Binary option is not good for earning money.
it is 100% gambelling.
It was banned in the UK & EU for a reason
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It’s not much different than options… both can expire out of the money for a total loss. I do agree 5 min binary and shorter time frames are complete gambling. But longer time frames can allow good hedges on positions.
I did look at Binary options as a product and I couldn’t quite see how to get around the probability numbers. For example, when I put the binary trade on I have a predetermined trade outcome of either profit or loss. This binary result gives me a probability of 50/50. If I bet a $1 on a binary trade that pays 75% my maximum win is $0.75cents if I have a loss… I lose $1. So if I have two binary trades, one win and one loss (50/50 probability) that will equal a net loss of $0.25cents. So to break even with binary options (with a 75% payout), to beat my break-even point I need a win ratio of greater than 57% wins. I have already shown I have a pre-determined binary outcome of 50/50, I can’t get to 57%. After ten $1 binary trades statistically I should be down $-1.25 net. (5 wins= $3.75, 5 Losses = $5.00 = net $-1.25)
So how do I get around this statistical issue? All experienced and successful traders have a good understanding of gambling houses and when presented with this problem they are aware that gamblers have used a strategy called martingale. Gambling houses know this strategy and have countered with betting limits on the tables. The Binary options brokers, no surprise, also have betting limits to counter this strategy. This is why I stick to trading Forex and build automated systems that work.
Regards
Hi Jckbt, I know it’s been a long time since you posted this answer. Can you share your forex automated system if you don’t mind?
Hi Ishelar,
Giving you and update regarding Automated trading systems. I have binned them all after extensive simulated and live testing over many thousands of trades. The reason is because all the trading indicators do not work and have zero edge in any capacity. So when you develop an automated system, it has to use indicators / set of rules to enter a trade. The historical data used to test the system, is just a curve fitted historical record of what would have happened using a preset arrangement of parameters. What this means is using any form of trading rules (indicators) is just an elaborate system of random entry. That is why when taking any system into the present the outcome is completely random and has no connection to historically simulated results. You can prove this by coding up a random entry system and achieve the same results as one with indicators.
A random entry trade generator is excellent for testing win loss ratios and developing a strategy around that concept. From that point on you will need to trade manually and your probability for trading success is quite low.
Regards
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Exactly 
This is over the heads of most all BP members.
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