Is binary options trading legit good ideas

BinaryMate Review. Binary option trading is an exciting and potentially rewarding way of investing it is open to everyone regardless of your experience level and financial standing. In fact, one of the best things about binary trading is that you do not need a big pot of money to get started, even a small pot can rapidly multiple provided you choose your trades carefully. Binary mate offer a comprehensive range of materials on their website. You can access information which will guide you through the basic trades, or complex strategies with high risk and high rewards. The material is available for free to all their account holders and can be of great assistance when planning your trades. This is not the only thing that BinaryMate is giving away! A basic account holder will see a quarter of their initial deposit given to them just for signing up to an account. Middle account holders will see half their funds whilst the top level account holders will see their funds matched. A minimum deposit of three thousand dollars is needed to gain access to the top end account. Premium account holders will also gain access to a personal assistant who will help them understand the best trades to make and when to place them. If the prospect of free money is not enough to attract you then you should consider the ease of access to your funds. All funds can be deposited via a huge range of methods there is certain to be one which will match your needs or wallet. Even more impressively is the ability to withdraw these funds within an hour of requesting them! As with all brokers there are conditions attached to withdrawals and you should check these before you access your funds.

Binary mate only came into existence in 2016 but has gained a large following due to their approach to trading. Their platform has been designed by themselves and is radically different to what the existing brokers are offering. Among its special features there are easy access to all trading options including analysis. The layout feels natural and the market analysis both technical and fundamental is available on the screen whilst you consider your trade options. There are a variety of assets available to choose from, ensuring that you can trade in your preferred market area. They also offer a good range of trading options from the basic price direction trade to more complex boundary options. One of the fundamental ideas of their own platform was to ensure that performance was placed first. This is probably the fastest brokerage site currently on the web the prices displayed are as close to real time as possible this allows you to trade safe in the knowledge that you have all the necessary information at your fingertips. The performance of the site also helps to ensure that you are accessing a quality product and can rely on the information you receive. The high level of service and responsiveness of the site is one reason why it is proving to be so popular. As a newly developed site it also benefits from the highest possible security rating, helping to protect you from unwanted threats and risks to your funds. It is possible, if you wish to to connect your account to a robot and undertake automatic trades.

Opinions are split as to whether this is the best way to approach binary trading, but the option is there! The other reason that this site has proved itself to be both popular and practical is the fact that it brings something new to the world of binary options trading. Traders can use video chat at any time of the day or night and will be connected to a member of the customer service team almost instantly. The live chat has a video function which allows you to see the person you are chatting to and connect with them. This will help to inspire confidence in your analysis and the trades you are intending to make. All staff have a good knowledge of binary options trading and are happy to help you. There is, of course an option to email customer services, however, there seems little point in doing this as you will receive a faster response via live video chat. However, you may prefer the anonymity of email or simple feel your question was too complex to be asked directly to a customer service staff member you may not wish to put them on the spot! It is worth noting that there is a list of basic questions and the best answers on their website but these are unlikely to help if you have a personal enquiry. BinaryMate may be a new broker but they are definitely worth considering! Finrally Review. There are a limited number of Binary Options Brokers that you can sign up to if you are an America based trader, however one site that is worth checking out is Finrally. This licensed and regulated Broker offers all clients a very large range of deposit and withdrawal methods and as such no matter where you live in the world you will be able to fund your account and get paid rapidly.

As one of our higher rated Binary Options Brokers there are of course plenty of unique reasons why they are worthy of your trading action, and to give you some ideas of what you will find on offer we have highlighted all of their outstanding qualities below. What Trade Binary Options at Finrally? We want all of our Binary Options trading website visitors to have a first class trading experience, and as such we only showcase to you Brokers that meet and exceed our strict criteria for approval. Below are several of the reasons why we have chosen to showcase Finrally to you and we invite you to test them out today, ideally by making use of our exclusive new trader bonus offer mentioned below! One Hour Payouts – Gone have the days of you having to wait for long periods of time to get your withdrawals processed and sent back to you. Finrally are famed as being one of the world’s fastest paying Binary Options Brokers, and as such if you sign up as a real money trading and have a profitable trading session, when you go on to make a withdrawal your winnings will be paid out to you within one hour! Huge £250 Bonus – Locking in the best possible value from your often overstretched Binary Options trading budget is of course what every single trader will be looking to do. You will certainly get value if you choose to make use of the new trader sign up bonus at Finrally as you will be able to claim up to $250 in bonus credits as a new real money depositing trader. Up to 90% Profit – You will of course be looking for a Binary Options Broker that is going to offer you the highest potential profits on every single trade you place, well we are pleased to announce that if you sign up to Finrally today you will have the ability of making up to 90% profit on your real money trades. $1 Minimum Trade – Many Binary Options Brokers have some quite restrictive minimum trade value amounts, and as such you will often find you have to place some very high valued trades at those brokers. However, Finrally caters for all levels of traders and as such you can make a trade with a little as just $1. Bitcoin Accepted – There are 20 different banking methods you can use to both fund and make a withdrawal from your Finrally trading account. However, if you are looking or a Broker offering you the ability of making deposits by and withdrawals with Bitcoin then this is the Broker for you.

