Generating reliable and relevant trading signals is undoubtedly difficult and requires time to develop. In this article, we will cover how to effectively generate the “best” possible signals on Binomo, a step-by-step process on how to do so, the key facts that you need to remember, the pros and cons, and whether you should use external signal providers.
Key Facts
- Definition: Binomo’s trading signals provide guidance on where to place a long (up) or short (down) trade on an asset based on its likely direction.
- Reliability Measure: Binomo signals’ reliability is measured by comparing the number of correct predictions to the number of incorrect predictions regarding where the price is headed.
- Value Proposition: A reliable and replicable Binomo trading signal can be highly profitable while exerting minimum effort (some can be automated).
- Kinds: Trading signals on Binomo can be based on a set of technical indicators, relevant news, market sentiment, and others.
- Limitation: Binomo’s signals, like any other signals, are not 100% accurate. Hence, losses can still be sustained, especially if not employed properly.
Does Binomo Offer Trading Signals?
Yes, Binomo offers proprietary trading signals on its platform, which are exclusive to its “VIP” and “Prestige” members. Nevertheless, to learn how to access this feature, here’s a five-step process from signing up to using this exclusive function:
Step 1: Sign up for an account with Binomo
First, you need to open an account with Binomo. To do so, go to Binomo’s official website at www.binomo.com and click “Sign Up” at the top right corner. You can sign up using your Email, Facebook, or Google account.
(Risk warning: Trading involves risks)
Step 2: Upgrade your membership to “VIP” or “Prestige” status
Second, to become eligible, you would need to reach at least the VIP status. This membership tier requires a cumulative $1,000 total deposit on the platform. By reaching this status, the trading signal function will become available. In addition, here are the privileges you can expect per tier list:
Step 3: Enable the Trading Signals function
After reaching VIP membership status, you will be presented with the option to enable trading signals on Binomo’s trading interface. Simply click “Try it” to activate this function and receive trading signals when they are available.
Note: According to Binomo, its trading signals rely on “technical analysis principles.” However, the criteria it uses to generate these trading signals are undisclosed.
(Risk warning: Trading involves risks)
Step 4: Decide whether to use the signal or not
After enabling the trading signals function, it will periodically present you with trade recommendations stating where it thinks the asset will go (up or down) and which timeframe to use.
For example, in the demonstration above, you can see a signal stating “1 min UP.” This means that in 1 minute, the signal predicts that the CHF/JPY currency pair will go up. The 30-second timer beside the “Use” button is the amount of time you have to decide whether to use that signal or not. Upon clicking the “Use” button, you will be directed to execute the trade.
Note: If you change your mind after clicking the “Use” button, you can still cancel the trade by not pressing the “Up” or “Down” button. This ensures that you will not accidentally execute a trade and that you will have full discretion over all of your trades.
Step 5: Wait for the trade result
If you decide to use the trading signal and execute the trade, your dashboard will indicate that you are currently using it and when it will expire. Afterward, you will either make money if the trading signal is correct or register a loss if the trading signal is incorrect.
According to Binomo, trading signals are created every 1 minute. These signals can have a 1-minute, 3-minute, or 5-minute expiration time. Also, this function is currently limited to Binomo’s desktop trading platform and is not available on Binomo’s mobile app.
(Risk warning: Trading involves risks)
How To Generate Trading Signals on Binomo
If you do not want to use the proprietary trading signals generated by Binomo to guide your trading decision. You may also use one of the recommended strategies by Binomo under its “Strategy Section.” Here’s the step-by-step process on how to do so:
Step 1: Click the “Trading Tools” icon
You can find it on the bottom left portion of Binomo’s Trading Interface which is the third icon from the left among the six icons.
Step 2: Select the “Strategies” Section
Upon opening the trading tools tab, you will be presented with two sections: Indicators and Strategies. Select “Strategies” and choose from the preset strategies you can follow and get trading signals from.
Step 3: Choose a Strategy to Follow – Range Trading
Range trading is one notable example under its “Beginner” options. In this strategy, we can generate manual trading signals by first identifying an asset we want to trade and seeing if it is moving sideways (also referred to as the consolidation phase).
As shown, we can put two lines representing the Highest Point/Upper Border (more commonly referred to as “resistance”) and the Lowest Point/Lower Border (more commonly referred to as “support”). With this, we can presume that the asset will move between these points as long as there is no sudden change in market sentiment that will cause to break these two price levels.
