Hi! T Hi! Thanks for your post. Feel like I've possibly missed a trick on this binary options thing haha. I feel like my style of price action analysis using s&r zones on tge m1 and m5 charts could totally suit binary options. Couple questions if you please: 1. Can you recommend a broker? Preferrably someone who won't make it super difficult to withdraw funds. Looking for very short term options and accurate prices. 2. How do the spreads and commissions work? Thanks in advance!
OK, I am not new to micro scalping of Forex so I've worked years on short term indicators and fast strikes. But what I am new to is the area of Binary Options. Since you live in the UK, you can choose any Binary Options broker you wish. I am U.S. based so I don't have that luxury but I use TradersWay. They have a browser-based offering a white label of SpotOption's platform. Since I've done this kind of "automatic button click" in other contexts, I'm just gonna use AutoHotkey or a small routine I wrote long ago accessible by Java JNI to click the button when my trigger system says "go". So some manual setup, but the ultimate trigger will be fast. The TW implementation of SpotOption does not have an API, as is the case with many, and it also does not accept Limit orders. You click, and the momentary price is what it is. So you should look for a Binary Options broker (there are hundreds) which have an API and get some software developed. But I come back again to the most important part, which transforms this from "gambling" into "professional trading" and that is the ** Analytics ** to support your decisions. You could contact me privately or whatever, but there are many ways for you to take advantage of the Binary Options concept (sometimes called Digital Options), as opposed to the approach of ordinary "analog" Position Trading which most of us do. Best would be if you can specify the Option strike with a Limit Order price, rather than a Market type "do the deal now"; but any form of automation, and you'll want to run on a stable server Windows or Linux GUI as you prefer with fast network connections. I found with TradersWay (SpotOptions) browser implementations from my Home Office, that Chrome, Firefox, Opera would hang on their streaming quotes. We have a Linux/Centos/Gnome dedicated box in Germany so I put it on there using Firefox, and Rock Solid with perhaps 3-4 strike price quotes per second streaming in. So data center quality networking you'll want. You can just access your remote machine's user interface via VNC or RDP (for Windows server). Automation beyond that, and how much you want to pay for software and/or customization is up to you ! So next time you blame your browser, it could just be your Router/Modem and a good server setup with remote access is a great deal these days. I think they call it "cloud computing" LOL I can recommend http://HostEurope.ch (or .de) for Linux and Windows Server hosting, but get a dedicated box since many of the cheapest VPS systems are not good enough. Lots of good providers of cloud boxes. In the U.S. a good provider is http://www.vpswebserver.com for Windows server with guaranteed performance. Scrounge around definitely read Mike's blog and reviews and avoid "the Black List" of crooked brokers. Buyer beware in this "emerging" area of Forex Binary Options. Check reviews and choose carefully. http://binaryoptions101.blog.com Keep your contract sizes low until you see whether your Analytic methods are up to the task... Risk modulation is the key to survival, but you know all that, right ? No commissions, the Losers pay your commission and the House always keeps plenty for itself, which causes the 60%-80% payout rates to fluctuate dynamically. They are also "in it for the money", just like us !! As for spreads Bid/Ask not sure, but I think they use a "price" which is perhaps a midpoint of the B/A or somewhere close enough anyway as far as I've observed so far, but could be anything, broker specific. I am just learning about this, and will investigate in depth a lot more like trying to track their quoted prices, through Browser internal "scraping" and comparing it against other price feeds, but those are just details, all in good time. But pricing precision has been my obsession for many years, so if you strike without delay and have a decent Binary Options broker you'll get a fair price on your deal it appears. Never trust Demo, always do Live trades for "the truth". I use specialized "snap triggering" where the Market deflects a defined amount or "pullback" and then I will trigger an entry. Don't try to pull the trigger entirely manually if you can avoid it, unless you're choosing like 5 minutes from now. But if you are hitting the 30-60 second timeframes, my specialty, then you'll need super fast specialist software to trigger your entries. Other factors to consider, since I advocate "incremental exposure control" is to enter multiple "deals" at differing prices and exposure levels, as opposed to an "all in" deal which most traders use, unwisely in my view. I think they have some Reuters price feeds, but that's all I know right now. HyperScalper
On the subject of Binary options, defined as a venture with a clearly defined exit point and a binary outcome, I would recommend "What I Learned Losing a Million Dollars", Columbia Business School Publishing, available from Amazon.
If you want to leave your Introducing Broker at IB, you should be able to do that by simply Unlinking your account. You should not have to create a new one. Bob
Tha Thanks but, given that the risk:reward is always > 1:1 I do not see how I can make money long term trading this instrument. The win ratio would have to be 70% or better to make money. Which is unrealistic. Good luck and thanks for your posts!
Interactive Brokers are not keen on this, presumably because they do not want to mess up their relationship with ProRealTime, the charting provider who "introduced" me.
I'm trying to get into trading full time as well since the job market is never going to improve. The scary thing is supposedly 99% of people fail, and everybody I know (about 50 people) has also failed. I'm glad I found this forum because it seems the 1% of success stories are all here. Looking forward to learning from y'all!
Yes, with the "up/down" simple "flip a coin" type of binaries returns are typically 70% of the amount at risk. Analytics which has only an efficiency equal to "guessing" will lose, as the house has an advantage. But it is possible to use a number of factors which stack the odds in our favor. I restrict my remarks to Forex underlyings, where I have Analytics. I've been able to do a considerable amount of NADEX scalping on their 5 minutes, and there's a Reward:Risk ratio which can be much more appealing. Up to about 8:1 or so... Beyond that, NADEX options need not be held through the period of uncertainty which precedes expiration, and can be liquidated early for profit, or for defensive protection. So, with NADEX having a floor price of $0 and ceiling price of $100, a CALL (or Buy of the Option statement) at $30 Risks $30 for a Reward of $70, if held to expiration. Alternatively, the real professionals do NOT hold until expiration and so they would tend to scalp the "long" at $30 against perhaps a sale of $60 or more. Holding in the 5 minute options beyond the 4 minute mark is not for the faint of heart But, as in all trading, when Analytics and Technique provide sufficient edge, these Binaries can be an excellent choice. NADEX options are a bit of hard work, as compared with the simpler "foreign" type options, but the complexity exists for a reason, which the professional with appropriate analytics can exploit. HyperScalper