Is binary option trading safe? I have held back from writing about binary options trading as one of the ways to earn an income at home until I found out more about it. I have not chanced trading in binary options as yet, and that is why I needed to research more about this alternative way to earn working from home, but before talking to you more about it, my aim was to establish this: is binary options trading a good idea, and can you make money online by trading binary options? What is binary options trading? The name in itself gives it away. Binary is referred to the fact that you are asked to choose on one of two options. In the world of binary options you put a bet as to whether the value of certain assets, such as gold, or stocks or markets, will go up or down within a certain time frame. If your prediction is correct, you will win the bet and will earn a pre-set commission. However if you loose the bet, or rather your prediction is incorrect, you will loose the money you have invested in the bet. Put in such terms, binary trading sounds no more no less than a pure and simple betting system – nothing brainy, more so made easier as the choice is only between one of two options, as opposed to the many chances put to you by a more sophisticated probability system. But at the end of the day, it founds its concept on a gambling system, and as such may have no security attached to it when it comes to guaranteed earnings.

For this reason, many do not trust, or will even consider binary trading as a legit way of earning from home. Have a look at a training video from IQ Options, one of the leading and most reputable brokerage platforms world wide: Who can trade in binary options. Binary trading is done mostly online nowadays. Therefore, provided you have a computer or laptop or even a tablet and a wi-fi connection, no matter where you are, you can trade in binary options. Everybody is deemed suitable to trade. However, you must have a minimum capital available to invest immediately. Also, it is deemed that in order to be successful at trading in binary options, you must have done research on the ongoing trade in the value of the asset you are betting for. So, if for instance you would like to predict which direction the value of gold is going to take within the next 24 hours, you may have done your research beforehand, also looking at recent political events in the main countries that produce and export gold and which may affect economic trends in those countries that import and resell gold for retail. In other words, for you to become a successful binary options trader, you must have good nose for a hunch. So, is binary options trading a scam? Given the risky nature of this business, not many of us take lightly to such a way of earning. In first instance, and unlike many other ways to earn whilst home based, this type of business requires an initial capital to invest.

You will be saying the same applies when you purchase stock to resell, or when you purchase a domain to build a website. However the risk with binary options trading is seen as much higher as you do not handle physical goods, nor do you receive an immediate service in return for your investment. However the ill reputation binary options trading has gained is due to the many fake broker companies readily available on the market. What gives bad reputation to binary options trading. Unfortunately in the past binary trading was primarily available through broker companies that were not legit or did not pay commissions as per original agreement. These companies were pure and utter scam – cowboys who chanced their luck on beginners to make themselves rich at the expenses of the many of us who were trying to invest their hard earned money for a chance of an extra income. Thankfully the binary trading market has been regulated much more tightly all over the world in recent years. Nowadays there are many reputable brokers out there, who not only offer you the opportunity to trade free of charge initially for you to get used to the system and to make yourself comfortable and learn how trading works. But many brokers these days also allow you to put your prediction with a reduced investment, unlike in the past where you could only trade, and risk to loose, higher amounts of money. A couple of tricks up your sleeve, or three… Now, I am no expert in this field at all. In fact, as mentioned, I have always been sceptical about the whole affair, nor have I felt comfortable talking about binary options trading as a good way to earn from home until I have satisfied my doubts by researching. And in the course of my research, I have come across a couple of tips or three from the expert as to how to make binary options trading less risky for you. #1. Do not bid more than you can afford.

There is no denying that brokerage platforms are in the business to make a profit, not certainly to play even. Another aspect of this business therefore is to bear in mind that, at the end of the day, you are dealing with a sales business where it will be in their interest to ‘encourage’ to place your bid for as high money as they can possibly squeeze from you. Like in gambling, you must be absolutely level headed about binary options trading. Never trade for more than you can afford. In fact, best secret is always to go for less than for more. Yes, admittedly by bidding for less you may miss out on the highest earnings. But you will also miss out on the highest loss, should your prediction not be accurate on the day. Again, and as mentioned before, find a platform that will allow you to bid for little amounts of money. Commissions on binary options platforms are really appealing, with winning in the region of 70-80% increase over your bet. So, to put it plainly, if you started bidding for as little as a tenner and got your prediction right, you could see your winning nearly double up at as much as £17-18. But remember that if you loose, you will loose a much higher percentage of 100%! For this reason… It is vital that, like when gambling for fun in a casino, you know when it is a good time to stop.

So, if you are on a relatively healthy winning, just stop – do not chance your luck one too many times. Or again, if you are really tempted, just keep bidding that one more time for a small figure. A lot of brokers put a payout limit to your withdrawal of funds from the trading platform. Try looking for a relatively high one, but never leave too much deposit on your platform’s account. The more money you leave there, the more tempting it may be for you to keep bidding. And also, it is your money at the end of the day, and by leaving it in the pockets of your broker, you will enable them to earn in interest rather than if your money sat in your bank account!! And this last tip is applicable yes, to current news of political and financial nature that could possibly have an impact on the value of the commodity you are about to bid on. But it also apply to the platform you choose to use for your trading. Try to go for what appears to be a reputable one. Before you commit your money to them, however small a figure it may be, google reviews on that company and find as much information as possible about how reputable and reliable in their payments they are. Do not go for binary options trading if you do not feel absolutely comfortable with the idea of ‘gambling’ however little amount of money, whether that may be for ethical or religious believes, or simply due to financial hardship. However, if you are ready to chance your luck, go for a platform that will allow you to be as cautious as you wish – for a platform where you are in control of the game, not them!

