Recently, the binary broker IQ Option introduced a new auto trading platform with robots. Traders can construct their own robots, or they can simply use one from the catalogue.
Once you open the catalogue, you will see the most profitable robots on top, and you can run the one you want.
IQ Option Robot is an innovative approach, and honestly, it’s a breath of fresh air as it’s been a long time since the industry has seen a major update. IQ Option engineers created the best auto trading platform so far, and we believe all traders will agree on that once they visit it.
This review is not supposed to be a tutorial on how to create a profitable robot using IQ Option’s platform, but rather an introduction to the software and a guide to the main features. We need to know whether this robot can be a useful tool or whether it is too risky for your own money.
IQ Option Robot Catalogue
In the catalogue, you can easily find the best robot when you check the list “Appropriate for my account”. You will also see a list “Most profitable robots” but keep in mind that these robots work with high accounts, so make sure that you can risk a big amount.
For each robot, you can see statistics that include the following:
- Total profit in the last 7 days
- Number of traders using the robot
- Amount invested by traders
- Creator’s profit up to 360 days
- Traders’ profit up to 360 days
The robot’s author might decide to add a description where he/she explains his/her strategy, but this is not necessary, and in most cases, you will not know what exact strategy the robot is following. You are not allowed to modify the parameters under which the software generates signals and open positions.
You can specify amount for trading and deal value, but you should know that if you don’t use the author’s recommendations, you won’t have the same results of profit, and sometimes these recommendations are really raised.
The problem is that most of the creators use martingale money management, and this strategy could easily blow your account. Thus, when you check on statistics, traders’ profit is usually negative.
You can test the robot with past data up to 30 days back using the author’s recommendations and see how the robot had performed for that period. Running the robot in demo mode is also possible, which makes everything extremely transparent.
IQ Option Robot Wizard
Basically, these robots allow you to automate your binary options trading in just a few steps, without the need to learn a programming language.
The wizard allows you to run your robot in just a few steps by choosing an already created strategy, such as Pin Bar, Piercing Pattern or Bollinger Bands. All strategies are predefined to follow indicator signals and money management. For example, if you select the Bollinger strategy, your robot will buy a Call option when the price returns in the bands from below.
If you select Piercing strategy, it will buy a Call option when the robot identifies possible reversal of a downtrend. You can watch explanation videos for all strategies, but unfortunately, there is not much information about the win rate, and in our experience, these strategies are set to use martingale money management.
Additionally, you can set profit-taking, limit-loss and number of consecutive unprofitable deals, which will help you to lower your risk.
The wizard also gives you the option to create your own strategy by combining indicators with candlestick-related signals. We will explain more about this feature in our next articles.
IQ Option Robot Constructor
The robot constructor will challenge your mind to create new robots that will work under the conditions you set. You won’t need to write a single line of code, but you will be able to define the parameters for opening a trade, and then, that trade will be opened automatically when all the conditions are met. It might sound easy, but it actually is hard work to create a profitable robot, and one should have a deep understanding of technical indicators.
If you decide to jump into the deep end, you need to prepare and focus on three main parts: indicators, strategies and tools.
You are basically using the “On Candle” block for a starting point since the robot will be using candles to generate signals and opening positions. Then, you drag and drop different types of blocks, and set connections between them to build your auto trading system.
In our example, we use a simple RSI robot. These are the basic steps to create the robot:
- Filter out candles for the period with Candlestick Filter
- Add RSI indicator and set period
- Use the Transform block to obtain the last RSI values
- Add Constant blocks to define overbought and oversold levels
- Add If blocks to check conditions for generating signals
- The Data Validation block will make sure all the conditions are met
- Add a Constant block to set the expiry time
- To generate Call and Put signals, use Create Signal
- Choose your money management strategy
- Add the final block Open Position
IQ Option Robot Profit
If you look at the robot catalog, then you may think this is a great money making machine. We could find robots with more than $10,000 profit in 7 days, or 1,328% profit, or 347% profit, which sounds great. However, when you take a closer look at the statistics, the situation is not so fruitful for the traders.
As we mentioned, these robots show big profits for their authors, but it isn’t the same for traders who use them. Traders’ statistics usually show negative numbers because the robot produces different results under different market conditions.
Furthermore, the big profits are displayed for the last 7 days, and when you test the robot for 30 days, it might show negative profits. At least, this is what we discovered when we were testing these money machines.
These robots are definitely an innovation for the binary options industry and remind us of Expert Advisors (EAs) in Forex. Lots of EAs are being sold, others are offered for free, but overall, they are a big part of Forex trading. It’s very possible we will see an increased usage of these IQ Option Robots, and in time, we’re likely to see more complex ones.
It is up to you to decide whether these robots are profitable, but from what we have seen, traders are mostly losing money when they use a robot from the catalogue. It could be a different story if you create the robot yourself and make it work under your strategy.
We see some great results for the authors, and this is easy to understand because, when you create the robot yourself, you know in what market conditions it will work best.