The world of traded markets consists of those who generate set-ups themselves and those who prefer signals. It’s a passive method of earning for investors with little to no experience or others who like to capitalize on the expertise of skilled analysts.
Quotex, one of the top binary options brokers, offers trading signals to its traders. Let’s learn more about using and generating them here.
Quotex Trading Signals in a nutshell
- Quotex’s trading signals are integrated into its platform. The broker provides the service free of charge to live account holders.
- Third-party trading signals are much riskier.
- Dedicated traders willing to commit the time can generate their own signals.
- Trading signals come with their pros and cons.
Which Type of Signals Does Quotex Offer?
Quotex’s signals are integrated and generated automatically (often every minute) within its trading platform for live account users. Hence, you can apply them directly once you have funded your account with the broker’s minimum deposit of $10.
The purpose of integrated signals is due to the fast nature of binary options. Unless one uses a copy trading platform, traders in other markets must execute the signals manually. So, Quotex greatly helps clients by providing automatic signals that they can apply immediately.
(Risk warning: Trading involves risks)
Should You Use Third-Party Trading Signals?
We recommend traders avoid third-party signals for several reasons. Firstly, binary options are less regulated than other markets. Thus, you are likely to encounter illegitimate providers or services. Moreover, there are no guaranteed profits.
All in all, there are too many risks involved. Quotex’s integrated signals are a better option, especially because the platform generates them automatically, saving precious time and effort. Signals with an 87% accuracy rate will help you to build a profitable strategy.
How to Generate Trading Signals On Quotex Yourself
Some traders are discretionary and prefer to create their trading signals or set-ups from scratch. Thankfully, Quotex is a capable charting software that can bring out the best among binary options traders.
Let’s go through a brief step-by-step guide.
Learn The Basics of Binary Options
A binary option is an exotic option with an ‘all or nothing‘ structure where you either gain a predetermined payout or nothing at all. Like other options, binary options have an expiry time.
The most basic binary option is where you must predict whether a certain market will be above or below the strike price before expiry. Quotex’s expiry times range from 5 seconds to 4 hours.
A binary option can derive its price from several markets. Quotex offers these in instruments like forex, crypto, stocks and commodities.
Choose And Stick to A Trading Strategy
They say there is more than one way to skin a cat. Here are a few popular strategies self-directed traders learn when formulating their signals.
- Trend-following: These strategies capitalise on a market’s current trend or predominant direction. Examples include moving averages, trendline bounce, pivot points, continuation chart patterns, etc.
- Reversal trading: Trading reversals is the opposite of trend-following. Simply put, it’s betting against the market’s current momentum. Well-known strategies include divergence (on momentum indicators like the Relative Strength Index), Bollinger Bands reversal strategy and numerous price action/chart patterns.
- Hedging: Hedging is when binary options traders take two opposite positions (a buy and sell) on one market simultaneously. This is playing both sides of your trades. While primarily a risk management strategy, traders can generate a profit regardless of the outcome.
- News trading: Here, traders take advantage of planned news releases (common in forex) or other newsworthy material expected in a particular market, like Bitcoin. News trading suits the fast-paced nature of binary options, where you seek to profit from a small price movement before exiting.
Regardless of the strategy, the most crucial thing is to find a profitable one. Skilled traders often use multiple indicators and patterns to create solid trading signals or ideas.
Test Your Strategy on A Demo Account
Consider a demo account the ‘testing ground’ for your strategy or strategies on a live account. Quotex provides a demo account with a huge $10,000 balance. This allows users to trade as many times as possible using large sizes and explore endlessly with zero financial risk.
It may be tempting to spend a few weeks during this stage. However, the most successful traders can remain on a demo account for at least a year before being confident of their strategies.
The demo period is also a good time to create a trading plan that looks at what to consider before a trade, whether you will manage that trade in any way once it’s live, and so on.
(Risk warning: Trading involves risks)
Be Well-Prepared Before Each Trade
A trader should be able to execute their strategies flawlessly at this stage. After identifying a trading opportunity, always revisit your trading plan at least once for extra confirmation.
Other pointers to keep in mind:
- Risk no more than 2% of your account for each position
- Don’t revenge-trade
- Don’t over-trade
- Always keep a calm and neutral state of mind regardless of the outcome.
- Set a daily loss limit
Pros and Cons of Trading Signals
Let’s compare the good and bad side of trading signals in general.
- Ability to profit with little effort and time: Signals allow traders (particularly those without experience) to profit from the markets with minimal effort and time.
- The removal of emotion: Using signals is a more mechanical way of trading. Self-directed traders or those who produce their own set-ups must deal with many emotions. Meanwhile, signals offer straightforward recommendations from profitable strategies, meaning less thought is involved.
- Diversification: Signals also benefit experienced traders, offering them a secondary income stream on top of their existing trading. They can speculate in other markets and get signals in binary options simultaneously.
- Over-reliance: The main downside is the tendency of investors to become over-reliant and shift the responsibility towards the signal provider. They often may disregard learning about the inner workings of binary options to gain a basic understanding and develop their own strategies one day.
- Risk isn’t entirely removed: Signals may come with clear instructions or be integrated (in the case of Quotex). However, human error can still be a factor where traders could input the wrong signal or make a positional mistake.
Learn Profitable Strategies With Binaryoptions.com to Generate The Best Signals
Binaryoptions.com is the ultimate place for binary options, offering the best education about this way of trading with over ten years of experience. Viewers can learn various strategies, expert knowledge and reviews on the best brokers.
We also have an excellent Udemy course covering everything one needs to know to master binary options.
Final Word
Trading signals have lowered the barrier of entry for inexperienced traders keen on participating in binary options. They also appeal to existing traders who wish to diversify or take advantage of interesting ideas.
In either case, few binary options can compete with Quotex for trading signals. Despite this, being cautious and aware of the risks is crucial.
The course by Binaryoptions.com can provide the necessary knowledge to maximize the benefits of signals or trade binary options.
(Risk warning: Trading involves risks)
FAQs – Most asked questions
How accurate are Quotex signals?
Traders should expect an average hit rate of 60%.
Can Quotex’s trading signals guarantee profits?
No. Like any other signals, they will fail at times.
How do traders get signals from Quotex?
You need to have a live account with a minimum of $10. Traders can receive the signals directly on the broker’s trading platform.
Is there a cost to using Quotex’s signals?
No. Yet, users should always consider the potential of losing money for each signal.
Are third-party trading signals safe to use?
No, third-party trading signals can be risky due to the lack of regulation in binary options. It’s recommended to use Quotex’s integrated signals, which are more reliable and safer.
James Griffin
says:Finally, another article that was very simple to understand and follow. Very helpful. Tks