Truth be told, have I ever tried trading in binary options? Never! In fact, I have never traded in stock and shares markets either. Would I ever do it? Now I have come across IQ Options, yes I shall, given the fact that you can start trading for as small as £10! I shall discuss the merits of IQ Options more in details in my separate review. Rest to say that IQ Options is one of the reputable platforms I was referring to, giving you the options to trade in real time with no deposit, for you to familiarise with the system. They use commodities with high commission percentage, therefore making your taking the risk on your deposit worthwhile. Unfortunately they have a payout threshold of £1000, but this practice is not uncommon in financially related industries, and if you start making a substantial profit, and are prepared to bid higher figures, you can reach that payout fairly quickly. Another chance for affiliate marketing. Admittedly, my field of expertise when it comes to making an income from home, is through affiliate marketing. And that is the other reason why I like IQ Options. If you believe IQ Options is a true way to make money online through binary options trading, and if you would like to give others the opportunity to earn as much as you have just done, click on the above banner and find out the high earning potentials through promoting IQ Options as the place to be when it comes to legit binary options trading!

I am sure there are many of you out there who have had a go at binary options trading and lost money, and many others who in fact are still trading successfully. As I am still very much a newbie in the subject, I would like to find out more. Please leave your comment below and let me know what you think of it. 12 thoughts on “Is binary option trading safe?” Thank you for your awesome post and clarifying a few more things on the Binary trading. I did some research a bit ago on a character that like you mentioned gives this a bad name! He certainly did that and in a few countries. Knowing that there ARE Legitimate ones has me feeling a bit better. As anything on the Internet, we have both good and bad and sometimes the bad apples really spoil it for the good guys. Thanks again. Yes, that’s definitely the case Merry. And yes, this type of business is indeed riskier than most, when it comes to investing your money in a venture to make an earning from home. But, there are reputable and legitimate platforms out there. It’s just a matter of keeping looking hard, and on reading reviews.

Wow great article about binary options. I am into options aswell (not binary options though). I never really was sure if I could trust binary option brokers before. But your post really gave me a better understanding of the subject. So thanks for that! Im glad I could be of service Los. And yes, you are right, there are a lot of dodgers out there, and you can never be too careful. Like with everything, especially as you are trying out different ways to make a living from home, I think the secret may be in starting slow but sure. Hi, Giulia, today a definitely learned something new I never knew about binary before but you explained so well in this blog that I went trough till the end also I find the video explains very well what is all about it thank you for this great information Renato. You are most welcome Renato.

I’m glad to hear you got the gist of this form of trading. And by all means, do let us know if you going to give it a try! I agree with you, binary options just seem like gambling. You may as well just take your money and bet on red or black on the roulette table, it would be easier and has the same odds. That said, people are just hungry for simplicity in investment, and eager to make money easilyinstantly. That’s why binary options continue to be popular, I think. thanks for the informative article and recommendation! Funnily enough Penny, since writing my post I have started trading on the IQ Option demo account – I thought I should give it a go before writing more about it. And what struck me is the simplicity of the system. But, so far I’ve not done very well at all. So, I might hold onto my money for a little longer!

This is not the first time I hear about binary options trading. In fact, I have done some research about it. I have to admit it’s tempting but it’s not for me. I’m not comfortable with gambling and that’s basically what it is. Nonetheless, you’ve provided your readers with good tips to follow if they decide to give this a try. Very well organized article. Thanks Chris. And yes, you are right, it’s a form of earning which, if you don’t feel comfortable with it, you must not try. Many people, including myself, have doubts about it. Since writing my post, I have started trading on a dem account, and I must admit, the results are not encouraging enough for me to use my own money on it. Some people just don’t have that hunch, and I fear I may be one of them! 🤣 Like you I have to look more into binary trading options. However, I do think it deserves study. I know a lot about Forex and I know there are a lot of software that will send you binary signals indicating when to place a trade or indicating a change in a trend. I wrote, a review on a new affiliate program out called Forex Entourage and I am almost sure they are offering a binary signal software. Now whether this is the same as Binary trading, I don’t know. However, I love the financial industry.

Although it is very volatile, with enough training and practice, you could make a lot of money. When it comes to binaries, the one thing I know is it is all about timing. If anyone wanted to get into trading, I always direct them to the Forex. I learned what I know using this site called BabyPips. com. The more and more you study anything in that industry, you will come across more information about Binary stuff … options, trading, and signals. I will be checking back to see what more you find out. Thank you for sharing. Thanks for the heads up Shonna, your advice is really useful.

And I suspect it won’t harm to give it a try, by bidding for really small figures. This way, yes your earnings may be lower when you win, but your losses may be also reduced, hence less damaging. And yes, please do keep in touch. The more information we can share, the less risky the game becomes. Leave a Reply Cancel reply. Hi all, I am Giulia, from Ideas for Home Working. I hope you find my blog on how to earn a living working from home legitimately interesting. Please note that some of the links I include on this site are affiliate links. This means that I earn a small commission if you purchase or join the service through my links, which will go towards maintenance costs of this website. I hope I can be instrumental in realising your dream of freedom and success!

