Question by Nick: How to predict sporadic put/calls for binary options? I recently began using binary options. I have developed a strategy that depends on a forex pair (eur/jpy, eur/usd etc) alternating puts and calls over 30 minute intervals. Example: Eur/usd, goes from 1.3 to 1.4 between 10:00-10:30 (call) then 1.4 to 1.35 between 10:30-11 (put) then goes from 1.35 to 1.42 (call) between 11 -11:30. Is there any financial indicators that I could use to choose which forex pair best exhibits this sporadic alternating pattern of puts and calls at 30 minute intervals? Thanks! @ jerry thanks for your input, i understand the risk and regulation issues, i did not explain my method in detail, but it has been working so far so I intend on continuing. Id appreciate if future responses actually respond to my question rather than give me your opinion on binary options. Thanks Best answer: Answer by JerryYou are playing a suckers game. Binary option payouts are so poor that you cannot possibly win long term. It is just unregulated gambling at terrible odds. Earlier someone asked about a firm paying 70% on winners. Heres how the math works in that example. Win: 70% Lose: 100% Expected value of each trade: (70 - 100 ) / 2 = -15% You would have to predict over 60% just to break even. A legit options broker would be registered on appropriate government sites. None of the widely promoted sites are regulated. Many are in obscure countries with no customer protection, with at least 2 widely advertised firms in Cyprus. US: Check CFTC and SEC sites UK: See FSA site The CFTC link below about investing risks applies to both forex and binary options. EDIT: I tried. If you genuinely believe that you can predict more than 60% of any class of binary event, you are beyond my ability to help. Losing real money will eventually cure you of that belief. Know better? Leave your own answer in the comments!
Posted on: Mon, 09 Dec 2013 16:23:23 +0000
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