I think it is a given that most free binary options signal service providers are really an affiliate marketing scheme. There really is no other reason for an SSP to provide free signals unless they want you to buy something, sign up with one of their recommended brokers or harass your friends into joining. I know, I post strategies on several websites including my own. My goal is always to provided real, useful, information for traders. This is not the case with the strategy I will be reviewing here today.
Whenever I am reviewing a strategy I also have to look into who is presenting it. Believe it or not it can make a big difference. This strategy is provided by BinaryStrategy. EU, a website dedicated to binary options strategies and broker reviews. I like MACD and use it every day in my trading and analysis. It is good for trading in either direction and comes highly recommended by the author, who is not named. In the given example a bearish candlestick is accompanied by a bearish MACD crossover while prices are at the upper range of the B Bands.
In this case a 60 Second Put option is indicated. If the signal were a bullish crossover occurring at or near the lower B Band then a call would be indicated.
There are some benefits to using this strategy, but not enough. First, it uses MACD. I like, know and trust MACD for analysis and trading signals.
I can recommend it to newbies and experienced alike. It also uses Bollinger Bands. B Bands, and any enveloping indicator, are great tools for traders as well. The thing is, these are not enough to outweigh the risks involved. There are too many risks to using this strategy to name in one article. First and foremost, it is based on 60 Second binary options.
These are the riskiest of all binary options types and not one that I would recommend to anyone. Second, it makes no attempt to determine the underlying trend or to weed out whipsaws and false signals.
Utilizing trend analysis would help to alleviate false signals and improve the strategies success rate, which I will point out is not listed on the website. False signals are a real problem for this system. The chart provided by the author points out several profitable entries but overlooks a number of false signals that would more than off set the good ones. Adding risk to this strategy is the use of a new indicator, I think, called the Mobile Media.
When I looked I could find no mention of this indicator anywhere on the website or elsewhere on the web. In fact, I think it is possible the author is referring to the moving average used to smooth the MACD indicator. I can find no real value to this strategy.
If you use it you will lose your money. It is nothing more than an SEO page aimed at getting you, my trading brothers and sisters, to deposit money with 24Option. The good news is that this web site is indeed a third party affiliate and not operated by 24Options itself. The bad news is that it is an affiliate marketing scheme and this is why.
The author recommends you practice in a demo account…. When you go on the site you will see for your self just how little of value there is. What makes it worse is the rampant use of improper vocabulary throughout this strategy and others I scanned while researching this article.More...