Binary Options Trading. Binary options is a simple trading instrument that can be used to earn money by guessing the future of the Forex, stocks, commodity and other prices. With binary options you either win if you guessed it right, or lose if you guessed it wrong. BinaryTrading. com is here to help you to win more often than lose. You will find here information on binary trading brokers, some basic education concerning binary options, and guides that will help you improve your trading skills. BinaryMate. The most unique feature on that platform is the opportunity to chat with an account manager at any time. Join one of the best binary trading websites. Enjoy pure excellence in trading conditions and customer service. Trade options on great variety of underlying assets and employ unique analytical tools. If you have some ideas or suggestions on what should be included or listed on this website, please contact us. Recent Articles. Search. Recommended Brokers.

Newsletter. Binary options trading involve risk. Although the risk of executing a binary options open is fixed for each individual trade, it is possible to lose all of the initial investment in a course of several trades or in a single trade if the entire capital is used to place it. It is not recommended to base your investment decisions on any information presented on or originating from BinaryTrading. com. By browsing this website you express your acceptance of the terms of this disclaimer and that BinaryTrading. com cannot be deemed responsible for any losses that may occur as a result of your binary option trading. BinaryTrading. com is not licensed or registered as a financial consultant or adviser. BinaryTrading. com is neither a broker, nor funds manager. The website does not provide any paid services.

All content of BinaryTrading. com is presented for educational or entertainment purposes only. General Risk Warning: Trading in Binary Options carries a high level of risk and can result in the loss of your investment. As such, Binary Options may not be appropriate for you. You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk appetite. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to Binary Options or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Binary Options: Scam or Opportunity? We’re recently getting more and more contracts for coding binary option strategies. Which gives us a slightly bad conscience , since those options are widely understood as a scheme to separate naive traders from their money. And their brokers make indeed no good impression at first look. Some are regulated in Cyprus under a fake address, others are not regulated at all. They spread fabricated stories about huge profits with robots or EAs.

They are said to manipulate their price curves for preventing you from winning. And if you still do, some refuse to pay out , and eventually disappear without a trace (but with your money). That’s the stories you hear about binary options brokers. Are binary options nothing but scam? Or do they offer a hidden opportunity that even their brokers are often not aware of? Binary options, in their most common form, are very different to real options. They are a bet that the price of an asset will rise or fall within a given time frame. If you win the bet, the broker pays your stake multiplied with a win payout factor in the 75%..95% range. If you lose, you pay the stake minus a possible loss payout . You’re trading not against the market, but against the broker. The broker needs you to lose, otherwise he would not make any profit.

Even if he really pays out your wins, and even if he does not manipulate the price curve, he can still control your profit with his payout factors. So it seems that even if you had a winning system, the broker would just reduce the payout for making sure that you lose in the long run. However this conclusion is a fallacy. It can in fact be of advantage for the broker to offer a payout that allows you to win, as long as most other traders still lose. A broker has not the freedom of arbitrarily reducing the payout. He’s competing with other brokers. But why would you want to trade binary options anyway, when you also can trade serious instruments instead? If you wanted a binary outcome, you can also achieve this by opening a Put or Call Spread with real options – and this with a serious broker, much higher payout factors (even more than 100%) and the possibility to sell the options prematurely. But aside from tax advantages in some countries, there is one single compelling reason that might make a binary options trading experiment worthwhile. Profit and trading cost of a binary option are independent of the time frame. So you can trade on very short time frames, which would be difficult, if not impossible with real options or other financial instruments.

You can find a discussion of this problem in the Scalping article. Binary scalping math. The required minimum win rate for binary trading can be calculated from the broker’s win and loss payout: W = required win rate for break even. With 85% win payout and no loss payout, you need a win rate of. 54% win rate seem to be manageable on short time frames. The transaction costs of a non-binary, conventional broker would require a much higher win rate, as in the following graph from the Scalping article: Required win rate in percent vs. trade duration (non binary) You had to win almost 80% of five-minutes trades – impossible for a trading system under normal conditions unless you enforce that win rate with some tricks, which however won’t help getting in the profit zone. So, smaller trading costs on low time frames are the obvious benefit of trading binary options. With all the side benefits of low time frames, such as more data for backtests, and shorter drawdown periods in live trading. But how can we take advantage of that? There are three problems to solve. Three steps to potential binary profit. Find a method with a win r ate that is better than the W determined with the above payout formula. But be aware that prices on small time frames are strongly feed dependent. Normally you won’t know your binary broker’s price source (if he has any at all). For being on the safe side, test with different historical price data from different serious brokers (f. i. Oanda or FXCM) and stay some percent points above the minimum W . All those issues make trading binary options sort of “messy”.

However it’s the messy methods that sometimes offer the best opportunities. Ed Thorp made his first millions not with ‘serious trading’, but with a Blackjack method and with a method to estimate the value of warrants, both also considered messy and hard to calculate at that time. A price curve is no random walk. At least not all of the time. Long time frames are often dominated by trend, short time frames by mean reversion. When transaction costs do not matter, it’s not very hard to find a system with > 54% win rate on 5-minutes bars. Here’s a simple example that exploits the mean reversion tendency of short time frames (script for Zorro): In the C code above we defined an individual objective() function that optimizes the system for binary trading. It measures the system performance as the number of winning trades divided by the number of losing trades. Otherwise the optimizer would hunt for the most robust profit factor, which makes no sense for binary trading. The setup establishes a 5 minutes bar period, which is the time frame of our bets. We use 20 WFO cycles and let the optimizer use all CPU cores but one.

