle too, but we understand its main point intuitively. The higher the system’s sensitivity is, the more signals it generates. The converse is also true. If sensitivity is high, the system will detect even the weakest trading signals, and it is dubiously well. We will discuss this matter in more detail further in the article
In conclusion of the overview, we would like to say that Optionbit has managed to develop the reasonably good tool which will fully replace the custom broker’s platform soon.
Algobit: reviews from professionals
The qualitative and the modern trading system – this is the review we want to leave after testing the Algobit. To be more detailed, it is necessary to consider the system in three perspectives:
Algobit: review of platform
This platform is functional and meets all of the trader’s requirements, as well as the opportunities which exist in the market currently. As already mentioned in the overview, the Algobit can replace the old Optionbit’s platform fully, and it is most likely to happen in the nearest future.
Algobit: review of design and interface
Of course, tastes differ, but we think that the new platform is vastly superior by its appearance to all of the currently existing platforms from the binary options’ brokers. A modern gaming design, dynamism, and an interactivity of the Algobit system deserve all possible praises. We think that all brokers’ platforms will look and operate the same way soon.
Algobit: review of signal system
We have to give a proper respect because it is the first trading adviser in the binary options’ field. For this reason, not all is so unambiguously here, as the different so-called partners like to mention on their websites. We have been testing the system for a month, and, unfortunately, statistics didn’t show the excess profits, which had been pledged to us. However, there was a rise, and it was fairly measurable in the professional trading terms. The positive (profitable) deals increased by 11 percent. Given the fact that we had to test even weak signals in the beginning, the practicable growth of profitableness equals to about 15-17 percent. This is not bad at all for the first trading adviser in the industry. However, in order to reach such results, a trader has to memorize several rules:
Firstly, the shorter a term of an option is, the weaker a signal is. The system simply fails to filter out all possible market noise. The 60-second trading won’t bring a profit even on the Algobit.
Secondly, it is the adjustment of a signal’s sensitivity. We have described this function earlier in our article. The signal’s sensitivity has to me minimal. The system has to determine strong signals only and not a market noise.
Thirdly, stay focused. A generation of signals occurs for all assets. Don’t start trading everything just because you have received a signal. We have repeatedly mentioned that the professional traders work with 1-3 assets.
Fourthly, the Algobit won’t supersede a trader. If you work with familiar assets, analyze the market primarily. It will help you to avoid false signals and increase a profit. Don’t neglect the classic analysis.
Reviews of Algobit from our team:
I heard about the system for the first time four months ago from developers, and I have been waiting for the Algobit’s appearance since then. The tool didn’t disappoint me because it is nicely, properly, and qualitatively designed. A trader regulates trading signals, and it is very convenient. I approve it.
Steve Gallagher, the consultant of options-stock-trading.com.
I oppose robots by definition. A machine can’t replace the analytical abilities of a human. The Algobit is a robot by a half, but I oppose it anyway. You can use it as an auxiliary too, but no more than that
Michael Stevenson, the expert in the technical analysis.
As far as I’m concerned, the developers have addressed several brokers with an offer to integrate the Algobit system into their platforms. The team of Optionbit was the first to respond, and this is their strategic victory. The future of the binary trading belongs to the Algobit and similar systems.
I agree with Oliver Williams. I’m not a clairvoyant, but I can confidently predict that all leading brokers will develop a similar product throughout the nearest year. However, I think that Michael dissembles because he was the one who had tested and stayed very pleased with the system.