How to use OptionBot
A few month ago I reviewed a product called Option Bot. I’m a huge fan of the software, but I don’t feel that the creators did enough to explain how to use it properly. I also find the support hit and miss, sometimes they get back to me very quickly, but sometimes they close my support tickets without replying, although someone there did explain that they don’t reply to questions about systems or strategies as they “encourage” the users to find their own settings, so I did just that.
In fact, one of the first things that I did was try to understand their method on the homepage video. This is made slightly confusing since the video shows 3 pips being displayed as 0.030 and they have now changed this to just say “3 PIPS” a move that they say they did to avoid confusion. I’m not quite convinced that they succeeded in avoiding confusion, but I do know that their software is actually very good, and I fully intend on emailing them this blog post once I’ve written it, as hopefully they will include this key ingredient in to their main strategy.
SO HERE GOES….
If you want to know how to use option bot like me, then simply watch the video above, this is a video of me testing 3 binary bots that are all available at the moment, and you’ll see quite clearly that option bot is the only genuine one out there.
Firstly, when you launch the OptionBot software for the first time, you absolutely must open an account with a broker from within the software, and there is a very good reason for this, the software can pull the data feed from the platform you are trading at, but only if you are optionbots customer. It’s a deal that the creators must have struck with the binary platforms, but I’ve traded on platforms that I’ve opened both in and out of the software and I found my success rate significantly higher on the platforms that I opened within the application.
My success rate was in the region of 72% on Banc De Binary who I already had an account with, but when I opened an account within the application with Trader XP I immediately noticed 2 things.
One was that I was getting way more signals than I’d been getting before, the whole column on the left of the screen had filled up in less than 30 minutes.
The other thing I noticed was that I was winning more trades, now about 80% of trades were successful. I emailed support about this, and they explained that option bot has their own premium data feed, but that it connects to the platforms feeds to verify that the feed data matches. This allows the triggers of M15, M5, M1, M30 and H1 to be accurate. Without the second feed is can only analyze 6 of the 15 pairs at anyone time, so the signals aren’t as frequent.
I did ask support why they didn’t make this clear, and they simply said that they advise all customers to open accounts within the software, and that they didn’t want to bring up technical points about the software that don’t concern the customers…. hmmm… as I said before I love the software, but I’m not sure about their customer skills.
Anyway, now that I was armed with new option bot information, I started to do a bit of research about the behaviour of certain currencies, as I noticed that I was getting an increasingly frequent number of JPY, ZAR, RUB and TRY pairs being alerted to me. These were also the currency pairs that I tended to lose on.
In my research I discovered that these are deemed volatile currencies, ZAR, TRY and RUB because of their economies are struggling at the moment, and JPY because their economy is very strong over the rest of the world. Resulting in frequent movements in excess of 3pips throughout the trading day.
Further to this, I found that the more popular currencies people tend to successfully trade on are the more predictable ones, like the Euro, The British Pound, US Dollars, Swiss Franc etc.
So the first thing I did to improve my trading out comes on option bot was ditch the the 4 big movers, ZAR, TRY, RUB and JPY.
The second thing I did was take advantage of the charts that option bot have on their application, whilst they tell you what the chart is there for, they don’t tell you how to use it.
What I now do, and what I demonstrate in the how to use option bot video above, is when I get an advice I always check to see how that pair has performed in the proceeding hours. If there is a downward or upward trend that is going in the same direction that option bot has advised, then I will place a trade in the opposite direction, just like option bot tell you to.
But, if the trend is in the opposite direction to what option bot is telling me, I will wait until it’s position reverses and only then will I place my trade.
If the chart seems to be quite flat, or neutral then I will not place a trade at all, I will ignore that currency advice.
This is almost everything you need to know to place more winning trades with option bot, but there is one final piece of information that you should have.
Trade with as little time left until the expiry as possible! As you’ll see in the video, I place trades when there is around 2 minutes left before I can no longer place a trade. I very seldom lose a trade within this narrow window of opportunity, and I never purposely place a trade that has an expiry over 30 minutes away.
So to summarise the following market conditions on setting M15 and 3 pips on Option Bot are:-
- Ignore ZAR/RUB/JPY and TRY
- Check the chart
- The closer the expiry the better
Since doing this I am winning far more trades that I was in the beginning. Well over 90% of trades, and I sincerely hope the people at option bot take notice of my blog today and perhaps include this information on their site as they have a great product.
But it wouldn’t have killed the guys at option bot to have simply made it a little clearer to people using the software that it doesn’t hurt to check the variables manually.
My closing thought on the software, is that it’s got all the basics for a great bit of kit, but I’d like to be able to choose which currency pairs I want to advice from, and in the future I’d like to be able to customise individual pairs to get even more great results.
If anyone else has another strategies they want to share on my site, please feel free to use the comments box below. I’d love to hear how other optionbotters are doing.