This way the training run takes about 5-10 minutes for 5 years data. The BINARY flag activates binary trades, and we’re simulating a broker with 85% win payout and no loss payout. We have a mean reverting system that trades whenever the current price is closer than a threshold – here, 1% of recent volatility – to its previous High or Low. The time period for determining the High and Low is the only system parameter that we optimize. You could improve the system in many ways, for instance by optimizing also the threshold, by modifying the objective() function so that it prefers systems with more trades, and by applying a filter that prevents trading in non mean-reverting market regimes. Since we bet on the price in 5 minutes, we’ve set the LifeTime of a trade to one bar. Here’s the equity curve from a 5 years walk forward test with EURUSD: The system has about 56% win rate and a notable, although not spectacular positive return. Which is not achieved by the crude mean reversion mechanism, but mostly by amplifying the small entry-exit price differences through binary trading, even though the payout is only 85%. You won’t get a similar result with conventional trades. The same system not trading binary options, but leveraged forex positions produces a very different equity curve (for testing, comment out the BINARY flag and the Payout settings in the code): With the same trades we have now only 40% win rate and an overall loss, since all the trade profit is eaten up by spread and commission. How do you let your script automatically enter a bet at the right moment? This is a technical issue unrelated to trading, but it comes up whenever you have a broker with a web based platform and no proper connection for automatizing. Here’s a code snippet for detecting the positions of Buy and Sell buttons on a website, and automated clicking them: Start the script, and wait until the broker’s website pops up in your browser. Then follow the instructions in Zorro’s message window. Manoever the mouse onto the “Buy” button and hit the right mouse key.

Then do the same with the “Sell” button. The script will store the button positions and then use the keys function to send test clicks to both positions of the active window. For testing purposes I’ve imitated a typical binary broker’s trading platform. You now only need to glue together your trading script with the button clicking script, and adapt the latter to the website of your broker. This is left as an exercise to the reader. And better use improved versions – the scripts here are kept simple for demonstration purposes. As long as the script trades, make sure that the browser window stays in the foreground, or else it can not click on the buttons. For the position size, either enter a fixed size for all positions, or let your script click into the size field and send key strokes to set individual sizes. Of course I don’t want to recommend a particular binary options broker. In the end, they’re all crooks – but some are crookier than others. Finding a suited broker is, also, left as an exercise to the reader. Binary broker comparison websites are often – surprise, surprise – installed and paid by binary brokers. US citizens are normally not allowed to trade binary options with brokers that are not regulated in the US. Some brokers will accept your deposit nevertheless, but use that as pretext to refuse payout. If you’re a citizen of Israel, you might not be accepted by many binary brokers since they’re not allowed to fraud compatriots.

It’s often the “messy” and despised trade instruments that can still provide opportunities when they are correctly understood. I’ve uploaded the two scripts to the 2016 repository. You’ll need Zorro 1.52 or above for running them. When you now make huge profits with binary options, don’t forget where the money comes from: Not from the broker, but from his less fortunate customers that maybe just haven’t read the right blog. Addendum: From all articles on this blog, this one attracted by far the most spam comments. From them it appears that a new lucrative business has established in the orbit of binary brokers: recovery fraud . As soon as you’ve lost your money, you’ll receive offers by “hackers” or “law firms” to recover it, for a fee of course. Where did they get your address from? Naturally from the very broker that bagged your money… 71 thoughts on &ldquoBinary Options: Scam or Opportunity?&rdquo Thank you for this article. Would you happen to know of any software out there, or a model, that cap produce a binary risk curve over time? Similar to the risk graphs created by traditional options software?

I found one on Wolfram but I can’t change the security prices. It would be very helpful for me to understand binary prices over time and volatility levels. I don’t know such a software for binary options, but you could probably calculate the graph with the standard Black-Scholes algorithm, just as for a normal European option. The question is only what you would do with this information, since you can normally not sell a binary option during its lifetime. I have an account at Nadex and you can buy and sell them (close out a position). So I would be helpful for me to mode out the possible prices over time. I bought your book recently and really liked it. Lots of great ideas for trading algos. I’m glad I understand some German. Here a question regarding your article: I’m a complete newbie to binaries, so please forgive my ignorance. You say that the trading cost does almost not depend on the the time frame. Obviously, when you put on a lot of trades in a short time, the expected profit is usually small, so it can easily get eaten up by commissions. As far as I understand, the payout of a binary is fixed, so it is always the same whether your trades last 1sec or 1000secs, which makes it in some sense time-independent. However, (and this is where I’m a bit green still), binaries have a fixed expiry date, so our profits are in some sense bound to the time to expiry and get smaller the closer our trade entry get to it. On the other hand, the closer we get to expiry, our probability of reaching a certain target price increases as the path divergence from spot to expiry gets smaller.

So, in my naive understanding, the algo you presented above should only work optimal for a given time in the day that is n periods away from expiry. I’m probably wrong but I would like to hear your opinion of why this is not the case. PS, I think it should be fairly easy to model binary options with Monte Carlo rather than Black Scholes, as it is easy to put all sorts of constraints in it. I’ve done this with Barrier Options, it’s slower but quite effective. Do you intend on translating your book, or I’ll have to buy the e-book and them Google translate it? =) @ Jeremy, Tom: I had not heard of Nadex before, but they indeed allow to exit an option before it expires. This article was only about the usual options with a fixed duration and costs independent of duration, but exiting options opens new interesting possibilities. A risk graph makes then a lot of sense. Maybe that could be the topic of another article. – @ Gonzatti: Yes, I’ll translate it when I find the time. Informative and entertaining as ever. Many thanks.

