A signals service is a subscription service that updates you when an asset should be bought or sold, or simply lets you know what conditions you should be looking for in order to execute a trade. Some of these are completely automated, and others are sent by a live person. In the end, where they […]
Evaluating Binary Options Signals and Alerts
It would not be wise to sign up to receive binary options signals before properly evaluating the service being provided. The truth of the matter is that anyone can say that they are able to provide winning signals at a high rate, but only a few are able to actually deliver. Furthermore, the way in which these services work does differ, so it’s important to only subscribe to a service that is suitable for your schedule and how you like to trade.
The first area of evaluation should be the win rate. This will be the percentage of winning signals as opposed to losing signals. A solid win rate would be in the area of around 65% to 70%. A few, but not many signal providers are able to provide a winning percentage of higher than this. Each provider is going to advertise their top rate, but how do you know that the claim is true? The most reliable methods include:
Sign up for a free trial (if available) and put the trade alerts to the test. This is the best way to see what the performance actually is. If signals are provided around the clock, you will of course not be able to make use of every alert. Even so, through testing you should be able to determine an average win rate for the times of day that you typically use the service.
If testing is not possible, contact the signal provider and ask how you can see the actual results for the past few months. Some providers make this information available on their website, while others retain files of past results. Not only will this information tell you much about the success rate, it will also show the typical times of delivery, which assets and expiry times are used most frequently, and how the information is presented to traders.
The internet is loaded with binary options traders, and this fact means that traders are able to easily connect and share information. In some cases, the best way to judge the reliability of a broker or signal supplier is to ask others who have used the service. Message boards, chat rooms, and social media sites are just a few of the places where you can find fellow traders to confer with.
With the success rate matter handled, the next step will be to check on things such as delivery method, hours of delivery, and which assets/expiry/instruments are being used. The delivery method may or may not be important to you. Some providers offer several methods, including website, chat, text, and more. So long as there is at least one method that is suitable to you, there should be no problems. The hours of delivery are much the same – you just need to make sure that alerts will be arriving during the hours you typically trade.
The assets, expiry times, and instruments are less important in that you should be willing to use whichever options are provided in order to turn a profit, but quite important in that you will need to make sure that your broker does provide those options. Each broker is different in what they provide, so do compare notes to make sure that the signals that come through can actually be used within the trading platform that you have chosen.
Signals have become an extremely popular tool for helping new traders to start earning right away. They can also help seasoned traders earn even more than they would alone. When they come from the right source, there is certainly value in paying for such a service. With that being said, it is extremely important to completely evaluate any provider of binary options signals before paying for a subscription.