(Risk warning: Trading involves risks)
Step 4: Generate Trading Signals
With the resistance and support levels identified, we can then use these levels as our trading signals. As illustrated, when the price approaches the upper border, this can be taken as a bearish signal that the price is near resistance and a “Down” trade is appropriate. On the other hand, when the price approaches the lower border, this can be seen as a bullish signal that the price is about to bounce back upward, and an “Up” trade is reasonable.
Step 5: Execute the trade
Lastly, execute the trade following the signal’s guidance of where the price will likely go next. If you think the price will go down since it hits the upper border of the price channel, then click the “Down” button. Conversely, if the price is currently trading in the lower border and you think it will go back up, then click the “Up” button.
(Risk warning: Trading involves risks)
Pros and Cons of Trading Signals
- Time Saver: Having a clear trading signal saves time manually analyzing each trading situation using different parameters (indicators, etc.)
- More Objective: Having a clear and actionable trading signal allows you to be more objective in your trading approach and reduces the tendency to let your emotions dictate your trade.
- Consistency: A reliable trading signal allows you to consistently replicate your trades when they follow your predefined set of conditions.
- Beginner Friendly: Trading signals such as Binomo’s proprietary signals offer a beginner-appropriate and intuitive guide that is easily acted upon.
- Prevents Analysis-Paralysis: Signals can help mitigate indecision, which is common when performing complex and detailed market analysis.
- Dependency: Relying on trading signals can lead to dependency, which might prevent you from developing your own trading skills.
- Cost: Automated and proprietary trading signals often come at a cost. For example, Binomo’s trading signal is exclusive to its VIP and up members.
- False Security: Signals can provide a false sense of security, which can lead you to take more risks (by having bigger positions).
- Risk of Overtrading: Easy access to trading signals like Binomo’s may encourage overtrading as it simplifies one’s trading process.
- Variability: The quality of a trading signal varies greatly depending on the provider and the market condition you trade in.
Should you use external signal providers?
With all these things considered, we do not recommend using external signal providers. This is because most of these signal providers are unreliable, fraudulent, and can cause massive losses. This is especially true for signal providers guaranteeing an impossibly high (90% and up) success rate of their trading signals. Remember that there is no such thing as a “guaranteed” successful trading signal.
Moreover, subscribing to an external signal provider exposes you to malicious parties that can even compel you to share your account details knowingly (such as through social engineering) or unknowingly (such as through malicious links and files). Thus, your best option is to either register for Binomo’s proprietary trading signals or develop and refine your own “best” trading signal.
Conclusion
Overall, trading signals can provide an intuitive way to trade. Their ease of use and the lower effort required (especially in the case of proprietary signals such as those from Binomo) entice many traders, particularly beginners. Yet, it is crucial to remember that no trading signal guarantees consistent trading success. Thus, it’s equally important to develop your trading skill set to supplement and refine the “best” possible signals you can trade.
(Risk warning: Trading involves risks)
Most Asked Questions:
What are trading signals?
Trading signals are “cues” that contain information on which direction the price will likely move and when it will most likely occur. Reliable trading signals give traders an “edge” by simplifying the trade analysis process and boosting the trader’s overall profitability.
Does Binomo offer trading signals?
Yes, Binomo offers a proprietary trading signal based on “technical analysis principles” (the criteria it uses to generate these trading signals are undisclosed) to its VIP and up members. However, to have access, you would need a cumulative $1,000 total deposit in your Binomo trading account.
How can I measure the reliability of Binomo’s trading signals?
You can measure Binomo’s trading signals by comparing the total number of correct predictions it made versus the total number of incorrect predictions about where the price is headed within a set period of time. For example, you can observe all of Binomo’s trading signals for a set period and log them individually. After this period, tally up the total correct and incorrect signals. If the total correct signals constitute at least 60% (the standard), then Binomo’s trading signal may be considered reliable.
Are external signal providers a good alternative?
Generally speaking, no. Most signal providers are unreliable, deceitful, and a waste of money. This is particularly true for signal providers guaranteeing a 90% and up success rate of their trading signals. Hence, despite most being a cheaper alternative, they can cause you to lose more money over the long term due to subscription costs and the trading losses you will incur.
Can I create my own trading signal?
Absolutely! You can create and refine your own trading signal. This is perhaps one of the cheapest yet one of the best ways to do so. This is because in order to improve your own trading signal, you will also have to improve your trading knowledge and skill set first. Hence, it will enable you to generate the “best” possible signals for your unique use cases.
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