Jeremy, Tom – thanks re Nadex. Interesting. hi, very interesting article, me too have an account at Nadex. and they have a very good and and informative site with huge amount of info. could u check their platform and how we can use this platform with Zorro app. with best regards. From what I see, Nadex seems not to provide a direct connection. So you would need a script like above under “Step 2” or some similar solution for controlling their trade platform. Thank You for this informative contribution. The expiration time of the option may no doubt also be an interesting parameter to look at, although it is very broker specific what it can be set at. I have been trying to exploit this additional parameter, since in zorro there is the possibility of adjusting the ExitTime from the BarPeriod to some other value (I inserted after “LossPayout = 0” simply ExitTime = 15 for instance). Surprisingly, if I do so with the above script the test result is always the same which can certainly not be correct. Why does this fail?

Because your ExitTime is overridden by the LifeTime setting. You can use either ExitTime or LifeTime for the duration of a trade, but the recommended method is LifeTime. – You can find those issues by looking in the logfile. There you can see how long the trades last and which profit they make. great article, in my experience the binary options is good, but requires an method and some education, i have some profits, I apply martin gala system 🙂 Kisses. Seems that LifeTime param. is not actually documented in zorro manual page at least I couldn’t find it. Would like to know the difference between ExitTime vs LifeTime. GoMarkets has binary options on their MT4 platform, trading from your normal account. I think there are a few other’s out there too. Yes.

Some brokers provide binary options through the FX LITE MT4 plugin. You can then trade directly with Zorro through the MT4 bridge and need no button click function. Only the time frame of the bet must be set up – as far as I know – in the order comment field. What about position sizing? Probably via lot size, but I found no detailed documentation. I’ll inquire with the developer of the FX LITE tool. Ok, according to the developer this is the MQL4 command to bet on a rising price with FX LITE: and the corresponding Zorro code: “Size” is the position size in units of the broker’s minimum size, like 1$. “BO Exp:” sets the duration in seconds. If you want to change the position size on the broker’s web interface, it’s just as with clicking the buttons: let the script click into the size field and then send key strokes for setting the size. Great & interesting example Johann – thanks for sharing. How does Zorro evaluate the binary option success? From the code, the ‘set(BINARY)’ is used to automagically evaluate the success of the prediction. In my own simulations of the same algorithm (EURUSD, last 5 years, 5min periods), the win rate is about 60% if the mean of the next period is used to determine success – but 52% if the close of the next period is used (more noisy) Also, some binary options brokers (like IG Index) quote a threshold price which is their prediction of where the market price will be in 5 mins.

Our algorithm needs to determine whether the market price is likely to be higherlower than the broker’s own estimate on expiry (not the market price when the bet is placed). This is hard. The close is used by Zorro. The mean would be wrong since it’s no real price. However 5-minutes data is highly feed dependent, and you will likely get different results with different brokers. Zorro uses FXCM price data by default, but it’s better when you backtest with price data from the very broker you trade with. It’s interesting how many variants of price bets are offered by binary brokers meanwhile. Using a predicted threshold would effectively prevent an algorithmic system since you can not backtest it. Here is a complete list with all scam brokers. Maybe you can add it to your article: howwetrade. combinary-options-scams I get this message: Error in ‘line 27: ‘SET_ORDERTEXT’ undeclared identifier.

“Undeclared identifier” means that your software does not understand what you’re typing. Either your version is too old or you did not type it right. This blog is not really a good place for programming support, but the user forum is. There you can also get the newest version. I completely agree that binary options are easier to trade. Thanks for the interesting article. I found binary. com has an API trading interface. Maybe we can expect Zorro will have ability to trade binaries ? A rare pearl in the sea of binary option articles! I also like a lot the general approach to trading you and the community of Zorro have. Kudos to you! I’m quite new to Zorro, so I think my question will have a simple answer. I tried to change the line: and got a suspiciously higher winning percentage.

As I think this is not because of a real improvement of the method performance, what is the reason for that? Is there a way to place a (binary) trade – talking about training and testing mode – before all other trades expires? Thank you and congrats again! Thanks for the quick reply. I played around further with the script, and noticed an important fact to be taken into account in Zorro when simulating binary options strategies. When selecting a LifeTime much higher than 1 bar, and allowing placing positions when other positions are already open, you will notice that something odd is going on. You may get incredible (but unfortunately wrong…) results, that being due to the fact that by default Zorro closes a trade when another trade on the opposite direction is placed, assigning it a win or a loss depending on the situation at the moment (thus without taking into account the expiry time fixed by LifeTime). I think this is a “bug”, in the sense that Zorro should not behave like that when the the BINARY flag is set. I ‘solved’ the problem setting Hedge to 2, which allows to enter and open long and short positions simultaneously. Maybe this setting of Hedge to 2 should be executed automatically by the program when the BINARY flag is set, in order to avoid wrong simulation outcomes. I posted this info into the Zorro forum as well… Yes. When more than one trade can be open, Hedge must be set to prevent closing a position by opening opposite ones.

Otherwise you could prematurely exit from your bet and book the profit! – This is not automatic, so the consequence of any setting must be carefully considered for emulating binary trading. I have some real experience with autotrading binary options. I built an interface for Newstrading. I used Forex News Gun and rent a server in New York, which put me in the position of executing a trade within 1ms once fundamental indicators are published. It’s an unbeatable system if you take your time to study how the market reacts to the data. I had 80+% winning rate and with the optimal risk (Kelly Formula!) I should be a millionaire by now! However, once brokers realize what’s going on, they block you out with error messages. I would highly recommend to learn how to apply fundamental analysis and how to trade manually instead of spending any energy on binary options because of my own experience. I spent like 2000€ for server rent, deposits I never got back (beware – 24option takes 80 units every month from you account if you don’t trade several month.

StockPair does this as well), Winautomation Pro, and a custom coded method (was one of the customers JCL spoke about – it is possible to beat 57% winning ratio but it’s really hard with technical analysis only! I don’t think it’s possible to beat break even really significantly, so forget about getting rich quick). However, I managed to build a somewhat stable autotrading interface with Winautomation. If you are interested, I’m willing to share my code, but it will need adaptions for your broker. Nice article, I will play with this code the next time I’m bored. I’m sdh309795gaas in the Zorro forum. Would anyone be interested in working together on some of this stuff? I’ve written an nodeJS API for iqoption, along with a backtester that allows the algorithm to be dropped right into the API without any modification, but I’m still trying to figure out the price prediction part. This method gets about 55-57% accuracy when I tested it with the data from iq option. But when you factor in the changing profit rates and everything, there’s just not a whole lot of trades left.

@TeeraLucksanapiruk Where you able to connect zorro with iq option through your API? If that is the case I am interested. how can I get the script or apply the auto robot to trade for me with a good broker like binary. com ? Please guys – I work at the sharp end of the financial industry - these can best be likened to a roulette wheel with a slower time to burn than through your chips. Unless there has been some new market news the price fluctuations cannot be predicted on a five minute interval. Some of the finest on Wall Street make only 75% profitable decisions. The have access to non-public research, 20 years experience, teams of analysts using supercomputers crunching millions of transactions, financial capital (billions) and brokers that work for them. Thankfully they only need to be right on very specific transactions. You don’t give money to Nigerian scammers, why let someone take your money on binary options. I had $5000US dollars deducted from my visa to Optionbot 3.0. But I have not heard back from the company or from my broker who had promised me that by investing I would make a very good profit. Unfortunately I only received 1 call from my broker who set up some sort of auto trade and was told specifically not to touch it, which of course I haven’t. The problem is that now I lost all my money and I cannot reach them either. I am writing this post because one broker named John, from such called: Optionbot 3.0 called me on 25 June of 2016 and forced me to open an account on their website optionbot.

net promissing me that Optionbot will make 100% PROFIT of my deposits. I transferred that day 10 000 Euro by Credit Card. The broker took over my account and started trading. After half an hour, the margin level was under threat and I received a call and broker started to ask for more money. I sent another 5 000 Euro from my Credit Card! On 30 June, he opened 11 wrong positions with a huge loss and I woke up with all my money lost. I instantly called my broker and this criminal which burned all my money said that he will refund all my positions and I will succed to withdrawal all my money. I waited for few hours and tryied to call John, and he never asked. Days passed away, I was trying and trying to call him, to write to his email, but without answers. I want to catch this broker which robbed my money, and made hundred of trades on my behalf without my consent and to punish him for every EUR that he lost, to punish him piece with piece just to understand how hard is to make money. I still hope that I will find justice one day, but for you guys, PLEASE, DO NOT EVER REGISTER OR CHARGE THIS SHITNESS SITE: OPTIONBOT 3.0. Binary options are great financial product but there is a lot of greedy brokers and firms . They stealing money from innocent people through robots, auto-traders and signal services.. All these systems are usually created by unregulated binary options brokers..

On this site you can find many scam systems: binaryoptionsradar. com I wished I have read this article before I parted with my 250US dollars with BDB. Scammers really were able to convince me by calling me long distance from Cyprus. i think he’s trying to scam a lot of people, he made it very good and authentic. This is such a great post in which Binary Options scam is describe in a better way. I am seeking this type of blog from so many days but today i am glad to find this blog. I have been trading binary options with this script on livedemo accounts since Dec. on auto pilot with two brokers. It seems on some days it works really well and on other days it’s the opposite. The end result is, it’s struggling to break even.

Love to work with someone to improve this. Let me know if you guys are interested. It’s all good and well to say that you are succeeding as a trader when your account balance is rising and trades seem to be going well. But I’m wondering if anyone here has managed to withdraw any actual cash from binary trading accounts? Things were going really well for me and I believed I had found a quick path to success when I started trading and winning. But, when I needed to liquidize my funds, it was impossible. Has anyone been successful in getting money out? I have been contacted by a legal team who has informed me that the binary company I invested with will not ever give me my money unless I open a case against them, so I am thinking of doing this. Does anyone have any experience advise about this? Comments like this appear here every second day, and usually end up in the spam folder since they look like bait for advertising “legal teams” or “hackers” to “get money back” from a binary broker. So let me draw this comment out of the spam and answer it: If your binary broker refuses to pay out, the first problem is that you normally do not know their real address, not even their country.

So the chance to get your money back from a Cyprus mailbox is zero. But in the orbit of fraudulent brokers, a whole industry of “legal teams” or “hackers” have established that promise retrieving your money for a fee. You’re then not only losing your investment, you’re losing that fee as well. Sometimes the “legal team” or the “hacker” is the broker himself when they smell that their client has still some money left. At least that’s what I’ve heard about those services. What I so far never heard is that someone really retrieved money from a fraudulent binary broker. Hi JCL I was wondering if you or someone could explain me how to modify the objective() function so it prefers systems with more trades as you suggested. I have been searching a way to do this in the zorro manual but I haven´t found anything yet. The objective function is supposed to return a value that is a proxy for performance. The higher, the better. So you could just subtract a “penalty term” for not enough trades, like this: var PF = ((var)(NumWinLong+NumWinShort))(NumLossLong+NumLossShort) var Penalty = 1.(NumWinLong+NumWinShort+NumLossLong+NumLossShort) return PF – Penalty This is just a quick & dirty example, there might be better methods. Let’s have a discussion some time with regards to. binary options along with what we could do to. ensure that it is more effective for everyone.

Thanks for the whole write up. Looking forward to getting more information on you manage everything regarding money management, legal issues and other things to get things fancy and manageable. Binary options is really not for all. It always bears a lot of risks. This kind of information will help the enthusiasts escaping the bad things. Regards. Thanks for a fascinating article. Regarding trading costs on short term binary systems…mission doesn’t factor in however can you comment if slippage affects the results of this system? I came up with an automated binary options system that trades 650 timesday and backtests in MultiCharts at a 76% win rate (39.5% payout) — which “on paper” is profitable. However slippage brings the real world results down to roughly 70%, making it a marginal loser. Is this the same with your system?

In binary trading, slippage largely depends on the honesty of the broker. Since they are usually market makers, it is no problem for them to generate artificial slippage for reducing the win rate. So it may be worth the effort to test the slippage and compare it with different brokers. In serious trading, slippage has a smaller effect on the win rate since asymmetric slippage is illegal under most regulations. Would this system benefit from applying your MMI as a filter? Not really, since it’s using mean reversion. MMI can detect trend regimes, but makes no difference between mean reversion and pure randomness. Hi jcl…ahhhh sorry I missed that part in the MMI article where you said just that. Sorry about that. Ok, just as a follow up though, let’s assume as you imply that there are 3 modes, trending, mean reverting and random. Obviously the mean reversion system is not going to perform well in a trending market or in a random market…however if your MMI eliminates trades during trending periods, would that not at least be partly helpful in filtering out some of the losing trades? If not, do you know of a method to differentiate a mean reverting mode? ADX is supposed to be effective, however I’ve never had much luck with it in actual system testing. Last question…is your book available in English?

Love your blog! Yes, there are other methods to detect the market regime, often used is the Hurst exponent. I have already on my to do list a series of experiments to find out which detection method works best under which circumstances. FrankyB….pretty sure the only legal way to trade binaries in the US is with Nadex. It’s an SEC regulated exchange though so totally safe unlike most other binary brokers. I’m pretty sure there you’re trading against other market participants rather than against any broker. Glad to find somebody who takes a realistic approach to binary options trading. I believe that profiable strategies can be automated, but they are not available in the public domain. Because when you have a profitable method, you trade it and make money, you don’t share it with everyone, especially not for free. Unfortunately there are hundreds of scam systems (see warnings at thebestbinaryoptionsbrokers. netcategorybinary-options-scam-2) that try to make people believe the contrary. And I see a lot of people fall into these traps, they still believe that somebody will make them money for free. One more thing to mention is that most binary options platforms has an affiliate program so you cant really find a honest review.

Most of the reviews are made to generate revenue and has interest. If you need some assistance in recovering you money lost in binary options there is this company here that will help you get your money back. Advertising link removed Almost died at the end of the article: “If you’re a citizen of Israel, you might not be accepted by many binary brokers since they’re not allowed to fraud compatriots. ” Cool overview. At the end of the day, Binary Options, FRO (Fast Return Options) all derive from various interpretations of the B&S formula and are indeed financial instruments. Sophistication is the basic element of fraud and if you look into HFT there’re a lot of questions and I remember a movie with Haim Bodek talking about weird weird stuff. jcl…does this system enter on the open of a bar or intra-bar if the price hits your pre-defined level? jcl…I’m wondering if I could get your opinion on something. Do you think it is possible, using data mining, that someone could discover reliable repeating patterns in a data series generated by a cryptographically secure pseudorandom number generator that is programmed to behave like a real market? Not talking about cracking it or finding the seed, just patterns that repeat leading to higher or lower prices over a specified timeframe. Or is this a hopeless endeavour? Examples would be: OR more significantly: If it is a random number generator, then it has per definitionem no reliable repeating patterns.

Otherwise it would be a bad programmed random number generator. I guess the reason I asked is that binary. com says about these indices: “These markets are simulated markets that use randomly generated numbers to reflect the way that a real market behaves” So I would think they must have some deterministic algorithm that makes the numbers a little less than random. For instance, volatility in these “fake” markets seems to exhibit mean reverting tendencies similar to the way it does in real markets. I wonder if that is by accident or design? There are many ways to simulate a market, the simplest is using real market data. So I don’t know for what purpose binary. com uses a random number generator, and in which way it is programmed. Since it is a binary broker, I would assume that it is programmed to maximize the user’s losses. This means the generated index depends on how many users bet on rising and how many on falling. Since this info is known only to the broker, you can not use it to your advantage.

Hello everyone, I’m looking to get into trading in this way but would like to read jcl’s book first. Could someone help me out with a link?